Opinions needed (or, help me resolve my debate over school financing)

In My Humble Opinion
1

I’m a grad student, finishing up my second semester. I will either finish in May 2004 or August 2004. The debate comes when I try to decide whether to take $7,000 in loans for this summer (stupid out of state tuition) or to wait and go next summer.

I have an assistantship for next year. This provides a tuition waiver for Fall 2004 and spring & summer 2004. I’ll still have to take out some loans to cover fees, books and living expenses (beyond what the stipend covers), but nowhere near the $24,000 that my aid package consisted of.

I have two options:

I can take out a Perkins loan ($3k) and a private loan ($4k) for this summer, take two classes and finish up next May. Or, I could find a summer job that will (hopefully) pay my rent/living expenses for the summer and take two classes next summer.

The pros & cons of going this summer as opposed to next:

Pros:

  1. There’s a class that is offered by a visiting professor that I really want to take - it fits with my interests very well. This class will not be offered again during my time at this school.

  2. I have this idea that academic library positions may be easier to get if I’m finishing in May rather than August. (I do have an e-mail in to one of my professors to verify/disprove this fact).

  3. Because one of these loans is an external loan, not a federal student loan, having it may help me improve my credit - I made some mistakes, and I’ve been working hard to get things right (all bills are now paid ontime and the like). I have already been approved for this loan, though I have not actually accepted it at the moment.

  4. Definitely having enough for rent & living expenses this summer. That $7,000 includes an “extra” $2k that will cover rent, textbooks, utilities and such. I have savings to use for May. Anything left over goes into the savings account for when I have to move.

  5. I’d get a graduation ceremony when I finish this degree. There is not one for students graduating in August…I’m still trying hard to decide how important this is to me, but making this career switch has been a big deal.

  6. (This should, technically be higher on this list, but I don’t feel like re-numbering everything). The other class I’d like to take this summer is a pre-req for a class that’s only offered in the fall. If I don’t take this class this summer, I cannot take the one in the fall and will not get a chance to take it again. The fall class, however, is not one that is really geared toward my interests in the profession, and I do not have my heart set on taking it.
    Cons:

  7. $7k more in loans. That, along with the loans I took out for this year and the (small) amount I’ll take out for next tend add up. Starting a new career with that much less in loans can make a difference.

  8. The possibility that there will be classes offered next summer that will be as interesting as the one this summer - so I won’t be upset if I miss it.

  9. Perhaps not finding a summer job that will pay the bills - this would be a huge problem for me.

4.?? Any others?

I’m at a point where I lean one way, then five minutes later I lean the other way. I am currently registered for summer classes - because one of them fills up early and if I didn’t register, I wouldn’t get in at all.

Opinions are a great thing. I’m waffling badly on this one, and I do need to make a decision shortly. I’m just weighing pros and cons and I’m not getting anywhere, so perhaps objective views will help.

2

Wow. I’m surprised you have no responses yet!

I’d take the two summer classes. I get a feeling that you are not wanting to drag school out until August. The extra loans will not be overwhelming once you are out of school and into your career.

3

In your case I believe the pros outweigh the cons. Additionally, you never know what the enconomy is going to do. If you have it on good authority that it will be easier for you to get a job with your degree soon rather than later, then go for it.
You should be able to find some summer job, even if it’s flipping burgers, that will tide you over for a short bit.
I am for getting everthing out of the way now. $7000, while a goodly sum, is not an insurmountable debt, and should be fairly easy for you to pay off. And, as you mentioned, with regular on time payments, will do wonders for your credit standing.

4

Did you forgot to factor in the extra money you’ll make once you get a job with your degree? Three months of whatever your new salary is could certainly help offset that $7,000, assuming of course that whatever job you get pays more than a grad student assistantship. (Which is not a hard stretch of the imagination, unless you get a job collecting aluminum cans.)

If your new job pays $2000/month more than your assistantship, then your net loss taking out the loans is only $1000. If it takes you an extra month to find a job when you graduate in August compared with graduating in May, it would actually cost you more not to take out the loans.

5

Thanks y’all. While I know that this is ultimately my decision, other opinions do help. I’m still waffling, but I’m going to make a decision by Monday at the latest - just so I feel settled. I’m leaning strongly towards taking the classes this summer though.