<p>What kind of repayment plan are you looking for? You will be required to repay these loans, with interest. Depending on the terms of the private loan, repayment could start immediately. Or it could start later.</p>
<p>But the huge rub is…your parents will need to continue to qualify for these loans for four years. If their debt to income ratio becomes off, they will NOT qualify. Then what will you do??</p>
<p>Why do your parents want you to go to NYU so much? </p>
<p>If THEY are willing to assume the debt, that is their business. I think it’s insane…but maybe they don’t mind assuming all that debt.</p>
<p>But please…do NOT cosign those loans. YOU do not need to have this very significant debt in your name. </p>
<p>@thumper1, I have seen lots of kids with stars in their eyes about NYU (misplaced stars, IMHO). But not usually parents. OP, talk some sense into your folks. No school (not even HYPS) is worth that kind of debt. </p>
<p>Here is the bottom line: it’s up to your parents. You can only take out the loans NYU has offered to you. How much is that? The rest your parents have to take out. They are adults. If they think they can afford to pay back the loans, then it’s their business. YOU should not be cosigning any because if you do, it’s really just like taking them out yourself, and it’s going to cause you problems in terms of credit for any number of things including some job possibilities, credit you might need to be right out of school and owing so much, not to mention how much you are going to have to repay each year. You want to live with your parents for ten years or so out of college? The joint loans and parent loans will not qualify under the repayment plans. </p>
<p>If your parents are so adamant that you go freshman year, and THEY will pay for you to go, as long as you only take out the student loans allowed in your name only, give it a go. I suggest you look for some less expensive options for transferring next year to have that in your pocket if your parents can’t borrow any more and/or they come to their senses about what this is costing.</p>
<p>I have seen students get generous awards from NYU, their best package, in fact, but as the data shows, that’s for very few students. Most kids are gapped. </p>
<p>I know a number of kids who started out there boarding, and then had to commute, still very expensive, and then take a term off and work. One young man did that for two years and took summer courses which were less expensive . He graduated in 7 semesters. By taking the fall semester off, he was able to borrow the entire DIrect Loan amount in the spring plus he saved as much as he could working full time in the summer and fall right up to the start of the spring semester. And he commuted and bagged his lunch. He did not feel it was always worth it. My son’s close friend is commuting and though he loves going there, he really so wishes he could live there. Not gonna happen unless the family wins the lottery, and they are high income. They sold their house so that their next two will be able to got to a college of choice and that their son can graduate from NYU next year. But he will have been a commuter for 3 out of 4 years and I believe it still cost him and his family Close to $50K a year, much of it in loans, mostly on part of his parents. But I think they are paying about half of this, maybe more out of pocket. </p>
<p>Warren…WHY are your parents insisting you go to NYU? Did you apply there and get accepted ED? Did your parents indicate that they would pay the bills? </p>
<p>As Cptofthehouse noted…it’s their business if they want to fund this with loans. While I think it’s NUTS, it,really isn’t my business. </p>
<p>What other college options did you have? Were any more affordable than NYU? Or did you only apply to NYU ED? </p>
<p>Your story is missing a critical piece…and that is WHY this school is so important.</p>
<p>BTW, you don’t necessarily have to take a gap year if you decide not to do this (and that is certainly what you should decide). There are many colleges still accepting applications for fall:</p>
<p><a href=“http://www.nacacnet.org/research/research-data/College-Openings/Pages/College-Openings-Results.aspx”>http://www.nacacnet.org/research/research-data/College-Openings/Pages/College-Openings-Results.aspx</a></p>
<p>@thumper1 They believe that prestige is everything in America. They think by having NYU on my undergrad degree, future employers will be all over me. They scoffed at me when I applied to schools like Ithaca, they think anything less than name brand is for bums. My parents said they’d be paying 10,000 a year to help me while I’m in school. I just looked it up I can get loans in my name and have my parents co-sign for them. My parents are looking into Sallie Mae, my dad said they have an interest rate way low than the Federal loans I’ve been given and there isn’t a term that I have to pay by like with the Federal loans. So if I take the Sallie Mae would that be somewhat manageable?</p>
<p>One more question…if you applied ED, you got accepted in Janaury with a preliminary financial,aid,award (which was presumably nothing). </p>
<p>And NOW, six months later you are figuring out that this is a huge amount of debt? What took you so long? You easily could have said NO to your ED acceptance based on the finances not working for you. Then your other applications could have moved forward (assuming you had any)…with plenty of time to apply to other schools that were more affordable. </p>
<p>So…why the wait? And why NYU?</p>
<p>As an NYU alum, I say DO NOT DO IT. Seriously. Do. Not. Take a gap year, and apply smarter next time. Or go to CC and transfer.</p>
<p>Tell your parents to Google NYU debt stories. The place is notorious.</p>
<p><a href=“http://www.villagevoice.com/2011-11-09/news/debt-and-debtor/”>http://www.villagevoice.com/2011-11-09/news/debt-and-debtor/</a></p>
