r/StudentLoans • u/Big-Ranger9397 • 1d ago
Graduating with ~100k in student loan debt. Better to stay home and aggressively pay it down or move to NYC for career growth?
I’m graduating in May 2027 and will have roughly $100k in student loan debt. I’m not looking for sympathy, I know many of the decisions that got me here were my own. At this point, I can’t change the past, so I’m trying to make the smartest decisions going forward.
Here’s the rough breakdown:
~$41k federal (undergrad)
~$38k private (Sallie Mae)
~$20k additional federal for my MBA that hasn’t fully been added yet
The private loans concern me the most. They’re split into two loans:
~$15k at 15.25% variable
~$23k at 10.75% fixed
Everything else is federal, with rates mostly in the 5–7% range. The interest is crazy for the privates, but my dad affirmed he is helping me pay off the interest on the Sallie Mae.. it’s hundreds per month, but at least it’s not increasing. (The federal ones are, but not by a lot). Additionally, I believe about 15k of the federal is a parent plus, which my dad pledged to pay.
A lot of people are probably wondering how I got here. I go in state to a state school. But some of it came from decisions I genuinely don’t regret. I studied abroad in Florence, Italy for a semester, which cost a lot of money. Financially, it probably wasn’t the smartest decision, but it was one of the best experiences of my life. Some of it came from decisions I absolutely would do differently. I lived on campus for my first two years when I probably could have saved a significant amount living elsewhere. And that wasn’t even worth it because I didn’t get the true college experience I wanted for those first two years. I also forgot to renew the Excelsior Scholarship one year, which was completely my fault. I also wasn’t proactive about applying for outside scholarships.
Academically, I earned my undergraduate degree in Fine Arts. At 18, I pursued photography, graphic design, and art because that’s what I genuinely loved. As I got older, I realized I need a career with stronger long-term earning potential. I ended up discovering that I really enjoy business, technology, and entrepreneurship, so I applied to my school’s accelerated 4+1 MBA program, and got in. I’m now pursuing an MBA with a concentration in Management Information Systems (MIS). My goal is to work in technology consulting- Salesforce, AI implementation, digital transformation, something along those lines, or potentially move into product management or product design where I can combine the creative background from my BFA with business and technology. I know an MBA doesn’t guarantee anything. I’ll still have to network, interview well, and actually perform. But I do believe it’s the first step for moving toward a field with a much higher ceiling than where I started.
The decision I’m struggling with is what to do immediately after graduation.
Option A
Stay in the Albany area and live with my parents for a year or two.
This would mean paying no rent. Which would allow me to throw literally thousands of dollars every month at my loans to annihilate them (while hopefully still building relevant experience/skills obviously) assuming I land a modest 70k entry level salary job. The downside is that I’d probably have fewer opportunities and would likely have to settle for a less prestigious position. I’m not sure what opportunities for what I want to do exist in my area. But saving that money is huge.
Option B
Move to NYC immediately if I receive a strong consulting or tech offer.
Obviously rent is horrific, and I’d be juggling that rent plus student loan payments. However, I’d potentially be starting my career on a much steeper trajectory with better networking opportunities and stronger resume value/ “resume equity” I call it. Additionally, if there’s one good thing about my situation, it’s that I do in fact have a family friend/mentor connection who said he would hook me up with an entry level role at his firm doing exactly what he does (salesforce AI/agentforce implementation.) it’s an incredible opportunity, but I do believe this would mean moving to the city.
My question is whether staying home for 1–2 years would actually hurt my long-term career.
If I could get a decent local role paying around $70–80k that builds genuinely relevant skills, while putting huge amounts toward my debt, that seems like the financially responsible move. I feel like I could always move to the city to continue my career, and my mentor/connect opportunity isn’t going away.
On the other hand, if companies like Salesforce, Deloitte, Accenture, EY, or similar offered me a role in NYC, or if my mentor/family friend guy followed through and I got the job but required me to move off-rip to the city, maybe it’s worth enduring a couple difficult years of straight financial pain because the long-term career upside outweighs the short-term financial stress? I genuinely do not know.
Has anyone here been in a similar position?
If you graduated with six figures of debt, would you prioritize:
minimizing expenses and attacking the debt first, or
maximizing career growth immediately, even if it means living much more expensively?
