Is it worth it?

[Amanda695]

I'm wanting to major in Psychology, but there will be so many student loans. This is a passion of mine, but is it really worth it?

[dczech09]

I'm wanting to major in Psychology, but there will be so many student loans. This is a passion of mine, but is it really worth it?

What do you want to do for a career? It is important to have an idea. A degree in psychology alone is worthless and has no market value. My best friend got a bachelors degree in psychology but had to get a masters before he was able to make some money in the field.

Psychology is very difficult as you generally need an advanced degree in a specific focus before anyone will hire you. This of course can mean quite a bit in loans, and often for modest pay at best.

If it is you passion, then great. But figure out what exactly you want to do, what type of education, certification, and training you will need. Keep the loans modest by keeping your college choice modest. My best friend (who went to a private school) agrees that the private school pedigree is not worth the extra cost. A state school will do just fine.

[disneysteve]

I'm wanting to major in Psychology, but there will be so many student loans.

Why will there be "so many student loans"? What about going to community college? What about going to school part time while working? What about moving in with a few others to keep your iiving expenses ultra-low? Could you move back with family temporarily while you pursue your degree?

Is it worth going deeply into debt? Probably not. The general rule of thumb is not to borrow more than your anticipated first year income after school so use that as a rough guide as to how much is appropriate to take out in student loans. If you're thinking about an amount that is significantly higher, I'd be considering other options.

[krantcents]

Are you majoring in psychology to become a psychologist or therapist? If so, you need to get at least a Masters or preferably a Phd. You should cut corners wherever you can with community college, scholarships, fellowships etc. If it is a passion, you should pursue it, but cut your expenses to keep the cost low. You will probably find out in college, if you really have what it takes to achieve it which means talent, skills and grades. Good luck.

[dczech09]

The general rule of thumb is not to borrow more than your anticipated first year income after school so use that as a rough guide as to how much is appropriate to take out in student loans. If you're thinking about an amount that is significantly higher, I'd be considering other options.

Agreed. Definitely do not borrow more than your anticipated first year income, which is even more reason why you need to understand what you want to go to school for.

IMHO, the "first year income" rule may be a little high. Personally, I took out about $32,000 in loans and got a job making $42,000 after college. Even that debt load seemed a little high and it hindered my ability to invest for retirement at full speed until I reduced the debt load a bit and made more money. Now, my remaining student loans carry a payment that is a couple of percentage points of one paycheck, but that is still a check I do not like writing

Try to keep your loan payments under 10% of your take-home pay. That might be tricky as you may not know your loan payments until after you graduate.

The big thing that people need to understand is the opportunity cost of student loans (which is probably more costly than the interest). If you borrow too much, it will mean less money to spend, invest, or put towards a house. Many people have to forgo home ownership for a while due to student loans.

[J.Apple902]

sorry but in America, no. In order to make any $$ or have a successful career in pysch, you'll need an upper level degree too, so even more debt (like some are mentioning).

If you really want to go into the field, sure, follow your dreams. But the return on the investment of a pysch degree (along with most arts degrees in the last decade) is so so low compared to math/science/engineering/business :/

even teachers get shorted in the US, a very important occupation