Grad School(Student Loans) Advice? Thanks!

[foodnetwork]

I was accepted to grad school; however, I wasn't offered a graduate assistantship at least for the fall semester. Therefore, I am only eligible for unsubsidized loans at 6.8% interest.

I would need 15,000 in loans for the first year if I was not offered GA position in the spring. Overall, it could be around 55,000 in student loans because I already have 30,000 in student loans for my undergrad.

However, the program is a hybrid program allowing one to take classes online and/or on campus. If I did online for the first year it would probably be around 4,000 in student loans.

I think being on campus would be a good choice in terms of being able to get internships and converse with people in the field. At the moment I am unemployed and living at home.

In addition, a university that is closer to my home that I could commute to was just approved for the same program; therefore, I could transfer to that if accepted. Financially I don’t know what to do- Any advice?

Thanks

[breathemusic]

An important part of considering whether to take out any student loan debt is to make some quick calculations to approximate what your monthly loan payment would be once you had to start paying everything off. And then also what the average starting income is for the field that you're hoping to enter once you graduate. $55k in student loans could very well be do-able for some, but may be an impossible burden for others. It really depends on your situation.

[bjl584]

I would get a job before I went to school. Racking up $55,000 in debt while unemployed and unable to even pay the interest that will accrue on the loans is a bad idea.

Grad school isn't going anywhere. Go get a Masters Degree when you are in a better financial position to do so.

[BMEPhDinCO]

What's your program? Engineering and science have the highest chance of a GA/RA in the spring since a lot of grants are funded in January.

That amount seems very high to me for one year. I spent closer to $12k (with tuition, fees, health insurance...). You can also take less credits for the first semester and if you get a GA, then bump it up.

As you mentioned, the other option is online. This is usually best for MS/MA students for sure, but if that's what you are doing, then it is fine. I would check into department seminars, events, etc and make sure you go for those, so you will still be involved. You can also see who's in the class and get together with some of them for study groups. You should also start contacting advisers who may be in a position to offer a GA/RA. No reason you have to be in classes to be on campus!

From a strict money POV - you shouldn't ever pay for a PhD for more than 1 semester. If you are going for an MA/MS, it's more up in the air. I would advise taking the least amount possible in loans. With your undergrad already, it'll be pretty hard to justify more. I also had around the same after my BS, but my MS and PhD have been stipends, lab work, etc so another $17k or so (not done yet) out of pocket but working in between MS and PhD meant no extra loans were needed. So take the online classes and find other ways to make connections. If you really want to be smart about the money though, find a job and save up for a year before going back. Schooling isn't a substitute for the workforce and you shouldn't use it as an alternative. It should be because you can't get further in your field without another degree. Or that you want the education to change careers. Not because the job market is weak.