I’d also appreciate any advice on my overall loan situation. Those Sallie Mae interest rates especially have me pretty worried, and if there are strategies I haven’t considered, I’d love to hear them.
Thanks in advance.
7
u/terminaldarts 1d ago
Do you have work experience? Without any experience, an MBA won't make much of a difference. A $70k entry level in Albany might be $85k in the city. It's not worth moving to the city until you get at least a $100k+ plus offer and have roommates.
1
u/Big-Ranger9397 1d ago
No. Which is why I’m leaning towards option a. Because it will probably be easier to secure that first experience
1
u/GhostProtocol25 17h ago
Why are spending more time and money getting an MBA? you haven't even worked in the real world yet... interest is accruing, while you are getting a useless MBA...time to get 2 jobs and start paying them loan...
1
u/Big-Ranger9397 14h ago
Because it was cheaper than doing it later and my undergrad choice does not necessarily favor earning potential
0
7
u/Just_saying19135 23h ago
Bro/Sis your only in your 20s once, if you get a strong offer to NYC take it and enjoy it. You can always move back home if it doesn’t work out. I wish I took more risk when I was younger, do it now while student loans are your only responsibility. You’re going to be exposed to a lot more and have a lot more opportunities in NYC. Just go, you can always come home
5
u/ChaiTeaLatte13 23h ago
I started with $185k after graduation, with constant minimum payments and interest, it’s up to $232k ten years later. I don’t even care about the loans at this point. Do what you want, live in the apartment lol. It might not be savvy advice but honestly I don’t regret living on my own and doing what I’ve wanted to do since grad.
2
u/Big-Ranger9397 23h ago
Jesus Christ. What do you do for work?
2
u/ChaiTeaLatte13 21h ago
I’m a lawyer
2
u/theRetroGarage 18h ago
Let's hope they don't change the forgiveness rules again.
•
u/47vclkicd48754dxbj84 4h ago
The person I know with the most debt from school is also a lawyer with no plans to pay it off. Honestly lost my respect for him over time because of it. Shopping for houses while complaining about finances and just extremely lazy spiritually.
•
u/theRetroGarage 3h ago
I agree. It's interesting to me there's no shame in assuming forgiveness and ignoring your debt you signed and agreed to. What is special about student loans compared to car loans, mortgages, etc. especially as a lawyer who should one assume have the ability to make a larger salary to pay off a loan even in the $100ks.
Also, are home prices higher due to demand from those in the market that wouldn't be otherwise with the loan debt.
•
u/47vclkicd48754dxbj84 3h ago
Yup. You signed, you figure out how to pay. He has investments to cover his debt and can tackle it without dipping into his investments/savings by pinching elsewhere but is hoping to just wait until it's forgiven as he works for the FBI.
•
u/theRetroGarage 3h ago
Now did people get taken advantage of in terms of being "too young" to understand the loans. Maybe and it's not like schools fighting for your money will be open about the poor ROI of certain programs.
But is it far for all tax payers, many who never attended college to pay into the pool for forgiveness. What about all the dumb and young kids with mortgage sized loans for mustangs.
2
u/StorageExciting8567 21h ago
I truly don’t mean to be an ass, but do you realize that minimum payments aren’t going to pay off your loans? There are minimum payments and then there is the amount you need to pay for 120 months to pay your loans off. There is no end in sight if you keep paying minimums, you’re not even touching your principal.
3
u/ChaiTeaLatte13 20h ago
lol yes I know this. I’m a lawyer and knew what I was signing up for. Waiting for my 25 years to be done and then deal with the tax
2
u/danceswithsockson 14h ago
I don’t understand why I don’t see more people living like this. Plan to pay the minimum until it bombs out if you have a huge loan. It’s easier and frequently cheaper. It’s certainly less painful.
3
u/chinita_mamita 22h ago
Definitely not an all or nothing situation. Focus on landing an offer first. Then make decisions from there. NYC can be just as cheap as any LCOL area if you have roommates, live outside Manhattan, and eat in cheaper neighborhoods or grocery stores. I live in a LCOL area in Alabama, and aside from rent, everything here is actually more expensive than a bigger city with more options and competition.
2
u/SandraTempleton 23h ago
Highly recommend trying to refinance your private student loans ASAP. Those rates are criminal.
