Recent grad.- travel or save?

[jk123]

Hi all,
I'm soon graduating from grad. school and will have to do a year long unpaid internship for a year after, during which time I'll have little to no opportunity to work (maybe twice a week part time). I have about 14,000 to my name and a good part of that is student loans. I can defer the loans until after the internship when I can actually start working. I have a great opportunity to travel for 3 weeks in europe with 2 best friends and we've estimated the cost at approx. 3,000 dollars. My parents tell me bad idea. I know it would be smart to save money. But this opportunity rocks too. Please, people with more financial experience than me, give me your opinion and advice! I got "cancel for any reason" insurance in case in May I decide against it after the plane tickets and travel passes have been purchased. I may be able to work this semester doing temp work but that's about it. Also, my teaching assistantship pays enough for necessities but it's pretty impossible to save any money from what I get paid. Thanks for the help!

[cindyg86]

I'm no financial expert (far from it) but I'm in college and will be graduating soon, so I know how you feel.

Honestly, I would go! This is a once in a lifetime opportunity and you have hardly anything holding you back. I'm actually going to London for SB with 2 of my closests friends. Sure, I could stay home and save the $2500 but the experience and memories are worth so much more to me. I don't think you can really put a price on experiencing other countries and their cultures. People may say to save your money and go to Europe when you have better means but who knows if you'll have the chance? I say go! Have a blast and don't worry!

There are tons of books on how to do Europe on a budget and I think that would definitely be something to look at. A lot of places to see are free, or of very little cost so I would look into that.

But go, definitely. You won't regret it.

[flavor]

Where would you get the $3,000 from?

[cindyg86]

Where would you get the $3,000 from?

The way I took it was that he had $14,000 in student loans that he doesn't have to repay until he official graduates. Is this correct? He could just take $3,000 of that to go.

[docstudent]

GO!!!

I opted to go to Europe over Christmas break of '06, and it proved to be a life- changing experience. I am finishing my doctorate degree and I plan to travel througout all throughout Europe for a month. Once you have a fast-track career and family, the ability to travel become difficult and far in between. If it is not going to cause you to miss a bill, ruin your credit score, or leave you homeless..ummm, Enjoy Europe!

[sweeps]

The way I took it was that he had $14,000 in student loans that he doesn't have to repay until he official graduates. Is this correct? He could just take $3,000 of that to go.

That $3,000 isn't free money... it's going to have to be repaid (with accrued interest if unsubsidized) and OP admits he's not going to have much income-making opportunity for at least a year.

I'm very doubtful that the trip will cost just $3,000. 3 weeks in Europe? Especially with a record-high Euro?

I'm also curious as to why the parents are against this -- maybe there is more to the story?

Sure, I could stay home and save the $2500 but the experience and memories are worth so much more to me.

This is a good example of what gets people buried in debt.

[jk123]

Sweeps, this is precisely when I'm so torn. That rough estimate of 3,000 (although it was made considering the current conversion rate) will be from loan money....no interest will accrue during the internship year though. Additionally I'll probably take out a small personal loan during that year since I still need to live but will have no income. Parents are against this obviously because they believe me saving my little money is smarter than using it on a trip, although they admit it's a great opportunity. And yes, I also think it would be smart to save. But then again it is a fabulous opportunity. They are concerned about my financial future, no surprise there. And I don't want to be in debt obviously, but already at this point I'll be living off loans no matter what. This trip will make it an extra $3,000.

[autoxer]

I went to Europe my senior year of college. It was fun, but not 'life-changing.' It was not a 'Once in a lifetime opportunity.' Sure it was probably the only time that I could travel europe with my old roomate, but I can go there anytime... The next time I travel europe, it will be with the person that I'm in love with, not my old drinking buddy. And it's even easier now that I have a fulltime job, because I can PAY for it without debt.

I graduated with a lot of unneccessary debts that I struggled with for a few years. That was how I learned about debt. Not the best way to learn, but thankfully that is all behind me now.

And I don't want to be in debt obviously, but already at this point I'll be living off loans no matter what. This trip will make it an extra $3,000.

I'm already in debt, so what's another $3k. Don't use that argument to justify it.

[flavor]

In my opinion, I think you should wait till you are completely done with school and have a job. Than you can affortd it. It's not like Europe will disappear in the next couple of years, and you'll never get the chance to go again. Europe can be quite expensive, depending on where you go and what you do or see. Plus, with more money in your pocket you'll be happier.

[jk123]

All good points, thank you. No, europe/scotland/ireland will not disappear, but I won't have the chance to go with my 2 best friends again...after this trip they will get jobs and already have travelled there. So it is a great opportunity missed. I actually already did purchase the plane ticket, but have a traveller's insurance that reimburses 75%...so it will be some money lost if I decide against it...but I have yet to make a final decision since it's not until May. I plan on doing temp agency work this semester in addition to school, but if I cannot line up a decent job for when I come back from the trip and before the internship starts (about 2 months) then I definately will not be going.

[Ima saver]

Well, when I was young, I saved my money and by the time I was 21 years old, I purchased my first new house. It was the smartest financial move I ever made. Now, I can afford to go to Europe every year with my great husband!!

[jk123]

That's great that you were able to get a house and now travel often!
Sigh, for me,...the signs are pointing in the direction to not go It is the better financial choice, but I'm a bit sad.

[Ima saver]

I think you are making a wise choice!!

[lifeisgood]

You've gotten some good advice from various points of view. I wanted to log in just to reply to this post though. While taking on extra debt for luxury/non-essential items or experiences is not usually wise, the opportunity for travel is something I would "break the rules" for. Once life gets going, regular bills, family obligations, etc., it is almost impossible to travel with same frame of mind as someone just starting out in a career. I would say go. International travel is my passion and I haven't been out of the country now for almost 8 years due to having small children and a tight budget. Yes, there is good debt and bad debt and I'm not sure that this is good debt, but if this is indeed a great opportunity, you should consider "breaking the rules."

[Daylily]

I vote for going.
I've done Europe several times now and my only regret is that I didn't do it sooner.