Graduate student loan debt accounts for 39% of all student
loan debt, though graduate school enrollment is 14% of
overall college student enrollment.
Well, grad school is more expensive. Way more expensive than most undergraduate programs.
Graduate students now collectively owe as much as 40 percent of the estimated $1.2 trillion in outstanding student debt, according to the New America Foundation, even though they make up only 14 percent of all university enrollment.
(from the Hechinger Report in the Time story linked to above)
As with undergraduate student loan debt, whether it makes sense to borrow for a degree, depends on, how much you are borrowing and how much that degree is worth.
This is the analysis I never hear from my student loan clients.
Many of them just kept taking grad school courses to kick the can down the road on the due date for them to start repaying their student loan debt.
How about for medical school?
With Obamacare’s future up in the air, in the courts and probably Congress, difficult to say.
More student loan debt for law school? Not so much.
According to the American Bar Association, the average debt taken on by a law school graduate was $84,000 if you attend public schools and $122,158 if you attend private schools. This is just for going to law school and doesn’t include the cost of undergraduate education.
The larger issue with taking on so much debt for a law degree is that the majority of this money has to be borrowed through private student loans, which offer far fewer student loan forgiveness options and repayment plans. Private student loans also carry more risk than Federal student loans. This just leads to more borrowers being in financial trouble for attempting to go to law school.
Few Jobs, Little Income
The new income repayment programs announced last summer, limiting payments to a lower percentage of income and wiping out the balance after 25 years, may help some with grad school student loan debt, but, best bet?
Do not put yourself in that situation.