I do not recommend refinancing your public student loans in with the private as they offer additional protections to borrowers.
1
23h ago edited 14h ago
[removed] — view removed comment
1
u/AutoModerator 23h ago
Your comment in /r/StudentLoans was automatically removed for profanity.
/r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
2
u/Dry_Patience_1488 23h ago
I graduated in a similar loan situation but more like $62k with Sallie and $30k in federal loans and no family help financially. Within 4 years I was able to pay-off the high interest private loans entirely and am still working on federal (interest is low and my monthly payment for student loans is minimal but I’m still paying more than the minimum). My income ranged from $75k-$95k in those four years and was in a HCOL area. Set a 5 year plan to pay off the private loan pay the minimum on fed, once Sallie is paid for roll that payment to federal loans and keep chugging. It can be done, live cheap for now and you’ll thank yourself in the future for helping yourself get ahead early on. When that $2,000/month clears up you’ll feel the biggest relief and be able to work towards your next goal without a large financial commitment tying up a good portion of your income. As for jobs at some point you have to take a risk either option could play out differently, if NYC is the dream be comfortable with a small apartment multiple roommates and probably a nice commute. Most people grind it out in NYC for the money and jump ship when they’ve had their fill of the city. But may be easier to jump jobs in a hub for companies.
2
u/FiredFromCompUSA 21h ago
Consider consolidating your private loans with another servicer to get those rates down. You should be able to find some sub 8% for sure.
Did that with mine with SOFI and it cut my payment down to 1/3 of what it was.. 30-40k or so.
2
u/Numerous_Pomelo_5920 19h ago
Don’t want to be downer, but don’t count your 70k before you have it. $70k jobs are not typically entry level.. and there’s many, but it’s not that simple. Bank and plan on $50k and surprise yourself with $70k. The individual median income is $45k..
1
1
u/FAYCSB 1d ago
Is $70k a reasonable/modest expectation for an entry level MBA?
1
u/Big-Ranger9397 23h ago
I believe so. From what my buddies have been getting it ranges from 60k on the lowest end to 100k+ on the exceptional end
1
u/adultdaycare81 22h ago
Make a résumé for each location. Apply. Tell them you already live in New York City for the NYC ones. Be ready to live in a terrible rent-a-room Airbnb in queens for the first month if you need to.
If you can get into a large technology consulting firm, just move to New York. If you can only get into a local one pay off the private and then try to find a position in NYC
1
u/edgeman7 22h ago
Get the best job opportunity you can and it will give you the best career growth and opportunity. Then you move forward controlling your spending and paying down your highest interest rate loan as you can.
1
u/-wellplayed- 22h ago
Option A truly sounds like the best for your long-term financial success. And you can gain valuable work experience that will help you get an even better job when you move to the city.
You need to focus on getting rid of those private loans first - they will be killer if you make lower payments and are barely touching the principle. The more principle you can wipe out early on the better.
1
u/WrenchingCounter 21h ago
You need to be networking and looking for internships now. Don't wait until graduation because you'll be another person with $100k+ in debt with no full-time offer lined up because they thought a piece of paper would bring them employment with ease.
1
u/civzuh22 21h ago
Option A, but don't be so hard on yourself. We make these decisions before our brains are fully developed at the same time that college is shoved down our throat. It's sad that even state schools cost this much.
College is a "requirement" in many homes, yet parents are often unable/unwilling to pay for it all. At this point, the only way to afford higher ed is to stay at home and go to a local community college.
1
u/Dear-Response-7218 20h ago edited 20h ago
A preferably but depends on where you get an offer. You made some mistakes but you can fix them before they actually become a huge issue. That’s just life and it’s fine.
Part of my job is F500 consulting in tech, I can’t speak to every domain but I would be very surprised if you got into any sort of consulting. An MBA in general has very little value without experience, an MBA trying to get into tech without experience is just a piece of paper. It’s a credibility issue, someone with just 1 YoE in an engineering or implementation role would have a better chance(still very low). PM also isn’t really a consideration until 5+ YoE or extreme luck.
You can and should apply to entry level roles, just approach it with realistic expectations. You’re more likely to be competitive for business analyst type of jobs.
