About to get £55k loan and getting the heebie-jeebies...

SteveyLomas

Thanks for all the support.

I don't have to start paying until three months after graduation, however I have no plan B if I don't get a job. From having a poke round the internet, I think as it is a university and not a bank, there is more understanding about repayment. You can apply for holidays based on unemployment etc. However, this would only be temporary. I almost don't see how there can be a Plan B, other than to work to pay it back.

Living with Ma and Pa - its a real option after university as they live just on the edge of London where a job is likely to be. However, what about my poor parents! Having their 30 year old son hunker down in his old room with the Transformer duvet cover - just when they thought they could get a bit of peace and quiet in their retirement. Not sure I could do it to them on a permanent basis for three years!

Other than the mechanics of repayment, I wonder what the psychological effect will be like. Reading the posts on this board, being in debt looks real tough on people's emotions. It can be liberating having that feeling that I could quit my job tomorrow and do anything I liked as I don't owe anything to anyone and I'm sure a lot of the posters on here have that as their dream. Do I want to throw that freedom away.

Of course I fully understand it is my decision, but I appreciate unthought of angles and advice and experience that can be thrown my way. Thanks everyone so far!

count_rostov

SteveyLomas wrote: »

Thanks for all the support.
Living with Ma and Pa - its a real option after university as they live just on the edge of London where a job is likely to be. However, what about my poor parents! Having their 30 year old son hunker down in his old room with the Transformer duvet cover - just when they thought they could get a bit of peace and quiet in their retirement. Not sure I could do it to them on a permanent basis for three years!

I moved back with mine for a year when my fiance and I were saving for a house and then doing initial renovation and it was great! I was 26 and hadn't lived with them really since I was a stroppy teenager as I started boarding school at 15 and then went to university. It was so nice hanging out with them and helping each other out. I *think* they liked having me around too but of course they couldn't say otherwise!

poppyg_2

Steve, I really am not sure what to advise, do you dislike your current job? Obviously you're earning a good wage and have money in the bank you could put down now if you wanted to for a deposit on a house but then if that's going to mean staying in a career you don't want and you feel that studying for the MBA is the real chance you have of making that career move you dream of then maybe you should risk it

Is there any chance do you think of moving to new career with your current degree or is it the case that you really need to do the MBA in order to get a decent/job wage? I just wonder if you could get a lower level job with your degree in the industry you want to move into and then maybe ask about the part time MBA and chances of career progression, sponsorship etc? A company might be glad to have a new employee who wants to go far and advance themselves

Maybe you should try writing everything down and weighing up the pros and cons (oh hang on I guess that could be this thread!!), but you know a real 'worst case scenario' v 'best case scenario' and see what sort of thoughts that gives you

SteveyLomas

Right I've had a bit more time for contemplation - did a SOA, which I'll post after this one and I think it is a goer. I've had a good think and I shouldn't worry too much about average salaries coming out the other side as you are never average. However I do have faith from everything I have learnt of the university, that I will come out with some first class business knowledge in my head and whilst there may be some financial term in the short and even the medium term and as Keynes said, in the long term we are all dead - the financials of a decision shouldn't always be the driver in personal decisions.

I also think looking at the SOA below, that my spending is pretty light and my headline salary doesn't really reflect a pure rate because of the perks I get with my job (see posting), so as my employer has initmated I should be able to return to my job if I want (have?) to. Things should be good.

Thanks for everyone's advice on here - helped me have a good think, though perhaps you could pick up that I was always going to go! Now I just have to remember not to worry about the money for the next couple of years...

hypno06

Risk/Reward.......what would you advise a client to do?

What does your gut feeling tell you - is it worth that punt?

You will *know* if is right for you to do.

For what its worth, I started my MBA with Durham........never finished it, and still wish I had carried on. My circumstances are different because I have kids, so the expense of the MBA had to go. However, I have not found it a hinderance in my career at all, and depending on what location you want to be in, some people think that it is more important to have the continued real work experience than the additional qualification.

Tricky one, I know. Good luck!

SteveyLomas

Right SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3600

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 400

Assets
Cash.................................... 23521
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 23521

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Student loan...................4000......0.........4.8
Employer loan..................1000......0.........0
Total unsecured debts..........5000......0.........-

Monthly Budget Summary
Total monthly income.................... 3,600
Expenses (including secured debts)....... 400
Available for debt repayments........... 3,200
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 3,200

Personal Balance Sheet Summary
Total assets (things you own)........... 23,521
Total Secured debt...................... -0
Total Unsecured debt.................... -5,000
Personal net worth...................... 18,521

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

SteveyLomas

You'll note that is pretty empty as the good old employer pays for nearly everything. Now not the worst worst case, but a bad case would be returning to my old job and assuming fairly similar circumstances, which means theoretically I could shift the debt in two years without really changing anything much in my life.

Hypno - what were you planning to do when the MBA was done? Did that change much when you pulled out? Was it part-time? Was that hard?

SteveyLomas

Oh - and student loan and employer loan repayments are taken out my wages before I touch them - thats why there are no repayments

mizmir

Well if you can live at that level in the US then you'll have no problem! But presumably realistically there'll be rent, perhaps car (everyone drives there!) - so it won't be quite like this. But it sounds like you've thought it through and are prepared so go for it. And hope you have a fantastic time!

hypno06

To be honest, as the only woman working in our place, I was desperately trying to prove that I was as good as the men!!

It made little difference - my superb knowledge, experience and ability to get things done has done that job for me.......still the only woman, but no longer fighting for my place!!

I just don't like starting things and not finishing........(unless it is housework!)