[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.

[Study Monk]

@ zieba I actually didn't read your post, because it was to long 😛 I was more talking about the theme of this post. Some of the people who worked through college and didn't take student loans have a tone that has a hint of “snobbery” in it. There's a sub class of people who work very hard in life who develop a self centered ego. These same people can find an imaginary divide in the very same class that they belong. Accountants telling other accountants the way they became accountants is not as good as the way they did lol…..it's ridiculous.

Paying cash for everything is great and working through college is admirable. However I also find the person who works less and spends extra time with his family admirable. I personally would pay 6% interest to do that. I went to UCSC one of the most beautiful colleges in the country. I didn't work and ended up having more time to roam the woods and go to moon dances. I would pay 6% interest to do that. Some of the same people who preach on the evils of loan interest spend 30% more than they need to on clothes, cars, and other lifestyle choices to flaunt their new status. Quite frankly, I can care less how someone pays for school or how they dress themselves. I tend to get annoyed when people seek praise for their particular lifestyle choices or what status they currently have. If a person wants to be an elitist they should of choose finance instead of accounting. We all have our own priorities.

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"

[Anonymous]

“Accountants telling other accountants the way they became accountants is not as good as the way they did lol…..it's ridiculous.”

Couldn't agree with that more.

[golfball7773]

^bump because this was a fun discussion 🙂

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[ScarletKnightCPA]

I worked through school, (25 hrs a week), took more than full load to save money (flat fee after 12 credits), got a lot of financial aid (poor background), went to an affordable state school and I still had to go into debt to finish school. I was basically walking around in rags and with clothes I been wearing for past 5 years in college and had 0 luxury expenses. I didn't even have medical insurance.

Having gone through my experience, I would recommend young people to NOT work through school and instead dedicate that time towards studying…. of course only do this if you really are going to study.

Unless you are doing community college you will not make enough to pay for living expenses + college unless you have a scholarship paying most the cost.

You cannot say ‘oh well why don't you get a scholarship then' because by the very nature of scholarship, it cannot be available for everyone. If everyone worked towards a scholarship, most still wouldn't be able to get it because there is a limited amount of funds available.

Sure you can go part time and finish it in 8 years instead of 4, but then you are forfeiting a lot of recruiting opportunities that are available to the standard student on a normal timeline.

Debt is a tool that that is very helpful if used wisely. You sacrifice future increased earnings to be able to have some sort of base standard of living today. Of course you should also invest in a major that will most likely provide you with those future increased earnings.

Limit debt and use it to make wise investments. $80,000 debt for a job that you will be making $35,000 is probably not a wise investment (unless there is good opportunity for growth).

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[ala72]

I paid for my college degrees in cash but only because my parents, grandparents, and I all contributed to my college fund. I'm the only person in my family to get a Bachelors and then a Masters. However, my fiance's parents are terrible with money but “make too much” so my fiance, who I've been with since we were 15, had to get over $100,000 in student loans. And we both went to a state school. He has worked 32 hours a week since he was 16. Because I paid for school without debt and he did with debt, when we went to get a mortgage for our house, I was denied because I had “no credit”. I was being penalized because if I didn't have the cash to pay for something, I did something crazy and saved up. Apparently being financially responsible is frowned upon. Banks can't make money off of me. So we're using his debt and credit score to get a mortgage. Just a heads up to any young professionals out there. Apparently a little debt is needed (At least enough to create a credit score). Don't make the same mistake I did. Signing off on this thread now before any more drama ensues…

Licensed NH CPA as of July 2015

AUD - 74 (Oct '13), 84 (Jan '14)
FAR - 79 (Feb '14)
REG - 61 (May '13), 81 (Aug '14)
BEC - 79 (Nov '14)

[koz124]

I posted before when this thread was initiated, but I have to make mention of one more thing. Working 40 hours at $5.15 (which was minimum when I was in college) equates to $10,712. That's enough to pay for my tuition only, not lodge, not food, not books, not insurance…not anything else. Plus, while 40 hours is doable (and I was forced into it later) it is not optimal because of class times and the fact that you should be devoting time to studying and learning. Kudos to the people who live debt free, but I'll take my student debt (the only debt other than $5000 left on a mortgage) and beam with pride that I completed my education.

Studying with Wiley Review, Wiley Test Bank, Ninja Audio.
Retakes with Ninja MCQ only...awesome!
Far - 1/28 72, 7/22 79
Aud - 2/28 70, 8/14 83
Bec - 4/10 80
Reg - 5/30 64, 7/2 82

[Sir Study Alot]

This post gives me fond memories…

Passed all 4 exams in 2014!

[Author]

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