<p>[cross-posted from College Search and Selection]</p>
<p>Many people seem to be advertising "more than 20k" as the boundary for what constitutes "too much debt", so I'm wondering how wise it would be to take on that exact amount after graduation. I'm in the classic private school with loans vs. full-ride at local state school double-bind. A couple of factors make my situation unique, and somewhat difficult to analyze without much background in college education.</p>
<p>My decision between schools isn't nearly as drastic as the situations that other people are in on this forum, which might affect my decision on the matter. The state school that I've gotten a full-ride to is one of the universities ranked 91st in the USNWR rankings (if it's necessary to specify, I will), and the private school that I'm considering is St. Olaf in Minnesota. I want to go to graduate school after college, so taking on any form of debt worries me -- especially 20k overall. On the other hand, I'm equally worried that going to the state university will not offer me the same opportunities as an undergraduate that attending St. Olaf would. At either school, I'd be planning on majoring in math and physics, with a concentration or minor in environmental science. Would the investment be worth it?</p>
<p>If it means anything, I'm not particularly hedonistic when it comes to money, and would not be concerned about not living the typical middle-class lifestyle. What I am concerned about is being unable to pay off the loans for a considerable amount of time, or not being able to attend the graduate school I could potentially be accepted to due to finances.</p>
<p>Do you mean $20K per year or total at the end of 4 years? $20K for 4 years is certainly reasonable, even if you have graduate school to consider. It's the cost of a car, less than most new cars. If it's $80K, then you have something else to consider.</p>
<p>Yes; what Bills said is correct. If it was the best college in the country; "Best meaning the area of study you were interested in; I.e. CSU for veterinary or Caltec/MIT for certain levels of engineering"; then $80,000 total after 4 years of school would be about the very high end of debt. This will take a few years to pay off; but at the average salary of these type of jobs, it could be worth it. $20,000 total; no matter what your degree is in; is basically a cheap car loan. That is almost nothing to pay off in 3-4 years. However; an $80,000 debt after 4 years with a degree in Art, History, English, or some other Liberal Arts degree would not be worth the debt. You could have gotten that degree from the University of Wherever with no debt. Debt is worth it when your major is Very Specific and the school you are going to is one of the best at that major.</p>
<p>The 20k stafford loan, IMO is a great deal for a kid. Its a way of building credit without crushing them financially with monthly payments. It helps them to take some ownership of their education. My older son has it (at UM) and depending on where my younger son goes, he will most likely end up with it too.</p>
<p>80k debt is an awful lot. With our economy the way that it is, getting that dream job that will let you pay that off in year one is iffy at best. And then if you factor in any kind of grad school or law school......</p>
<p>Go to FinAid</a>! Financial Aid, College Scholarships and Student Loans - find the loan calculator, plug in the amount and the interest rate, and the number of years you want to pay it off in (say, 10), and you'll find out the exact amount per month you'll need to pay, and the income you'd need to afford it.</p>
<p>Like others have said, I think 20,000 total is perfectly manageable. 80,000, on the other hand, is probably quite a bit too much, especially if you want to go onto grad school.</p>
<p>The Op says, "20k overall" so I assume that means $20,000 after 4 years.</p>
<p>Hexagonsun, please confirm.</p>
<p>Our son faced a similar choice: Full tuition at our (excellent) state school or FA that included $20,000 (total) in loans to attend the high-priced private. He, a very debt-averse kid, chose to take the loans, and we did not feel that the amount would be too great to handle upon graduating in his field.</p>
<p>Grad schools often come with fellowships, so even if you aren't saving money they aren't likely to make your debt worse. Professional schools like business, architecture, law and med school are of course a whole different kettle of fish. But I agree with other posters $20,000 is very doable.</p>