@Amarie003 wrote:
Hi! So I am 23 and my spouse is 27. My husband just got accepted into a university that he has always wanted to go to. Unfortunately, even with financial aid, it will put us in debt for $80k for him to graduate with his undergraduate degree in Business. I myself have a undergraduate degree in Psychology, and would like to continue on to graduate school but I am nervous if spending that much money on an education is wise for us. Currently, together he and I make about $55k a year and we have 2 young children. How much is feasible to spend on an education? I was lucky enough to receive my undergrad with no debt because of my parents having saved my college funding since I was a baby, so I currently have no student loan debt, and the idea of contributing $80k for my husband's schooling really worries me.
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Background to provide our perspective for the advice about to be given:
I'm currently 41, finished my last degree, MBA, 11 years ago. My background is I went to a private university, USC in So Calif. to study economics, I got into student loan debt, don't remember exaxt amount, but not too much since my parents also helped pay for some of it, don't remember exactly how much, but I do remember a $8,000 bill one semester, that's after taking out student loans. I also went to a State university for my Master's in economics and then my MBA, I was able to work part time and pay those degrees term by term with no debt. I picked a major and the economy was right (my stars were aligned), I was able to secure a finance position since 2006, first as an analyst then manager. I have been employed ten years in my current organization. My wife was debt free for her Bachelor's in nursing as she went to a State university and worked while in school. She then went to a more expensive state university, UCLA for her Master's in nursing and graduated around 2005, she is 37 now. she has been working at a major hospital in Los Angeles, Cedars Sinai for the past 10 years too. She took out $40,000 in loans for her master's. Here's the deal with our education and WHY it was a good decision, we were fairly young, I being 30 and she being 27 at the time we finished our last degrees. We both chose majors that were employable, I now make about $130,000 and she makes $160,000. I was able to pay off my loans maybe ten years ago. She recently decided to pay off the last $20,000 within 3 months. We were able to do so because we both have strong incomes. We have no kids. Here's the thing, loans will impac the quality of your life, you want to go out and have entertainment, eat out, go on family vacations, buy nice things or buy something, a new gadget, whatever. Having loans over you that you cannot pay back is an issue and can lead to a financial mess if not paid on time etc. Loans restrict your quality of life, but they can also enhance and multiply it if the loan as in our cases, results in a higher paying job. We are both 100% totally debt free thanks to our education and being employable. Though a mortgage will come soon so enjoyiing the moment until then.
Advice:
There are perceived "benefits" to your husband in his mind to get his business degree from this particular university, the prestige factor for him I suppose and I would bet he is willing to pay an extra $80K for it in loans and he already made up his mind, he IS going to attend; he'll argue it'll be worth it since he'll be able to get a high paying job etc. Themajor "business" is broad, is there something more specific he had in mind such as finance, accounitng, marketing, etc...look atthe job ads requiring such majors, see what is the potential pay in your area, that's may put some perspective in terms of the "return" on the degree. My adivce make sure his degree is specific enough that is he employable for a high paying job to be able to pay back the loans and enjoy a quality of life you and your kids want/expect. You too also want to go back to school for a graduate degree, as you already have a psych degree with no debt. Your situation is you two are fairly young and have time to pay back loans, save fore retirement, etc. When / if you go back to school, be sure your degree is employable as well to be able to pay back any loans. Education is the great equalizer, go ahead and take loans out if you are able to use those degrees to secure a high payiing job and pay back the investment; otherwise it may be best to just keep on working as is and get promoted over time etc and you may be better off in the long run this way financially.
