Poor Student No More

As my senior year begins at UNC, I am increasingly aware of the deadline that approaches: Graduation. After this I can no longer enroll as a full-time student at an institution of higher learning, and quite honestly that scares the crap out of me. If I do not have control of my personal finances by that time, I will have to take a job out of desperation. I will fall into the trap of working for a paycheck that goes straight out of my bank account to my expenses, most of which will be student loan payments.

Deferring is obviously an option, but I can only hide for so long from the looming gray skies of student debt.

With the state of the U.S. economy, recent graduates will have much more incentive to apply to graduate and professional schools. It has many short-term advantages — full-time student status, deferment of undergraduate loans, and less stress concerning one’s professional life. In the long-term, it increases skills, education and most likely you will gain immense experience in a very narrow field.

I thought very seriously about applying directly to graduate schools. It was a chance for me to change locations, continue school and avoid my student loans for one, two, even three years. And the chance to go to grad school abroad? Yes, please.

But on second thought and with a bit more analyzing, I knew I could easily double my student debt with just a year of grad school. More importantly though, I know that my true passion does not lie within a grad school. I get antsy just sitting in classes now, eager to be in a more action-oriented environment.

Grad school is a great option for those who have minimal student debt from their undergraduate degree, and those who feel very passionately about their ability to achieve their goals within academia. But if you do not fit these categories, do not let the fear of the recession or entering the “real-world” influence your decisions. You make your own world, and if you let fear drive your world it will inevitably hold you back from achieving not only financial freedom, but your personal goals as well.

There is no doubt that grad school can be a great investment. Especially if you skip the entry-level jobs and go straight into a six-figure salary. How often do you think that really happens though? My sister went to one of the top grad schools for broadcast media and still quivers with fear when her student loan payment is due. Getting a higher paying job does not ensure control of your personal finances.

For me, grad school can wait because one of the major reasons I would go is fear — and I will not let fear increase my debt so greatly or stifle my potential success.

Align your actions with your goals. Analyze your motivations. Question everything.

For more info, check out this great article on the grad school debate.

Peace, love and loans,
Jess