Why are you $125,000 in debt after only 3 semesters?

Paul writes:

Why are you $125,000 in debt after only 3 semesters? I assume some of that is undergrad right? How much in loans is required to fully finance Ross U. per semester (including rent, food, etc)?

Hi Paul,

You're right, it's ballooned to $125,000 because of my existing debt from undergrad.

When first starting at Ross I don't think anyone really knows how much to borrow. Most people apply for the full recommended amount, according to the Ross default recommendations. That recommendation turns out to be roughly $25,000 per semester.

• Tuition per semester is roughly $15,000.
  
• Round trip plane tickets vary, depending where you're coming from. It turns out to be $1,300 for me, from San Francisco.
  
• My rent is $650/mo ($2,600 per semester). I use air conditioning all the time and I spend about $250 on electricity. I think I really don't spend as much as a lot of other students when it comes to creature comforts and food.
  
• At the end of each of my 2 previous semester I had about $5,000 left over. So that means I've only been spending $1000 on food for 4 months. (Remember that the exchange rate is 1 US Dollar for 2.67 East Caribbean Dollars.)

After my first 2 semester I had $10,000 left over from loans, but I went ahead and borrowed the full $25,000 again, this 3rd semester. I'd rather have more than less.

I'm also keeping in mind that on my next break I'm going to have to buy a full set of professional dress clothes, which I'm going to pay for in full from my loan money.

If I keep building up my leftover cash, I'm going to start borrowing less and less.