[Tono23]

Hello Fellow Peers:

I am an entry-level accountant with a NPO. My student loan debt (Approx 70k) has placed my future hostage i.e. cannot move out the house, living paycheck to paycheck, hence; cannot do much with my salary (37k). That said, I am questioning if accounting was the right profession. Are things going to get better if I purse the CPA and is it worth the time and effort? Would the experience I obtain while being a npo accountant pay off in the corporate world?

[W_HAMILTON]

First off, have you looked into the income-based repayment options for your student loan debt?

REG - 93 (7/30/13)
BEC - 90 (8/19/13)
AUD - 98 (8/31/13)
FAR - 84 (10/19/13)

[W_HAMILTON]

First off, have you looked into the income-based repayment options for your student loan debt?

REG - 93 (7/30/13)
BEC - 90 (8/19/13)
AUD - 98 (8/31/13)
FAR - 84 (10/19/13)

[stoleway]

wow 70k just on student loan. I presume you went to Harvard? Youre currently at the entry level so dont worry about it, things will get better. Build up the experience for a better salary in the future, thats how it works.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

wow 70k just on student loan. I presume you went to Harvard? Youre currently at the entry level so dont worry about it, things will get better. Build up the experience for a better salary in the future, thats how it works.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Tono23]

W_Hamilton I have applied for IBRP under the federal government, but I have a couple of private loans that do not allow such and option. Forbearance is not an option since it will accrue interest tremendously.

Stoleaway, I did not go to Harvard. I attended a private catholic university based in Chicago, IL. Tuition was 30k a year. Unfortunately, I did not have enough guidance about choosing the proper institution. For that amount of money, I should have attended my state university where at least I would have enjoyed my time!

Thank you both for your input.

[Tono23]

W_Hamilton I have applied for IBRP under the federal government, but I have a couple of private loans that do not allow such and option. Forbearance is not an option since it will accrue interest tremendously.

Stoleaway, I did not go to Harvard. I attended a private catholic university based in Chicago, IL. Tuition was 30k a year. Unfortunately, I did not have enough guidance about choosing the proper institution. For that amount of money, I should have attended my state university where at least I would have enjoyed my time!

Thank you both for your input.

[Liss, Master of Coin]

@stoleway, not necessarily.

My sister went to one of the best school's in our State, for her Bachelor's in Business – $100k. It's a good school, but definitely not Harvard. I just checked the website, apparently it's a public school too. She graduated last year.

Whenever I feel bad about my student loan debt, I just think about what she's going through at it cheers me up – ha!

@Tono23, do you have SallieMae? If so, I'm going to repost something I've posted before. I strongly suggest to anyone that has SallieMae to sign up for their “Upromise” rewards.

It's kind of like ebates and airline rewards cards; if you buy things by going through the Upromise website, you get % back, but instead of them sending you money or earning miles it's applied to your SallieMae account.

The % varies by retailer, so not all are the same.

You don't have sign up for their credit card either but if you do you earn cash back quicker.

For example, buying from Walmart.com you get 1% back by them appling it to your student loan account. If you buy from Target.com, you get 5%. If you buy from Walmart using your Upromise CC, then you get 6% back ( 1% through the vender + 5% by using the CC). For Target.com, you'd get 10% back.

Sometimes it's not much, but over the past 5 years I've got over $1,000 back, which I figure has helped me pay down my student loan interest. Every little bit helps.

CPA (MA, Non-Reporting)

The difference in winning & losing is most often, not quitting - Walt Disney

B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.

Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.

[Liss, Master of Coin]

@stoleway, not necessarily.

My sister went to one of the best school's in our State, for her Bachelor's in Business – $100k. It's a good school, but definitely not Harvard. I just checked the website, apparently it's a public school too. She graduated last year.

Whenever I feel bad about my student loan debt, I just think about what she's going through at it cheers me up – ha!

@Tono23, do you have SallieMae? If so, I'm going to repost something I've posted before. I strongly suggest to anyone that has SallieMae to sign up for their “Upromise” rewards.

It's kind of like ebates and airline rewards cards; if you buy things by going through the Upromise website, you get % back, but instead of them sending you money or earning miles it's applied to your SallieMae account.

The % varies by retailer, so not all are the same.

You don't have sign up for their credit card either but if you do you earn cash back quicker.

For example, buying from Walmart.com you get 1% back by them appling it to your student loan account. If you buy from Target.com, you get 5%. If you buy from Walmart using your Upromise CC, then you get 6% back ( 1% through the vender + 5% by using the CC). For Target.com, you'd get 10% back.

Sometimes it's not much, but over the past 5 years I've got over $1,000 back, which I figure has helped me pay down my student loan interest. Every little bit helps.

CPA (MA, Non-Reporting)

The difference in winning & losing is most often, not quitting - Walt Disney

B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.

Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.

[StephAV]

You went to college for accounting and incurred $70k in student loans… What profession do you think would be better? It seems to me that would kind of be a waste of $70k though…

I have heard of accountants that did bar tending or some other job in the evenings and off time to earn some extra cash. If you are young and single, maybe knock out the exam first, then look for a side gig. If you can get on IBR for the Government loans maybe you can try to focus on paying down the private loans for a while?? I'd stick it out in accounting though hard work will pay off eventually.

