<p>I'm down to the wire deciding which college to choose, and my favorite school gave a very meager financial aid package. Even with my parents paying all that they can, I will have to take about $30,000 per year in loans for undergrad. I plan to go on to medical school after, which will be even more loans. Will I be shooting myself in the foot by taking so much in loans for a dream undergraduate school? I don't know anyone who has borrowed this much, so it really scares me. Any thoughts? Insight? Similar experiences?</p>
<p>It should really scare you; that's a LOT of money. $120K... about $100K more than I'd feel comfortable with my S taking out in loans. </p>
<p>Have you talked with your favorite school to see whether the financial aid package can be improved?</p>
<p>YES YES YES</p>
<p>Much too much in loans. </p>
<p>If you are not paying the interest as you go along but are capitalizing it you will owe, assuming an 8% interest rate, @ $145,000 at the end of your undergrad years. If you continue to defer the interest and repayment for 4 year of medical school you will owe almost $200,000 before you finish medical school. that is $200,000 For your undergrad - not including what you borrow for medical school.</p>
<p>If you go to finaid.org there is a loan calculator that shows you what your monthly repayment will be and the salary required to support it.
FinAid</a> | Calculators | Loan Calculator</p>
<p>For the $145k debt - without medical school - you are looking at monthly payments of @ $1700 for 10 years with a recommended income of over $200,000 - that is starting income when you graduate (undergrad - not medical). </p>
<p>For the $200,000 you are looking at a *monthly payment of @ $2450 for 10 years * with a recommended income of nearly $300,000. - and this does not include loans for medical school. So maybe double that debt and payment?</p>
<p>With this much debt you will severely restrict your future options. You may find you cannot afford to go to medical school. Don't do it. You will be paying for that 4 years of dream school for the next 10 - 20 years minimum.</p>
<p>Do the math - then instead of thinking of that 4 years at a 'dream' school think about what you want to do for the 10-20 years after you finish your dream school. House, family, nice car, nice vacation?? Or debt, debt,debt and, yes, more debt.</p>
<p>Just my 10 cents worth.</p>
<p>Yes, in my opinion, $30k annually in loans is too much! Esp with med school.</p>
<p>My D just finished UG, she had dream schools with large loan components and she went with the financial safety. She has not won the lottery, neither have we, I am very glad we went the safe route.</p>
<p>Toooooo much.</p>
<p>
[quote]
Will I be shooting myself in the foot by taking so much in loans
[/quote]
</p>
<p>No.</p>
<p>That is more like shooting yourself in the head.</p>
<p>You'll be shooting yourself, your dog, your significant other, potential children, their children...do not go that far in...</p>
<p>Keep in mind the AMA recently asked (begged actually) the Bush administration to expand deferments and loan forgiveness for doctors, because they are finding that recent MD's cannot pay the loan tolls. And its not uncommon after deferments, refinancing and etc, for these amounts to double and triple. The Bush people refused the proposal, but just perhaps their buddies in the SL industry who're clearing some 15 million a day out of this situation, stopped it. </p>
<p>Plus there are only so many barrios, reservations, etc to desperately work in seeking loan forgiveness, and there will be increasing pressure to deny those forbearances and forgiveness programs. </p>
<p>Unless you intent is to be a poor doctor, who really loves a lifetime of ramen noodles, collections agencies and riding the bus, don't do it...</p>
<p>It is doubtful, at this time, that you will even be able to get that much in loans without a parental loan. Several articles in WSJ in past couple of weeks.
UPDATE</a> 3-Bush admin targets student loans, rules out FFB | Markets | Markets News | Reuters</p>
<p>Reduced taxation, Consumer Debt, Iraq War Debt, Housing Defaults, and reluctance of our "owners" to lend, will mean less for education and everything else.</p>
<p>"Reduced taxation, Consumer Debt, Iraq War Debt, Housing Defaults, and reluctance of our "owners" to lend, will mean less for education and everything else" </p>
<p>Alas true, and it's too late for many of us to make reverse immigrations back to the old country...0h well, downwards goes the course of empire...</p>
<p>Grand Central, </p>
<p>One way to look at the situation with appropriate caution, is to consider what the financial crony network, governmental corruption, have produced in the current SL situation, especially vis a vi private or subsidized student loans.
The SL situation has become an equivalent to the old company stores, you may need the education and our society demands it, but once you're owed, your owned. You'll never again be your own man (or woman), all it takes is a few deferments, a missed payment or two, a sickness, or the bundling of your loans a few times over, and your futures over...</p>
<p>Many of us were unable to see this situation as it first arose, and so our educations have become the equivalent of a sapling which was bent by heavy burdens before it could rise above the grass...a promise with no promise...</p>
<p>In short don't do what you propose, and justifiably fear, without quite knowing why...</p>