Please help, I’m really stuck – Eventually sell home or keep it as collateral?

Question by Tandy: Please help, I’m really stuck – Eventually sell home or keep it as collateral?
I am in my mid-twenties, and I am attending an expensive university in Southern California to get my Master’s degree in Clinical Psychology.

By the way, please excuse me if I use financial terms incorrectly…I’m really unfamiliar with financial terminology.

I am originally from Canada and am a home-owner in Calgary, Alberta – my parents sold their large house when I was 20 and bought another house for themselves and build a smaller house under my name. I am technically a property owner. They did this so that I could get a substantial loan for university.

My property assessment in 2008 was $ 416,000 (Canadian funds).

I received a loan of $ 150,000 (Canadian funds) in October of 2008.

I recently spend a large amount of money ($ 47,500 US) to put a family member through alcohol treatment. I realize that is really expensive, but I tell you, it was worth it to see this person sober. However, that was basically 1/3 of my loan.

My schooling is costing around $ 62,000 US for the 2 year Master’s Degree. With rent, utilities, living expenses, plus everything I needed to buy when I moved down here from Canada (furniture, etc), I am running out of money really quickly. I’m working on getting an $ 80,000 (Canadian funds) line-of-credit from a Canadian bank with my parents’ help.

After the economy improves, I would like to sell my house in Calgary (say, within the next 5-7 years) so that I can begin my life debt-free. My parents want me to keep the house so that I can have some sort of collateral/assets (?) in the future. I am arguing that the house is not really “worth” anything because I have loans that are $ 150,000 + interest. I really don’t want to spend the rest of my life paying off student loans if I don’t have to.

Any advice??

Thank you so much in advance.

~K
The first poster is right, it’s not a student loan. I was mistaken when I said that at the end.

Also, I am renting the property in Calgary for $ 1700 (Canadian), which is around $ 1500 US.

I don’t really anticipate moving back to Calgary. I love Canada and miss it a lot, but I can’t take the winters…lol. It does get warm in Canada, but not as warm as So-Cal!
Also, because I’m here on a student visa, I can’t legally work in the States until I’m finished school, except for working on campus (and I can only work 19.5 hours/week.). I checked and there aren’t any jobs available right now.

To be a Marriage and Family Therapist in California, I need 3000 hours of clinical work experience (which I will most likely be doing for free), so even though I could potentially work on campus, I would like to focus my time on getting my 3000 hours.

Best answer:

Answer by dusty_titus
Well, loans made on houses are not STUDENT LOANS (with 3 to 4 percent) Your parents worry that you’ll need to come back and live in house, cause you can’t make it here. Meanwhile, you CAN rent your house and at least make some of the loan money back. Loans and mortgages are forever! —

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