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[StephAV]

You went to college for accounting and incurred $70k in student loans… What profession do you think would be better? It seems to me that would kind of be a waste of $70k though…

I have heard of accountants that did bar tending or some other job in the evenings and off time to earn some extra cash. If you are young and single, maybe knock out the exam first, then look for a side gig. If you can get on IBR for the Government loans maybe you can try to focus on paying down the private loans for a while?? I'd stick it out in accounting though hard work will pay off eventually.

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[W_HAMILTON]

StephAV is right about possibly getting on income-based repayment plan for the government loans and then using more resources to pay off the private loans. Also, I think (I could be wrong…) that repayment of student loans is capped at 25 years? So, if you are using an IBR plan, it would be like having a mini-mortgage, but at least it would be more manageable. Also, when you start making more money, you can use the extra funds to pay down the loans quicker than an income-based repayment plan or even a normal repayment plan.

I tried the normal payments for my student loans for awhile (it was about $700/month……) and then switched to income-based repayment. I figure if my salary remains consistent, the payments are manageable, and if my salary increases a lot, I can always start using any extra funds I have to pay down the balance faster.

These sorts of plan might be options for you, especially if you are just barely scraping by.

REG - 93 (7/30/13)
BEC - 90 (8/19/13)
AUD - 98 (8/31/13)
FAR - 84 (10/19/13)

[W_HAMILTON]

StephAV is right about possibly getting on income-based repayment plan for the government loans and then using more resources to pay off the private loans. Also, I think (I could be wrong…) that repayment of student loans is capped at 25 years? So, if you are using an IBR plan, it would be like having a mini-mortgage, but at least it would be more manageable. Also, when you start making more money, you can use the extra funds to pay down the loans quicker than an income-based repayment plan or even a normal repayment plan.

I tried the normal payments for my student loans for awhile (it was about $700/month……) and then switched to income-based repayment. I figure if my salary remains consistent, the payments are manageable, and if my salary increases a lot, I can always start using any extra funds I have to pay down the balance faster.

These sorts of plan might be options for you, especially if you are just barely scraping by.

REG - 93 (7/30/13)
BEC - 90 (8/19/13)
AUD - 98 (8/31/13)
FAR - 84 (10/19/13)

[acamp]

I'd pour absolutely every penny into that student loan. Sell everything, have a car that is worth more than $5K and/or has payments, sell it and get a beater–use proceeds or savings to pay more on the loan. Pack a lunch for work, saves a couple hundred a month over dining out. You live with your parents, so I assume, unless you guys just really really really really like living with each other that you are saving some money being there, I wouldn't be looking to apply for a program that will draw out your payments, I'd try to find ways to sqeeze every penny out of my budget to pay down the loan faster… speaking of, do you have a written budget? Make one, helps you understand where your money is really going.

If you're making $37K, you're clearing like $2K per month? I have no idea if you're parents are charging you rent or whatnot (if they are, maybe they'd offer a reduction if its in the name of paying down your debt faster), but figure out the minimum you can live on and start sending every penny to the loan. Might take a couple years, but if you dont get extremely proactive, its not going anywhere!

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

I'd pour absolutely every penny into that student loan. Sell everything, have a car that is worth more than $5K and/or has payments, sell it and get a beater–use proceeds or savings to pay more on the loan. Pack a lunch for work, saves a couple hundred a month over dining out. You live with your parents, so I assume, unless you guys just really really really really like living with each other that you are saving some money being there, I wouldn't be looking to apply for a program that will draw out your payments, I'd try to find ways to sqeeze every penny out of my budget to pay down the loan faster… speaking of, do you have a written budget? Make one, helps you understand where your money is really going.

If you're making $37K, you're clearing like $2K per month? I have no idea if you're parents are charging you rent or whatnot (if they are, maybe they'd offer a reduction if its in the name of paying down your debt faster), but figure out the minimum you can live on and start sending every penny to the loan. Might take a couple years, but if you dont get extremely proactive, its not going anywhere!

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[tough_kitty]

Wow, $70K in student loans! CRAZY! My loan is “only” $38K….I AM on the income-based payments and after 1 year of making payments, my total balance is STILL $38K!!!!!! So, I wouldn't recommend the income-based payments plan….my interest is 6.8%! But I am a state employee, so hopefully, if I have anything left after 120 payments, the reminder will be forgiven…that's the only thing keeping me with the state – 9 more years to go….and about $32K so it will save me $6K plus whatever additional interest…of course this is a VERY rough estimate and I really would love to pay my loan off sooner than later….but I also have a mortgage payment so gotta get a better salary first!

@Tono23: Pursuing a CPA license is worth the time and effort. You might get a better pay position AND you never know what is going to happen in 10-20 years. A few of my friends got laid off because of the economy, but despite of their years of experience they were not able to find new jobs because their either didn't have a degree in accounting or they didn't have a CPA license. In my personal opinion, getting an accounting degree but not getting the CPA license is a waste of money……

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[Author]

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