How do we rationalize these opt school loans?

[abs1]

Heres the thing. I am about to sign my first award letter for school. Ill be going to a private school and be taking out over $30,000 a year. So, how do I rationalize taking out over $120,000(+ interest), when Ill be lucky to get a job at $75,000 when I get out? And my lifetime peak will be in the low $100,000's..again, if im lucky.

Now, dont get me wrong, im not in this for the $$. I hope you believe this, cause its true. But im not in this to get completely broke either? I want to go to opt school and not med school or anything else, but how do I rationalize these loans from a financial standpoint (Ive already told myself "this is what you want to do" etc..)

On paper this math equation just doesnt make any logical sense?? Any insights? Again, Im looking for financial advice. I already know what I want to do, Im just trying to figure out how to do it RIGHT financially. If youre just gonna tell me I should go to med school instead, then Ill ignore you. And if you tell me I am thinking too much about the $$, then Ill also ignore you. Im just not a financial master, and Im trying to think of a way to beat these loans!! Any advice???

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[cpw]

I honestly don't know what you tell you abs1. I'm going to a state school that costs significantly less. (although I'm probably still looking at at least 70k in loans by the end). I'd like to see a study on how many private school optoms go commercial vs. state school optoms. I have a hunch the ppl that go private might end up being more likely to go commercial to pay off loans. (not that that's necessarily a bad thing)

my only real advice would be.. marry well (just kidding) Seriously, get some financial books. read as much as you can on loans, debt, investing, etc. I'm sure what you're going to make and be happy with in the long run is worth it (but, you already knew that) I wish I had the answer.
Good luck! And let me know what you think of.. I'm sure there are MANY other opt students out there facing your same dilemma. (and the reason I am NOT attending SCCO even though it's an excellent program)

 

[mpp]

$120,000 may seem like a huge sum of money, but people borrow that kind of money all the time. Imagine that if you do not go to optometry school perhaps you can get a job paying $40,000 per year. The difference between the starting salary as an optometrist (lets estimate that at $70,000) and what you would make without going to optometry school is $30,000 per year. Therefore, if you live the same style of life you would lead without going to optometry school, you will earn that $120,000 back in four years (4 x $30,000 = $120,000). Of course there is taxes and interest and all that other stuff to take into consideration. But think of the $120,000 as a mortage on yourself. You are just investing in your future and a better life sometime many years from now. People borrow $120,000 to buy a house every day. After paying all that money back with intrest they just have a roof and four walls. You have a profession in which you will assist thousands of people for the rest of your life. $120,000 is nothing in the grand scheme of things when you are spending it on a life-altering education. Good luck!

(You don't know how badly I wanted to tell you "not to worry about the money" in that paragraph above but you told me not to)

Hope this helps.

 

[abs1]

Thanks to both of you for your help. That award letter just knocked me off my feet, ya know? I know you are both right that many many people take out this kind of $$. I guess if youre not willing to take out the loans, you cant do what you want?

I know Ill be alright and I definitely know that once school starts I wont have any time to worry about loans!

mpp, I really appreciate your moral support (and you too cpw!). You put it in pretty good perspective for me! THANKS!