<p>@thumper1 I applied ED2 and got my acceptance letter in February. They told me to withdraw all my applications within the next 3 weeks, but they ended up giving me my preliminary aid package in April. So I didn’t know what the financial situation was going to be like, I was just being too optimistic I guess.</p>
<p>To anyone else reading this…NEVER accept an ED offer of acceptance without your financial,aid offer in hand. This requires getting your financial aid application forms completed by the early priority deadline. Repeat…NEVER accept an ED acceptance offer without the financial aid offer in hand. In fact…you shouldn’t have to do so.</p>
<p>This is really sick that your parents are egging this on. Sit by yourself and figure out what you will sign for. Refuse to sign for more, that needs to be in your parent’s name. They should not be making a 17 year old choose a disastrous financial plan. I think i addition to your own Federal Loans in your name, the most you should take out is 10k a year. Even that is pretty tough and I wouldn’t recommend it. But do not take those other loans. If your parents think it is such a good idea, they can take them, that is their choice as adults. </p>
<p>There is no reason to cosign and have you on it and your parents. If the case happens that the loan payments can’t be made, they will come after both of you, attach all of your money. At least if your name isn’t on it, your parents can move in with you, maybe in the fold out couch in the living room of your one Br, when all their money is attached and assets liquidated to pay. Than at least you will have your paycheck to buy groceries. Otherwise your wages will be attached also.</p>
<p>I’m afraid this really is a hopeless situation. It isn’t like you are close and just taking out a little more. How are they even supposed to get a loan for that? Are they putting up their house?</p>
<p>Can someone explain to me this loan situation and provide some concrete links I can rely on? My parents don’t fully understand the magnitude of what I’m getting into. My mother is telling me Sallie Mae will give me a 66k a year loan for every year of my undergrad and that their loan plans are flexible to the point that I can pay any amount for an unlimited amount of time as long as I show I’m making an effort to pay it off.</p>
<p>YOU would need to cosign those loans. Do YOU want $60,000 plus in loans per year? If not…just say NO.</p>
<p>And FYI…there are NO free rides. Any loans that are forgiven you pay taxes on at the end of the time. </p>
<p>OP, go to this link. </p>
<p><a href=“Loan Payment Calculator - Finaid”>Your Guide for College Financial Aid - Finaid; </p>
<p>Plug in your numbers (say you only take out $220K in loans just to assume your parents help a bit and you earn money in the summer, etc). Give it a 15 year payback period. I left the interest at 6.8%. Your loan payments would be over $1,900 per month, so about $24,000/year. That is a huge burden at a time when you should be saving money for a downpayment on a house, going to grad school, maybe getting married and having kids, and starting to save for your own retirement. And you probably have to start paying on these loans right away as soon as you take them.</p>
<p>Your parents are blinded by their perception of prestige of NYU, which isn’t even accurate. And your mom’s view that they are “giving” you loans is really missing the point. You will owe what you borrowed plus interest… don’t compound your parents’ stupidity (and your own at what happened with your high school situation) by doing this. Step away and tell your parents that the consequence of your mistake is that you didn’t get into a school that is affordable for you, and you need to make a different choice. If you got into someplace a LOT more affordable, then call and see if you can still attend. Explain that you hadn’t understand your FA package, and can’t afford the school you did ED for, and see if you can still go there.</p>
<p>The non-Stafford loans don’t qualify for student-loan forgiveness, right?</p>
<p>Are your parents from another country? They really don’t seem to understand how it works in the US. A degree from NYU guarantees you nothing in life (while 300K in debt, most of it non-dischargable, guarantees you penury). It’s not as if NYU is even that great of a door-opener when it comes to opportunities (outside of maybe Wall Street if you’re going to Stern). Rutger grads earn, on average, about as much as NYU grads 10-19 years out. . . .</p>
<p>And as others have said, DON’T DON’T DON’T sign anything (other than the Staffords).</p>
<p>Even if Sallie Mae has that, and I don’t believe they do the way your parents think, why would anyone take that kind of debt? Because they are completely ignorant. They are poor or uneducated or out of their mind or a teenager with limited experience.No one does this. No one with any sense would try to borrow this much. Also, it is not assured your parents would qualify for that amount. Their private loans require creditworthiness each and every year. DO NOT DO THIS. Don’t sign anything except your own student loans. This isn’t right. </p>
<p>If you must, read all the Sallie Mae private loans stuff yourself. Find the fine print. All the talk about flexibility goes out the window when you sign and you don’t meet some portion of the obligation. They do not expect this size of loan. But I think you should just shut this down. Tell them you can’t mortgage your future like that. You need freedom to start off and pursue a career and live where you want. Not an anchor of debt restricting all your actions.
<a href=“Student Loans for College: Apply Today | Sallie Mae”>404;
<p>@BrownParent My parents grew up poor, but they aren’t uneducated. They’re both Oxford graduates. They may not understand the whole picture but they’re not stupid.</p>