At the University that I attend for my MBA program, tuition will be greatly increased. Tuition, per credit, has been increased to $339.50 for College of Business students. For all other graduate students (excluding Engineering), the cost per credit is only $239.50.
With that being said, many of my peers are even more reliant on Student Loans to pay for their education. I am fortunate enough to have my parents pay for my education, so I do not have to pay for my grad school.
Student loans can be wonderful for those who need them. Low interest rates and deferred payments make them an ideal candidate for any student. What really bothers me is the lack of research that goes into taking out a student loan. Just because your payments are deferred does not mean you’re not still accruing interest.
Another thing that irks me is when your classmate/friend rolls up in a brand new 2011 Ford Escape. How did they pay for this? “I took out a student loan.” Good for you. A $12,000 used vehicle would have worked just as well as the $20,000 brand spankin’ new car you just purchased, but what expert am I?
And taking that a step further, what PEEVES me is when someone goes on a shopping spree. Why? “I had money left over on my student loan.” Do people not realize they’re paying the interest for these loans? Isn’t paying these loans off more ideal than a pair of $60 pumps that look just like the rest?
Did you know that:
- The average rate of tuition increases at TWICE the rate of inflation.
- 2/3 of college students have loan debt after graduation
- Average student loan debt is $42,000 for graduate students
- You can defer payments up to 3 years after graduation