[T.D.]

Hi, I've been having a bit of a struggle with a monetary issue lately, and any input or advice would be greatly appreciated.

Right when I got out of highschool I was severely afraid of being in debt. I slowly got over that as I realized there was no way for me to further my life (academia wise) without it happening, as I was to pay for any schooling by myself with no help. So I applied to university, got in, went for one year and realized that it wasn't 100% what I wanted to do.

So now I have a $6000 OSAP loan to pay off (which I am doing every month) but I also am applying for a different school where tuition is $21,000. On top of that, I would also have to pay for accommodation, food, and all that stuff by myself. The unfortunate part is that the school is privatized and full tuition must be paid 6 weeks prior to the program starting.

I have budgeted out how much I would need for a years worth of rent (although with utilities included), groceries, and all the other important things for living. My original plan was to pay my tuition with a $20,000 bank loan, and then pay everything else with my savings (which will be around $7000). I then realized that I won't have enough of my own savings to do this. So then I thought, well what if I can get a larger loan? (scary!) The bank has said I could get a $30,000 loan (which would be more than enough), co-signed with one of my parents. And this would cover what I need and also offer extra for emergenices. I plan on having a part-time job to make as much money as possible while in school to start paying it off ASAP. I'm just tired of putting off what I really want to do because of lack of funds, I want to get it done!

So I guess my real question, after all this writing, is:
Is it stupid to get a $30,000 loan for all this? Would it actually be better to wait years and years until I have more money saved up?

Thank you for any input!

 

[kevinlk]

Here's my 2 cents.

Tuition for your dream job?

If it is for the job you ever wanted to do, and you know you'll be happy with it, in an human point of view, go for it. You'll spend most of your life working, it's best to enjoy your job!

On the economic side,

How long is the tuition? One year? Two? Is it in a field where you'll be able to get a job right after tuition? What kind of base salary is your job?

Those three questions should answer what you should do, on the economics side. Taking a loan isn't bad if the job you're getting with your education is viable enough to pay back your loan. Also, it might be even more profitable to actually take the loan and course. If you get a higher salary through your education than you would make with your current job ( or other job you plan to do ), the cost will eventually pay off with time.

If you plan to work part-time to pay for daily expenses, make sure to have enough time for studying. Education will be your first goal, as the sucess of it will determine if you can pay back your loan or not.

 

[T.D.]

Thanks for the input! Those are really good questions to ask myself that I didn't really think of before.

The program runs just a little over a year. I've been researching and talking to people, and it isn't too hard to find a job after school. The base salary can start as low as $33,000 but you can definitely work your way up when you have a talent for it.

And I would definitely make more money doing that than what I am doing now!

Thank you again!

 

[The_Number]

Kevin makes an important point, but you also need to think about whether or not you are taking classes *just* to get a job.

If that's the case, can you not get the same qualification from another school where tuition is cheaper or perhaps somewhere where you can commute while still living at home? If the answer is yes and you still want to go to this school, you must be valuing something else in the school. See if you can articulate what this is and then ask yourself: Is this worth the difference in tuition, etc. compared to the less expensive school?

University education is more than just a piece of paper to get a job. You can't discount the intrinsic value of learning, the intellectual atmosphere of the school, campus life, etc. Are these things worth $33,000/year for you? Only you can answer that question.

 

[T.D.]

There was another school I was looking into, which is part of a college (although it is the closest to where I live now, it is not within commuting distance.) However, They don't offer the specific kind of teaching I am looking for, and you are forced to take other courses that are 100% not related to the program. This is one of the main reasons I am looking at the school I am looking at now. I'm wanting to take the program because it is something I am really interested in, not just to get a job. Also, with the other schools and programs in colleges, after 3-4 years of tuition it all adds up to be around the same cost anyways! So I think why not just get it done at a school that I actually want to go to, right?

I 100% agree that the value of learning and the entire atmosphere of the school is very important. That's why I'm heading out for a tour and demonstration class this weekend before I submit my application! I'm really excited to go, but if I don't like the campus much at all, or the atmosphere seems stuck up I think I will rethink my choice and keep looking for more schools. This one just happens to be the one I've wanted to go to for 4 years now.

Thank you for all the input!

 

[Cal]

The best debt that you can take on is for your education. It will get you a job that will help you repay the debt that you are concerned about.

You seem to at least have some financial awareness of this, much unlike most other students, and I am sure that you will do just fine.

Good Luck at School.