According to an article, found here, too little student loan debt can be a problem also. Is that even possible? I have posted in the past on how student loans can be seen as “good” and also how they are bad, but how could graduating with absolutely no debt be a bad thing?The article talks about Jesse who “scrounges for free food at campus events and occasionally skips meals.” He doesn't exercise, sleeps only 5 to 6 hours a night and takes 21 credit hours. Universities say that there are a lot of students like him.
“Students who take extreme steps to avoid debt at all costs, may get stuck with something much more financially damaging than moderate student loan debt. They may not wind up with a college degree. To pay for college and minimize borrowing, students are working longer hours at jobs and taking fewer credits. They're less likely to enroll full-time. They're living at home. They're “trading down” to less selective institutions with lower prices, and heading first to cheaper community colleges with plans to transfer later to four-year schools.”
Colleges are saying that people like him are less likely to graduate. Universities are saying that everything stated in the above quote is a major risk factor which leads to students not graduating.
WHAT?!?!?
I wish I would've done some of that stuff (not the going to a less selective school though), I would've saved a lot of money. I could've lived at home and attended the community college for the first 2 years.
Data also shows that 86% of students who borrow for college attend full-time, compared to 70% of students who don't borrow for school. Also to go along with that data, 60% of full-time students receive a bachelor's degree within 8 years, compared to 25% of part-time students.
I know I'm not the average person, but when I was in college, I often took 21 credit hours and I always worked full-time. It is hard, but it is possible. I graduated with debt, but I do have things and experiences to show for my hard work.
What do you think?
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Tanner says
November 30, 2011 at 11:09 amI am not sure how I feel about those 'studies'. If I didn't know any better, I'd say universities are trying to shine the dark light onto frugal practices because it makes them less money. Starting at a community college is one of the many things I wish I had known and done as I went through school.
House of Sykes says
November 30, 2011 at 11:31 amwhether good debt or bad debt, it's still debt to me. it's still a payment each month that is keeping me from doing what i'd really like to do, whatever that may be. our goal is to have all debt (with the exception of our mortgage) paid off by december 2012. at this time, we have $10k in student loans, $10k in car loan and $1,500 for our king size tempurpedic mattress. we are on a strict payment schedule and we will get it done.
Holly says
November 30, 2011 at 12:39 pmThank goodness for the GI bill! I would be paying a ton of debt when I finish my degree if I didn't have it. It may not cover everything, such as books, but it is taking care of a lot. I agree with House of sykes, that debt is still debt, whether it's good or bad.
Michelle P says
November 30, 2011 at 12:45 pmI agree Tanner, it seems like the studies were just made by the universities themselves, so they seem extremely biased.And House of Sykes and Holly, I agree. All debt is debt, whether it's "good or bad".
diggingoutandup says
November 30, 2011 at 1:39 pmThe studies seem to be taking a handful of valid data and jumping to conclusions with it. Are people doing part time studies less likely on average to graduate? Sure. Are people who borrow money for school more likely to take their studies full time? Sure. Does that mean if you don't borrow money you're less likely to graduate? Ummm, no. That's where they're joining together pieces of information that conveniently fit, though likely don't belong together.
Aaron Hung says
November 30, 2011 at 2:20 pmWhile I do not like paying my student loans, I love the fact that I can claim the interest that i paid during the year on that student loan. gives me a little something extra:D
Newlyweds on a Budge says
November 30, 2011 at 2:45 pmwow i never thought of that. but the average full time student takes 8 years to get their bachelor's? I find that hard to believe. isn't that kind of long?
nicoleandmaggie says
November 30, 2011 at 2:51 pmMy husband and I are professors. Yes, we get kids who fail classes because they're working full time and going to school full time because they don't want to take on debt. This means they spend an extra year or two in school or they don't get the degree at all. It is a false economy.
Courtney B says
November 30, 2011 at 2:53 pmI have a hard time reading articles like these! MOST people work full time and cram in as many credits as possible. Who's to say that they are doing the wrong thing by avoiding ridiculous amounts of debt. Or that they are hurting their grades? Ah!
Ana says
November 30, 2011 at 3:46 pmI love your blog, it's so informative!
femmefrugality says
November 30, 2011 at 5:58 pmI think it's all about commitment either way. I'm trying to do it without debt, and if I want to keep getting my scholarships and grants I have to keep going and going full time. It's near impossible to graduate without all the debt, but if you're not going into a field that will allow you to realistically pay that debt back on time…I say its worth it taking a little longer.
Debt-Free says
December 1, 2011 at 3:24 pmI struggle with this a lot. I am in a program of 60 people and am one of two who works. I know that if I work too much, my grades will suffer, which will prevent me from getting a job. But I keep taking as many shifts as possible because I don't want to be buried under a mountain of debt.