While Chris Hornak, an MBA student, has watched the failing Fortune 500 companies and the stock market crash with trepidation, he remains unaffected by the floundering economy.
“The goal is to die before I have to pay back loans,” Hornak, a first semester grad student going for his MBA, said.
Hornak figures he will keep going to school, getting endless deferrals on his student loans, until the job market evens out.
Many graduate students share similar views.
They are here for a higher education and feel that no matter the cost, obtaining the coveted master’s degree is in their best, long-term interest. Despite the steep price of a graduate degree, many companies require a higher education for advancement opportunities.
The question for students is whether the cost of the degree offsets the cost of getting there and if the benefits are worth it.
“I’m better off to have an education, even though I have to deal with loans,” Hornak said.
Some students feel more confident in their choice of careers, rather than just obtaining a higher education degree.
“I’m in education, so I feel secure knowing that I will always have a job,” Jessica King, a first semester graduate student seeking an M.A. in curriculum and instruction, said, meaning that there will always be a need for educators.
Now, students are not the only ones borrowing and their loans seem small in comparison to the recent money changes going through Wall Street.
According to CNN, many banks and investment firms are increasing the amount of money they are borrowing from emergency lenders, and as of last week major Wall Street companies were up to $20.3 million in their daily borrowing. Through a trickle-down effect, this could affect those students who rely on loans, and specifically grants, through the government.
As a bailout plan emerges from the government, some students are still left wondering where the loans and grant monies are going to come from. Many are paying for school on their own and rely on the help of lenders like the recent JP Morgan buy-out, Washington Mutual and other government money like Pell grants.
