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dragonfly

join:2012-09-04
reply to TOPDAWG

Re: Student loans why don't some people pay them back?

The "free education" usually comes at a price -- you need a minimum GPA out of high school in order to qualify.

Since I already described my debt situation, I'll describe my own unique circumstances:

- Dropped out of high school at 17 due to emotional breakdown following my dad's death. Failed all my last year's courses but one.
- Drifted around for 5-6 years doing odd jobs and generally being a loser
- Went back and finished high school at the age of 23
- Mother is on a pension and lived in the boonies, I had no savings, student loans it was, and I needed to live away from home
- Moved to Montreal for the last year of CEGEP, had a great CRC score, chose Dawson, promptly get caught in the middle of the school shooting
- Switched to Concordia as a mature student in Biology, to get out of that toxic environment at Dawson
- Four years of university, I changed programs 3 times and took a year longer to graduate than I should have otherwise.
- Graduated with a BA in Classics, minor in Computer Science
- Landed an internship at a software engineering firm, hired on full time as a C#/ASP.Net developer, I now gross around $55k with two years experience.

Student loan of $37k mostly due to being ineligible for bursaries my final year. It'd be $28k otherwise.

I can afford to pay it back, but $300/mo for 15 years is quite a lot for anyone.

Anyhow, the point being, I myself would not have qualified for the "free tuition" under the Nordic system due to a low GPA out of high school.



dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON

said by dragonfly:
I can afford to pay it back, but $300/mo for 15 years is quite a lot for anyone.
it's peanuts compared to a mortgage.

as well, had you not made that investment in yourself, instead of a decent job paying $55k/year, perhaps you would be pouring coffee for $25k/year...the ROI on your education is only a few years (factoring in your taxes, etc)...that's a pretty significant improvement.

quote:
Anyhow, the point being, I myself would not have qualified for the "free tuition" under the Nordic system due to a low GPA out of high school.

then you work to improve your marks, or you save up your own money and go (which is what you did, with student loans)...either way, you are better off.

and good for you for going back to school and bettering yourself.
--
People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

- George Orwell


Raptor
Not a Dumptruck

join:2001-10-21
London, ON
Reviews:
·Rogers Hi-Speed
reply to dragonfly

said by dragonfly:

- Landed an internship at a software engineering firm, hired on full time as a C#/ASP.Net developer, I now gross around $55k with two years experience.

Student loan of $37k mostly due to being ineligible for bursaries my final year. It'd be $28k otherwise.

I can afford to pay it back, but $300/mo for 15 years is quite a lot for anyone.

If you're grossing $55k a year, you should be able to pay down that $37k in less than 5 years, and that's still not being all that aggressive. I don't know what your interest rate is, but unless you can perform better on your investment returns, that ought to be your focus.

dirtyjeffer See Profile is right, I imagine your salary wouldn't be in the mid 50's and likely still to rise (as you're still new) if you didn't put down the coin to goto school in the first place.

As to the OP's original point, some people are just lazy. Others may have a more active money management style and their savings are returning higher growth than the interest on their loans. It's just math in that case.
--
....where's my fiber?


urbanriot
Premium
join:2004-10-18
Canada
kudos:3
Reviews:
·Cogeco Cable

said by Raptor:

If you're grossing $55k a year, you should be able to pay down that $37k in less than 5 years, and that's still not being all that aggressive.

More than a decade ago I was grossing a fuckton less than $55k a year and managed to pay off around $30k in 5 years so I don't see that as an issue for anyone. It does take a lot of working hours though... work hard now, play more later.


TOPDAWG
Premium
join:2005-04-27
Midland, ON
kudos:3
Reviews:
·TekSavvy DSL

yeah during school I had no life hell don't have much of one now. I never smoked can't even tell you what alcohol taste like as I've never had any and it's rare for me to go out. I'm a boring Mofo.

I still have a lot of crap I don't need but yet never been in debt.



Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4
reply to urbanriot

said by urbanriot:

More than a decade ago I was grossing a fuckton less than $55k a year and managed to pay off around $30k in 5 years so I don't see that as an issue for anyone. It does take a lot of working hours though... work hard now, play more later.

The money is practically free though and the payment terms are the most flexible you'll ever encounter, so I can completely understand people taking as long as they want to pay it off. My wife certainly does, and the extra cashflow each month lets us pay for, you know, baby food and diapers.

You can't just walk away from it, though. One way or another the loan is getting paid off, even if you go bankrupt.