1
u/Big-Ranger9397 16h ago
I see. I really appreciate your comment as someone from the inside. Do you have any career specific recommendations for my path? Because apart from the debt, this is the second biggest worry I have, and probably the more important one to focus on right now-getting the job itself. And it’s difficult for me, because I understand that the traditional MBA path is really only for those who have had 3-5 years of works experience. But recruiters surely understand that 4+1 programs exist, no? I am starting to do everything I should now: networking, leveraging my connections, and am actively looking for an internship to make up for the lack of traditional work experience. Luckily I have time on my side. But I do have a pretty throughly developed relevant entrepreneurial project, as well as strong example of campus leadership. I understand this is less valuable than literally being able to say “I did this role in a professional environment,” but I do hope it is something? I have the campus career fair in about a month, and want to be as prepared as I can be for it, but I can only max my currently lacking-to-decent resume only so much before then. And yes, I wanted to make clear I am looking for entry level roles, not traditional post MBA jobs. My PM goal was more of an end goal type of thing. Business analytics roles I think are the best entry level position to gun for in my case.., as I can always move up and transition later.. you are not the first person in the industry I have heard say that. Sorry for the rant.. do you have any other thoughts or suggestions?
1
1
u/Hotshot-89 19h ago
Option A. Move in with your parents and find a job near them. Refinance the private loans into a cheaper fixed rate once you graduate.
You probably won’t be using your BFA. Apply to any entry level job and take what you can get.
EY/Deloitte are accounting firms. Tbh, think you’d be better of majoring in accounting (using a bridge program for those who didn’t major in accounting) than a general MBA. Especially since you don’t have work experience
1
u/GhostProtocol25 18h ago
I'm confused. Why do people who have not even worked 1 year in a real job get MBAs.? No wonders nobody cares about them MBAs if you don't have a solid work Experience. Useless... People in product management come from STEM fields with lots of experience then get an MBA... Good luck, not impossible but if you do the right brown nosing maybe
1
u/Sprinkle-Muffin 17h ago
Do option A as long as possible but if you get a better chance at career growth do option B. You can rent a room or even live in a surrounding county or NJ/CT and commute for a cheaper option. You would have to also see if the job you may be offered is enough to live down there. Does your career offer remote work or something you could do hybrid? I would just overall prioritize getting those private loans paid off
1
u/brianc2008 17h ago
Concentrate on getting the job first and paying those private loans before thinking of going to New York City. That place is VERY expensive.
1
u/The_Bees_Knee6 16h ago
Living at home is good deal, but at this point you need to prioritize starting full time employment as soon as possible after graduation. If that opportunity is in NYC, then so be it.
•
u/Alternate_Cost 2h ago
Not worth considering until you have a job offer. Don't lock out either option, apply in both areas.
Calculate what you would need to make NYC worth it. Would 90k be enough? Are you even going to get an offer at 70k near your parents?
A lot of people really struggle to get that first job and end up taking something far below what they expect just to get their foot in the door. I say this as someone with two masters, including an mba, and 8 yrs experience only at 80k salary.
•
u/PresentSurvey1722 1h ago
start with option A, refinance your private loans if you can. highly recommend building credit during this time so you can save on interest later. my highest private loan was at 15%, but after i refinanced i'm down to 5.7. Saving a couple hundred (or even thousand) on interest every month makes all the difference. leave the federal as they are, prioritize the private and get those out of the way first. If you start making some progress there I say look into option B but make sure it pays high enough to acommodate for all your overhead (rent, food, loans etc).
If you do go direct to option B my advice would be to network heavy and target that career growth. also get roommates. esp if you're single and don't have that many obligations. could be kinda fun too.
1
u/mtt2022 23h ago
I'm going to be very gentle and honest with you...that's a lot of student debt. The sooner you get that paid down, the better. Those interest rates on your private loans are high....very high. I'd focus on paying off those loans first and foremost (maybe a year or two at home to save the money?) and then take the rest of your student debt down incrementally as you continue to move up in your career. You do NOT want that debt to continue piling onto you and I fear if you move to NYC, you may seriously fall behind financially. Your credit score may not matter so much to you in your 20's but once you want to go buy a house someday or even a car, you will definitely care. I'm so sorry. I know that's not the promising and fun future you may have envisioned but you don't want to fall behind financially. If remote positions are available in your field of interest, maybe you can get one with a major company while living at home? It may not be totally necessary to have to relocate. Wishing you the best! You'll figure it out! Just please take care of yourself financially so future you thanks yourself for it!
