I would be surprised to know that she's explored and threshed out her refinancing options fully. With 5 different loans, even a longer-term refinance could end up saving money if she pays more than the minimum every month.
On another note, I find it interesting that she's not assigning a dollar value to having some walking around town money. There are real opportunities being missed for networking etc., as well as an increased stress load, which can have career and personal consequences. I'm not saying consolidation's the proper way to go; I am saying she may be short-changing her happiness and future upward mobility by focusing only on money when well-rounded balance is important.
While many of the comments question her judgment, I would rather question the educational opportunities society (state, federal government etc.) have provided her. In order to start a receiving a wage she had wager 45% of her potential future income.
Considering all that talk how education is an important investment for society, it is seems like a risky business.
I didn't realize that other states were having tuition problems till I read this article. My in-state tuition costs are $5k / semester, or $10k / year. (And another ~5k / year for other costs like food and books) I'd only be paying $20k+ if I were going to a dorm.
I stayed at my parents house and car-pooled to college each day to reduce costs.
With a bit of summer work, I was able to pay more of my tuition without loans. I left college with ~$30k in loans, and was able to pay that off within a few years. Sizable yes, but no where near the $100k that this person is complaining about.
I do realize that the State of New Jersey is to blame here for ridiculous tuition costs. But again, if money was going to be a problem, there are cheaper ways of getting your education.
I'm having a hard time understanding why she let herself get into debt and complain about it. 1st she could have gone to community college for 2 years and transferred to a 4 year school. Also, living at home would have saved her a lot. There are other option she should have done if too much debt was a problem for her.
If I decide today that I'm going to stop working and do something without an income I need to be ready to finance it somehow, debt or saving. That's reality!
On the other hand, the full college experience is something that nothing can replace but you got to understand that it going to cost. This was choice. The reality is that without debt she would have not gotten a chance to go to school. She should look at the bright side. She got what she wanted and in time she will be done with the debt but she will always be a CPA.
Sounds like she's still oblivious to what median household income is in the United States (~ $45K/household). Her family's $85k a year is almost twice what's normal.
Frankly, it also sounds like her family wasn't supportive at all, either, though there are at least a few plausible situations, like living in too upscale of an area and having high mortgage payments eat their income, which could explain it.
Likewise, she probably should have started at a community college.
...and she cares more about having fancy wedding than getting rid of her debt. Meh.
While the family income is $85k a year it has a single working adult, one person with disability, two children and a senior. So it really depends on how old are the children and what pensions/welfare do the person with disability and senior get and how expensive their care is.
I'm not living in the US, but I was under the impression that getting a community college degree wasn't enough to prepare you for the "CPA exam to become an accountant".
She should consolidate. I had multiple lenders as well and when I consolidated my payment went down from ~750 a month to ~275 a month. It added .25% to my interest rate but it was worth it.
$22,000 per year for 4 years. First of all, this is a gross figure, I can't believe anyone would be paying that for in-state tuition. It is a failure on New Jersey that this is happening... but in a state with 0% sales tax, I can imagine that they have budget issues.
Even then, Community College for 2 years + $44k after that sounds a hell of a lot better than getting $100k+ into debt.
So yes, the state of New Jersey is to blame for their broken in-state tuition system. Nonetheless, the approach to schooling here isn't exactly optimal either.
[+] [-] _archon_|11 years ago|reply
On another note, I find it interesting that she's not assigning a dollar value to having some walking around town money. There are real opportunities being missed for networking etc., as well as an increased stress load, which can have career and personal consequences. I'm not saying consolidation's the proper way to go; I am saying she may be short-changing her happiness and future upward mobility by focusing only on money when well-rounded balance is important.
[+] [-] dimitar|11 years ago|reply
Considering all that talk how education is an important investment for society, it is seems like a risky business.
[+] [-] dredmorbius|11 years ago|reply
http://money.usnews.com/careers/best-jobs/accountant/salary
And accountants make reasonably good money (there's also better upside potential, but median is a good planning basis).
[+] [-] dragontamer|11 years ago|reply
I stayed at my parents house and car-pooled to college each day to reduce costs.
With a bit of summer work, I was able to pay more of my tuition without loans. I left college with ~$30k in loans, and was able to pay that off within a few years. Sizable yes, but no where near the $100k that this person is complaining about.
I do realize that the State of New Jersey is to blame here for ridiculous tuition costs. But again, if money was going to be a problem, there are cheaper ways of getting your education.
[+] [-] WheelsAtLarge|11 years ago|reply
On the other hand, the full college experience is something that nothing can replace but you got to understand that it going to cost. This was choice. The reality is that without debt she would have not gotten a chance to go to school. She should look at the bright side. She got what she wanted and in time she will be done with the debt but she will always be a CPA.
[+] [-] ibejoeb|11 years ago|reply
Perhaps there was some sort of dissonance between the expectation and the reality of how this system works.
School is expensive, probably to the point of being a real problem, but there's not a lot of substance in this article.
[+] [-] Glyptodon|11 years ago|reply
Frankly, it also sounds like her family wasn't supportive at all, either, though there are at least a few plausible situations, like living in too upscale of an area and having high mortgage payments eat their income, which could explain it.
Likewise, she probably should have started at a community college.
...and she cares more about having fancy wedding than getting rid of her debt. Meh.
[+] [-] dimitar|11 years ago|reply
I'm not living in the US, but I was under the impression that getting a community college degree wasn't enough to prepare you for the "CPA exam to become an accountant".
[+] [-] jgmmo|11 years ago|reply
[+] [-] cylinder|11 years ago|reply
[+] [-] dragontamer|11 years ago|reply
Even then, Community College for 2 years + $44k after that sounds a hell of a lot better than getting $100k+ into debt.
So yes, the state of New Jersey is to blame for their broken in-state tuition system. Nonetheless, the approach to schooling here isn't exactly optimal either.
[+] [-] lotsofpulp|11 years ago|reply