Graduating college with outstanding debts

LegacyUser

Hi, I am a 24 year old student and in my final year of study. Since I returned to college back in 2008 I have run up a bit of debt with the banks through various student travel loans and overdrafts. Despite my limited income over the past 2 years I have still managed to pay back some of my loans but last summer I decided to go abroad to work for 4 months and troubles landing a job caused me to spend all of a loan I had taken out. Until this I was doing quite well and was looking to be graduating mostly debt free, but now however I am at least going to be about 2k in debt come next summer.

The main problem is that I am hoping to go abroad again once I finish and this has been my plan for the last 3 years. It's actually my dream more than anything and I long to go back every single day. I was willing to borrow again to pay for visa, flights etc once I was debt free and then to pay this back from abroad. Now though it just seems like such a burden to borrow again as I have outstanding debt as it is. I am now really stressed as to what I am going to do. It just seems next to impossible to get a job in Ireland and pay back these loans whilst trying to live at the same time and I don't want to be waiting around another year before leaving. I already feel time is ticking away as I will be 25 by the time I am actually finished college and am ready to go and I want to be out there while I am still young before things get more serious.

My friends who work recommended that I just try to get as debt free as possible and then borrow again to go abroad. They reckon I might as well be out there trying to pay back loans than in this country right now. Sorry I know this really isn't a big problem and probably seems like a very self centred post but this issue is really causing me a lot of anxiety lately as I feel sort of trapped here with these loans over my head. Was just wondering if anybody could perhaps offer any advice?

Thanks

Tusky

I dont see what the problem is ? Sounds to me like you are living in lala land and I have no sympathy. Im sure most people would love to go travelling. I saved up for a year and managed to get away for 3 months last year and it was amazing. I would love to go travelling again but I simply cant afford it. You cant afford it either so get it out of your head for the moment.

Finish college, try find work to pay off your debt and then try SAVING some money to go travelling. Not a good idea to be borrowing considering the uncertainty surrounding paying back the loans. Also 2k is a relatively small amount of debt when compared to what students in the US and UK owe after college. You could pay it back in a month or two if you worked hard.

Again - I have no sympathy. You borrowed money to go travelling...for a holiday. Its not like you had to get a loan to pay a medical bill or something.

whatsamsn

Its all about looking at the big picture op

You're 2k in debt. No one wants to be in debt but 1, its not the biggest figure you could be in debt and more importantly this degree could be something you may need to rely on in the future.

So weigh it up. 2k debt for a degree you will always have? ... Even if you dont choose to work in that field but hey, due to bad times you may end up relying on it? ... Whats the smart move here

The_Conductor

2k in debt?
I'm sorry OP- I actually laughed when I heard that.
I graduated in 1997 from UCD, and I had accumulated debts of 18k.
I travelled extensively as a student, and also incurred debts as a result of this- but I also took crap jobs in the middle of no-where to fund myself- such as weeding vegetables in Denmark, grunt work in numerous garden centres in the Netherlands and Germany, alongside some more glamarous marketing work in Switzerland and Austria......

2k of debt is a pittance on the scale of things- but you have to be realistic also, just because you have a degree in engineering (or whatever)- does not entitle you to a job in engineering these days. Hell- when I graduated, I discovered that my knowledge of French and German, which was a hobby (my undergrad degree was in Forestry)- was the only way I could get a job- in a callcentre doing soul destroying work......

2k of debt is nothing.

Oh my God, OP. Cry me a river. You're seriously complaining that you're 2K in debt and can't go travelling? I'd love to be in your position. I'm 16K in debt from having to live in Dublin for my undergrad degree and I probably won't have it paid off until I'm well into my thirties at least. Most British students are in the same position. I had to suck it up and deal with it. I have managed to do an MA in London (fully funded scholarship because of good undergrad results) and work abroad but I've had to be careful about it, finding secure jobs before leaving and doing jobs I'm not all that mad about. I would have bloody loved to go travelling in Asia or South America (wouldn't we all?) but I just can't afford it.

Sorry, but I just have no sympathy at all for someone who borrowed money to go travelling and is now complaining they can't afford to go travelling again! I think you need to come back to reality asap. You go on about not 'wanting' to do this or that, well that is life! I don't know why you seem to think you deserve to have everything you want. You could borrow more money and have it hanging over you or you could try to get a job in Ireland (or somewhere else) and pay off your debts and save. Like most people in the world do. If you're a bit older than you imagined when you do get to head off, well again, that's life. If I were you, I'd be thanking my lucky stars that 2K of debt was all I had, after finishing a degree at 24.

muboop1

Dude,

You really really need a reality check of some sort...

Firstly, 2k, its just over a months wages if you work full time.

