Thursday, August 11, 2011

Is it a good idea to go further into debt for student loans if the degree results in a high salary?

A friend's husband owes around $150K in student loan debt for chiropractic school. Unfortunately, becoming a chiropractor has not been lucrative. He often makes only $1K a month! On top of that, they jointly owe around $30K in credit card debt, have a home that is more expensive than they can really afford, and 2 car loans, among other things. My friend has recently landed a decently paying job, yet now her husband wants to uproot them so that he can get a degree in Radiology. This is a 3 year program, plus a residency, so, in other words, LOTS MORE DEBT. Plus, there would be the cost of moving, etc. Their rational is that the $400K salary of a radiologist would make this a wise move. I disagree. I think they should pay down their debt, and if that means husband taking a job that is "beneath" him, i.e. becoming a nurse, in order for them to pay down debt, so be it. Am I wrong? Is their grand idea a good one? I don't want to see this friend live a life of misery. I should add that they have had SIGNIFICANT marital discord in the past year, and divorce papers have even been filed (but not followed through with). Thanks. And p.s. don't tell me it's none of my business. She has asked for my opinion.

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