student loans

[frugalone]

What's your take on student loans? Are they to be avoided at all costs (pun intended)?

Recently, a family member offered to pay for my master's degree (though I'm unclear if that's full time or part-time). She said I would have to pay my own living expenses. I know some people take out student loans and they can live off some of the money. If I'm unable to find sustainable employment, should I even consider this?

[Zoebird]

I would avoid it at all costs. yes.

[ApatheticNoMore]

Why are you taking them out? Is the issue that you can't find work? Getting into more debt isn't necessarily going to help that!! IMO that is one of the absolute WORST reasons to take on school debt!! Sure if you somehow manage to transition to just the right field it might work but .... consider other ways to do this, community college, certificate programs etc. before signing up for the debt.

If the masters is just for salary improvement, that seems risky too, how certain are you that you'll get it? Are there other ways to get the higher salary (working for a better company, getting valuable training that isn't necessarily a degree etc.) I guess in some things like teaching levels of salary are by official policy tied to level of education and it is pretty straight forward, in a situation like that it might make sense. But much of the world isn't realy like that and while there may be a correlation between pay and level of education it's a loose correlation. I wouldn't do it without overwhelmingly favorable odds of it indeed leading to more pay. And in this economy when jobs period, never mind higher paying jobs, are getting harder and harder to come by (and you have to figure in that things in the economy may very well not get better and might get worse). I mean really this is an economy where the market value of most degrees is DROPPING - that is the trend!

Now if it's for career change that's a little more difficult. If you dislike your current job and want to do something different, hmm. If you dislike it enough there comes a certain point well hey maybe you should just bet it all on a change ... however I'd at least consider the other possibilities for career change first (the one's I listed - community colleges etc.). But obviously for certain careers you do indeed need the masters. So if your true dream is to work in a field that requires a masters, well there's going back full time and night school I guess. And they both have some disadvantages. Better make sure your new field has good employment prospects and it might be worth it.

The debt will be an obligation you won't be able to get out of. Don't take it out for a poorly thought out reason like "well I can't get a job now, maybe getting a bunch more education will work ...." or "the more education anyone has the better". A better thought out reason is: if your field is heavily degree stratified (contrary to popular belief most aren't, but something like a 2 year versus an RN nursing degree might be a real difference, or a CPA that can lead to being self-employed is better than just a bachelors in accounting, etc.). Another decent reason is if you know exactly what you want to do with your life, have researched it extensively - interviewed many people about it - even tried out similar stuff if possible in a voluteer capacity, it has good employment prospects. and the masters is the only way there.

[bunnys]

I think education for the sake of education and making you a better, more dynamic, interesting and interested person is absolutely a noble endeavor and should be pursued if you want. I do not think the only reason to pursue education is because you think it will pay off financially in the long run.

That said, education is terribly expensive and the current system is fraught with high tuition rates and student loan/repayment programs are really skewed against the student and to the benefit of large banks.

So I can understand your predicament. It's a shame you have to think of education on a mercenary level.

Basically, I don't know what to tell you. Education is good but student loans can be crippling.

[artist]

There is no reason you would have to take out loans if all your concern is your living expenses. I assume you are paying those expenses now right? So going to school shouldn't make a difference (especially if it's paid for by a family member). Cut back the the stuff you don't have to have (cable, cell phone with extras etc.. to ease up some cash for books and such and enjoy the opportunity. I worked full time while going to college... You can do this.

[AmeliaJane]

I think the lead question, should student loans be avoided at all costs, and the specific question of whether loans are right in this set of circumstances are two different things. I had student loans for about a third the cost of my college education. My parents paid a third, and I had scholarships for a third. I paid them off about six years ago, and it was no big trauma. On the other hand, the other posters are right that it is very easy to take out a lot of loans and end up with a huge amount of debt with no actual improvement in the job situation. I cringe whenever I hear young people tell me they are taking out a ton of loans to join my overcrowded, underpaid field. So, I would just take a really hard look at your specifics. What degree are you looking at? What options do you have? (Full time, part time, online)? What do they cost and how much would this relative throw into the pot? How much can you really reduce your costs of living? What are your options for income? For instance, with tuition (the big chunk paid), maybe it makes sense to work a few hours a week (like 10) and take out small loans. Your choices aren't either 0$ or $80,000 debt. The other thing to keep in mind is that depending on the program, grad school can be hard. Really hard. I did four years at a highly selective undergraduate college and graduated Phi Beta Kappa, and I thought I knew what hard academic work was. Then I did four years in graduate school, and realized that I knew nothing about it. My friends who teach at the college level, and also studies I have read, say that one of the major reasons for student failure is not lack of ability or will, but trying to work too many hours and go to school at the same time. As I say, it depends so much on you, the way you learn, your grad program etc etc--others work during graduate school (my mom for instance) and do a terrific job. Just want you to have a variety of perspectives.

[iris lily]

Chasing a master's degree seems to be the project du jour for many young people today. I would really question the utility of it.

That said, I know that for some professions an advanced degree IS the professional credential for that field, and that is fine. Just don't be a lemming and follow the group. Apply analytical thinking to examining what that degree will really do for you.

[frugalone]

Lots of questions here. I will try to answer them (not necessarily in order!)
1. The degree in question is master of library science. No, it is not guaranteed I would get a job, but as I am already working in a library, there is a chance that I could segueway into librarianship as a career. If you do NOT get an MLS, you never make any *decent* money in the field. You usually don't advance to any higher positions, either. Sadly, it's a professional degree w/o the professional pay. It does seem to be necessary in some respects, however.
2. I do think I am ready for a career change.
3. The program could be taken on a part-time, online basis, at a state school (read: cheap).
4. How am I paying expenses now? Early withdrawals from my 401(K) and a small amount of money from a part-time library job. After 3 years of unemployment, I haven't even gotten close to getting back into my former field, or even the field before THAT. I also had some money from a relative.

This is all just a thought. I do not really want to incur debt...but at the same time, I am not sure how I would pull this feat off!

[iris lily]

Can you move for a job in the library field once you have that degree? If not, carefully, very carefully, evaluate the local job market. If you like the place where you are working temporarily, find out how many MLS positions they have open on average per year, and--do they hire new grads? Or do they require professional level experience for those jobs?

[cjones]

Frugalone, it sounds like you've had a lot of bumps in the road. I truly wish you well. The library field is very tight job market now, with many institutions closing their library functions. Some key questions have already been raised... I would add this: what will you do to distinguish yourself and make yourself into a rock star of a qualified M.L.S. graduate who will knock potential employers off their socks when they read your resume, your blog, and your unique, value-adding skills for their organization? What volunteer work will you be able to show that you have done in some venue related to librarianship or information skills? It won't be enough to have "just" an M.L.S. and some part time work experience if you want to transition to full time work in this field. I don't say this to discourage you; I believe this is realistic advice that I hope may be helpful. I wish you well--you are asking some smart questions.