[Anonymous]

Not 100% sure this topic is right for this forum – but let me lay it out.

As aspiring, or already CPAs, we are required to get an education. Many of us even have more than 4 years, whether due to career changes or state mandated minimum education requirements to become licensed. Based on this, as well as how expensive an education is nowadays, it is a good bet that most of you, like me, have a negative net worth due to a large amount of debt.

Although partly myth – but mostly true in my experience – accountants are conservative, goal-oriented and can be frugal when they set their minds to it.

So, how did, or do, you deal with your student loans?

I am around two years out of school with around student loan debt in the $30’s. I am on a long payment plan (I think it is 25 years – I should know this!) and have a minimum payment of around 240/month – although I pay closer to $400/month. I recently moved to a nicer area closer to where I work (much more expensive), and purchased a really nice La-Z-Boy couch and am thinking of getting a big screen TV. BUT, I’ve started to feel guilty. Am I being irresponsible? Should I be living more frugally and try to triple my payments?

If I was smart, I’d live in a less convenient area and with roommates (likely chopping my rent in half but also adding to my commute). I’d stop buying shit that I don’t need (my little tv that I bought when I was 14 still works great – only 1 trip a year out of town to see my family would suffice). If I were smart, I’d live super frugally for the next 10 years of my life and put any salary increases towards my loan balance. But then again, I want to live, am easily able to pay all of my bills and save a little each month, and tend to think of student loan debt as good debt (vs. credit card debt, which I pay off completely every month). So although I do feel a little guilty, I’m not convinced I’m doing things wrong. Am I?

I am also curious on how you managed your debt after college.

[osoderquist]

There's a French proverb saying “les enfants de chausseur sont les plus mal chausses” (The shoe-makers children wears the worst shoes), why I wouldn't put extra pressure on myself just because I'm an accountant. Once home you can kick off your shiny shoes, take off your suite and tie and slip into your worn-out slippers, jeans and t-shirt and just feel good about it. One thing is your job, the other thing is what you enjoy outside of it. Keep the TV, the lazy-boy and your own appartment if you enjoy it, and there's no reason of feeling guilty about it, but if you do sacrifice your perks and pay back your loans asap, because if you feel guilt you will not enjoy the consumption, so why do it?

[Anonymous]

Vlakmir: You're my hero.

[san4596]

Vlakmir – Thank you! I worked 30-35hrs a week in college and picked up extra small jobs during breaks if possible. Still, a 2 week break here and there did not amount to much, since I took 2 classes each summer session. Either way, my gross income was about $15K in a good year. Plus, I believe minimum wage was much less 10+ years ago. Also, what is this fun you speak of during college? LOL!!!

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[John Tucker]

It's great to hear that a lot of folks had a similar story that I had when I was “coming up” lol. Despite the rhetoric in the media, it's why I love this country. My story would NOT have been the same anywhere else where a guy could come from strict poverty to where he is right now. Only in America. If you take the available tools, resources and opportunities available to you and manage them properly, you can climb the ladder and your children will never have to start from rock bottom like you did.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[mgnyc]

In my journey from twenty something to thirty something one thing I learned is frugality is really hard. My wife ( a fashion designer ) turned me on to the idea of … make more money. I have a full time job, I freelance and am an active landlord. Doing these things has helped me pay off more debts AND not sacrifice things much easier than considering giving up cable so I can pay off a student loan a little faster.

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[HeartsMimiCPA]

I saw a news story on facebook today of a girl paying her way through UMD dancing twice a month at Scores in NYC. Says she makes 180k a year. Clearly I went about this all wrong!

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[mla1169]

I have a boatload of debt, all completely by choice. Yes I was a single mom while I was working my way through college but there were certainly other routes (could have taken 1 class a semester and paid as I go, would still be in school now but debt free), could have searched harder for grants and scholarships with the little time I had, could have sought employment that paid my tuition. I regret the debt now, but it was my choice period, and I am taking care of it.

In my opinion the only debt that is not by choice is medical emergencies.

That said, you can't change the past but sure as heck can change the present and future!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

@HeartsMimiCPA- She was stripping 4 nights a week and making $180k. She is pretty smart about it; she knows it's not a sustainable career because youth fades.

I worked full time waiting tables making around $35k+ a year. I graduated with a 3.5 GPA, but my accounting courses suffered. Now, I'm paying the price because I was never able to make it into the Big 4. If I could have a do over I'd have just gone to a a public university and focused on school and taken on manageable debt.

@ OP- In regards to paying off debt, I'm the type that does not like owing people money. I pay of my credit card bill every month. My cars are paid for in full and I live within my means. So, I would suggest that from doing small things like gradually eating out less, thinking twice before buying another pair of shoes you don't need, and then putting that money aside to pay more toward the principal you'll be in good shape.

[Vlakmir]

John Tucker—-

That is EXACTLY RIGHT!!!

I am so thankful America has such opportunities for young people now-a-days. And whenever I hear my friends tell me about how they don't have money for school, I know in reality they just don't have the motivation to do the work because the resources truly are available to borrow and invest in your own future. I did it. (50% of my graduating high school class of 450 -applied- for college. Curious how many finished…)

REG - 92
AUD - 90
BEC - 82
FAR - 82
BISK Review Materials
DONE! /Happydance

[Anonymous]

@StudyMonk – No I did not co-sign for him. We did not mention financing because I knew he was going to pay cash. The salesman didn't realize that he was paying cash. I was strictly there to haggle with the salesman. My daddy taught me well! The interest rate they proposed was 4.5%. I don't have a clue if that is high, low or whatever because we don't have any debt other than my student loans. A mortgage is NEVER going to happen. We paid cash for our house and will NEVER use is as collateral on any loan for any reason. Right now we are saving money to remodel the building we bought from his mother that we are turning into an office for me. The roof is first and I have 1/2 of the money saved to pay for that, roughly $8K sitting in an Edward Jones acct. When the office is finished it will be paid for free and clear.