I know you want to travel, don't we all?

In this economy there is no certainty of a job when you return, would it not be more prudent to work off your current debt, then save up for a while then travel?

I'm a student to btw, and I have much larger (much much much larger) debt. I also want to go traveling. I will work for a few months, pay off most of existing loan and save up a tad then go. Is there some urgency that you have to go straight away?

Thats the nice answer... now the hard bit..

It's a recession mate, times are hard. Stop self pitying and get active. It's christmass, get a christmas job and you will easily clear most of that debt. Don't go looking for sympathy btw...

Do you have any clue how lucky you are???

Half the people on this website are probably struggling with loans for hundreds of thousands...

Get a job.. work it off... stop moaning/whining/self-pitying

gossipgal08

8K in debt and half way through a degree in Construction. Where do u want to travel to? Could you get a job there in your area? Really op I have to say you are a bit naive. U have had several nice trips but its time to accept that is over

SparkyTech

Hi OP,

Im not trying to be harsh but to be honest with you I think your perception of where the land lies is a little distorted!

To be honest its not like you were coerced into traveling or having all those nice holidays. Be thankful you had those experiences, still have a job and can still have an education. Everyone has to budget, its just a fact of life. (Im not saint by the way, still end up about 50 in the red at end of the month!) Im in college, earn a meager income, and still manage to save/spend appropriately. Ive managed to go on three short holiday trips in the past year by snapping up cheap flight/hostel deals and being frugal and savvy, not by taking on loans or massive overdrafts. You can either save or borrow, but if you borrow you know what you are getting yourself into in terms of repayments because you sign a legally binding contract.

Student's aren't meant to be rich or living an amorous lifestyle. You have the rest of your working carearr to have some serious cash to spend on yourself. Enjoy the fact that you only have 2k worth of debt, there are some folks out there who are bieng harassed by debt collecters/banks etc and are in far more dire straights then you. In reality its not that much of a burden, you can pay it back in a year, even on a low income, if you are willing to live without some luxuries for a while.

Practical advice: Sit down with your debts/bills/income and work out a budget. Stick to it. Contact MABS if you need help with making one. And only take out another loan for a holiday or whatnot when you can afford it, not because you want it.

Best of luck

LegacyUser

Thanks guys for replies, some solid advice in some posts. I sort of messed up my OP and didn't explain my exact debt situation. I am actually currently 4k in debt but will be more around 2k in debt come summer. I am also hoping to go to Canada on a year visa but not to travel in the back backer sense or anything. I plan to live in a city and work for the entire year with the hope of getting to stay on longer then through work when my visa expires. I will hopefully be using my degree to try and get me in to a job. So while I am looking to get out of Ireland asap, it is to work and not to go lying on beaches or trekking or anything.

Anyway while I mentioned that I felt I was 'against the clock' I guess this was a bad way of putting it. Yes I know I am still young and I have to look at the bigger picture i.e, the long term, but I was just a little concerned with how long it might take to pay off 2k to the banks and save another 2k to go, all the while trying to pay rent and live in Dublin. My degree here is pretty much useless to me so retail 9-5 is my best bet, or maybe a bar. I have worked full time in retail in the past and was making €1450 per month so when you factor in rent in Dublin, and cost of living, this is not a huge amount.

I would love to work here and get debt free before going abroad but my concern was that it might be an option to just go and pay what I can from abroad where job possibilities will be better. The main reason I was thinking of this is because I have friends who did the same thing when they left college, however they landed very good jobs in America so paying back their loans was not too difficult. I'd rather get as debt free as possible before going away personally as who wants to carry more debt with them when they leave the country? Was just thinking that it might take a long time here for me to accumulate 4k and yes since I am graduating college a little later than most people, my age does concern me a bit as I am not exactly 21.

Anyway considering what some people graduate college with, yes this is very small potatoes. I'll just have to wait until I am finished college and hopefully I can find some sort of job here so I can get the head down for a few months and save hard. Oh and yes I do have a xmas job which pays €81 per week so while I am definitely grateful to have gotten one, it isn't exactly gonna clear my debts. ; )

Cheers

Cheers.

tenchi-fan

Something tells me even if you were clear of debt you'd just take out a loan to travel to canada, find out there are few jobs for recent graduates, and just get yourself in debt all over again.

You should look into a programme like the go4less.ie visa. I don't know if it's any good or how much it will all cost, but you are guaranteed a job. That means you will be earning from day 1 and you don't need to worry about debt as you will be earning.

G86

I graduated with 13k of debt, which I'll be paying off for another 4 years til I'm 28.

4k is nothing,trust me. If you take a year to work full-time you'll have a fair whack of it paid off. That should be your main priority right now to be honest, not travelling.