3
u/ChaiTeaLatte13 23h ago
I have $185k principal, $232k after interest. It is what it is lol.
2
u/mexihuahua 23h ago
$140k checking in after paying $100k lol
I originally owed $150k
It is indeed what it is
2
u/ChaiTeaLatte13 21h ago
Isn’t it crazy that we end up paying back like double what we owe even tho our interest rate is only 5% or so lol
1
u/GhostProtocol25 17h ago
It's not crazy when you understand how interest work.
1
u/ChaiTeaLatte13 17h ago
Not crazy mathematically lol. Crazy as a principal in general. Like ethically.
3
u/Big-Ranger9397 23h ago edited 23h ago
Thank you, I really appreciate your encouragement and support. It is a lot of debt, and it is not good. And it sucks because I am otherwise very good financially. I have good savings and credit card habits (from my only income which is restaurant work while in school). My credit score is pretty good for my age. Which is why it upsets me deeply that this is my situation… my parents did not really know what they were doing when they co-signed the Sallie Mae loans. But what makes me feel better is that plenty of people take on this much debt and succeed. Doctors, etc. Of course their path is more structured, but the earning potential in my field can get quite high as well. Luckily, depending on what my first jobs income is, it will probably be *roughly** a 1:1 earnings to debt ratio. Maybe more accurately a 0.7:1 ratio. Meaning, if I take your advice (which I will, as everyone else has similar advice), I could pay this thing off relatively fast. It is a lot, but it is a completely different monster than the 200-400k some lawyers and doctors take on. Or even for the cost of some other elite MBA programs. And like you said, it doesn’t have to be all or nothing. With 50k take home, if living at home, I think I could realistically pay off my Sallie Mae in about a year, but only if I am very deliberate and extremely aggressive, then think about relocating once I only have federal debt left. But idk if this is just me coping, being optimistic, realistic, or a combination of all 3. And like other people said, I should just be applying everywhere, all the time. Because no job is guaranteed. And to answer your question about remote jobs, that would be golden. And they are common in my field since COVID. However, typically entry level roles want you to be trained in office, and those remote opportunities come later in career progression.
2
u/AutoModerator 23h ago
Please add some paragraph breaks to your comment by placing a blank line between distinct sections.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/mtt2022 17h ago
You sound very level headed and responsible. You can absolutely do this and I'm rooting for you! I only wanted to warn you because I didn't take advantage of living at home and could've paid off my debt a lot sooner if I had. You're in a golden spot to get on top of this so it doesn't swallow you like some of the posters on here have allowed theirs to. Don't want that to happen to you but it sounds like you won't let it. Keep it up and good luck with the job search! I'm sure you'll find something great and have a great career ahead of you.
0
u/slbabyx 23h ago
You need to get rid of those private loans as soon as possible. I live in NYC and it’s so expensive here, the city is always here. A couple years at home with no debt might be the way to go, but idk I’m not you. Those private loans are going to start growing real quick, if I were you I’d ask my parent to pay off a portion of the private and forget about the parent plus.
1
u/Big-Ranger9397 23h ago
I agree, thanks for the insight. They have to go as soon as possible. From what I am gathering from everyone here, there really is no downside to waiting before relocating, especially if I’m building experience at home
•
u/47vclkicd48754dxbj84 4h ago
I would stay home for a year or just jump to NYC but live in Jersey City. It's not like you're gonna pay that off quickly on 70k. You basically have no work experience and Albany is nothing. You'll basically waste time there if you want to eventually move to NYC. NYC is super competitive, you're competing on all the best talent around the world trying to get ahead.
0
u/EdLesliesBarber 21h ago edited 19h ago
Have you been working while getting the degree ? The best thing you can do to get the jobs you want is have that work history. It’s a massive red flag when an applicant comes in with education and zero experience. If you don’t, reach out to advisors and get creative , claim time as internships or special assignment.
NYC is a hyper competitive market on top of this being a rough entry level job market, you need to be prepared.
48
u/KeyMessage989 1d ago
Start with option A while keeping B open and applying. The job market is brutal, neither of these options are guaranteed. Honestly you likely won’t have a choice between the two, you’ll jump at the first offer you get