[iddyrashy]

I came to the state when I was very young, I grew up poor and to come to this country was an opportunity that I will never quit thanking God. I didn't know anything concern money. However, my mother told me since I was young son the moment you sign for a debt you become a slave to the debt owner. That simple sentence guide me my entire life, I went to college never borrow a dime. I work as a forklift driver, CNA and all in between. I took 18hrs a semester and full loaded on the summer, I graduated in 3 years with 0 debt. I am still using same approach up to this moment, I am building the 3000 sqrft house now and it's 100% my cash.

Every now and then i mentor young blood at my university and my number one advise is stay away from debt.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[zieba]

I would love to have read everything but I have to go to MCQ's… which is what most of you should be doing as well!

A couple of non-sequiturs which may, or may not be applicable (at all, and are not directed at anyone in particular):

I am uneasy about the idea of owing someone money. It's probably a mentality seared into my subconsciousness while living as an immigrant coming up in the states. I came off the proverbial “boat” in 1989 with a piece of torn off newspaper that said “mej ai go to tfe bafroom” (phonetics). Work hard, borrow if you must, and work twice as hard to repay debts twice as fast. I will use leverage if I have to, but I will agonize over it for quite some time.

One guy said living frugally is different than living cheaply, and this is a great observation! I get a borderline rush out of buying $250 cycling shorts for twenty cents on the dollar, and $400 sunglasses for less than the cost of the crap at the mall. Granted, it's slowly turning into a perverse game of turning water into wine, but it allows me to enjoy a certain level of conspicuous consumption without decimating my account balances. You'd be surprised at the nice things one can have if one is just smart about acquiring them. I cringe when I see people going to the mall, coming out with bags of crap they bought at retail, swiping those credit cards.. ssssssswipe!

I put everything on my CC. I pay my bill in entirety every month and pocket $100+ in rewards points, hotel nights, etc, etc. Free money as far as I'm concerned. If you can put your student debt on that as well and get 1-3% back over the life of the loan, it adds up.

I went to a state school. I worked in between classes. I slept on the subway standing up, and when I wasn't sleeping standing up, I was reading recording agreements (standing two hours each way). I would get home at 11PM walk home from the train and then do it all over again tomorrow morning. I worked myself to the bone, graduated debt free and now have a bunch of platinum records on my wall. SOHK.

It appears that some of you are equating higher GPA with “the job” and I'm just not sure that can be extrapolated to the group as a whole. I feel like many of the more recent interview techniques go beyond the GPA and are geared towards pulling bright and productive people who may be a great fit for the organization. Again, I'm not sure if this pool just happens to comprise of individuals with 3.5+ GPA's.

I think a big portion of the relationship you have with your finances simply depends on the type your parents had with theirs. Behavior modification after a certain age is extremely difficult. I'm actually sitting on a pile of money right now and am feeling guilty about being able to deploy my assets because of experiences I had years ago.

There is always someone willing to do your job for less. Sadly, this is also true for to the guy in PA with a CPA, CMA, MBA whose boss is paying him bird wage. It's just the nature of the machine.

MCQ's await…

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[Study Monk]

No one has really mentioned that some locations of the country are easier to work through college due to the cost of living. For example I am in the Bay Area so it would be a little harder for me to work my way though college compared with someone living in Indiana. It's possible that many people from middle america have a different overall experience with paying for college than the costal people. Being able to pay for a house in cash is unheard of out here in the west. It would take most people twenty years to save that kind money. It is ironic that it is possible that many people who went to state colleges living in states with a very low cost of living are lecturing people who lived in New York or went to Ivy League colleges. Its comparing apples to oranges as the saying goes. I will not argue that the people in the cheaper states might be on to something..

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[zieba]

Monk, my intention was not to come across as lecturing. In the unlikely event that your comment was somehow directed at me, I would like to point out that I went to school on Madison Avenue and 25th street in New York City. Home of $12 salads and $100 monthly train passes. The only thing I will concede is that buying your first home all cash is a little difficult, and there's no such thing as $800 rent unless you want to live in a 250sq/ft basement with no utility hookups.

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[yourmomsaCPA]

Study Monk – good point.

Really, the bottom line is – if you looked at 100 people with student debt, 90 of them could have done it on less. Period. Sure, 10 of them utilized the loans down to the penny but 90 didn't.

I struggle now with how to teach my own children how to be as money/debt conscience without growing up in the same situation. Nothing will ever teach like actually living far below the poverty line (AND a mom that was too proud for any assistance). Together in 2013, my husband and I made a combined $267,000 (it's anonymous on here, guys). We still live “frugally” relatively speaking. I can't remember the last time I bought my 2 kids new close (they're 4 and 5 so people GIVE us clothes just to get them out of their closet), toys outside of a special occasion, etc but it's not the same — especially because I have a stepson (he lives with us 50% of the time) that has another set of parents that are on the other end of the spectrum budget-wise.

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[Author]

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