<p>@PurpleTitan Yeah they’re from West Africa. They’re logic is that the prestige of NYU separates me from other candidates applying for a job. I know that’s not the case but this is a battle I’ve been fighting for years now</p>
<p>Yeah, it’s too bad that they don’t really understand how it works in this country.</p>
<p>Do they understand basic finance? Ask them to lay out the loan repayment plan with compounding interest and everything.</p>
<p>The ironic part is, as a URM with your scores, you might even get some merit scholarships from some privates, making them much cheaper to attend (and NJ has some decent publics as well and in-state tuition is much less; in fact, they’re free tuition if you join the NJ National Guard; risk of deployment, though).</p>
<p>So they don’t have a family friend they trust who you can recruit to knock some sense in to them? Maybe show them this thread? Show them the Payscale.com data showing how Rutgers and NYU grads do roughly about as well salary-wise post-graduation?</p>
<p>Don’t do it. No disrespect to your parents, but they really are undereducated and ignorant when it comes to this area of financial aid for a university education.</p>
<p>My daughter graduated with a small amount of debt ($22K). She has been using her entire paycheck every two weeks to pay off her loan-it’s been over a year now and although she doesn’t mind living with us, I can tell she hates not being independent. </p>
<p>She is a software engineer and makes a good salary but until she pays off that loan, she can’t move. She lives at home with us. She uses our medical insurance, car insurance and we provide her a room, groceries, clothing, car, car maintenance/gas and everything else. She only borrowed $22,000 over 4 years. You will be looking at ten times that amount minimum. Are you okay with having your parents support you for 10 to 15 years? Your family will be extremely tight for money. If they go into bankruptcy, which is high likely and possible, the debt will still be there. The courts do not dismiss college loans and these loans will follow you everywhere. Your credit won’t allow you to buy a car, house or take out a personal loan. </p>
<p>You need to advise them that you will not be responsible for a loan that you don’t want to take, and, put it in writing so that 10 years down the road, when they are nearly bankrupt, you can say: I tried to tell you but you wouldn’t listen. </p>
<p>I was just listing the only reasons I could think–not implying I know your parents circumstances. I will try not to say too much more as I’ve made it known what I think and I don’t want to harangue you. But do run the numbers and understand how the magic of compounding means you pay back a lot more than you borrow. As you won’t be able to make 3,000 a month payments any delay that you can get means more payback. Maybe you will end up paying half a million in the end.</p>
<p>One of the problems with this attempt is failing to qualify for the loans later when you are loaded up to the 132k level yr 198k yr 3, then . Then you can’t finish, which is the worst situation. If you don’t qualify Sr year, you need to transfer and where do you get the funds and you have to go 2 years to the next place to get a diploma. Can’t go to CC then. So much huge risk.</p>
<p>And I was thinking of how hard it was for my sister to get hired because of credit check she lost a good banking job. People with massive amounts of debt --and you are talking massive–are bad risks for fraud and may not get hired in banking, finance and other positions, sensitive or not. Bad credit scores can make you a poor choice in a lot of companies eyes. Get a bit of the picture here:</p>
<p><a href=“http://www.thestreet.com/story/12076860/1/student-trap-so-much-loan-debt-companies-wont-hire-you.html”>http://www.thestreet.com/story/12076860/1/student-trap-so-much-loan-debt-companies-wont-hire-you.html</a></p>
<p>Borrowing 300k for undergrad alone is so nuts, I don’t even know where to begin. Borrowing that amount isn’t even worth it for HYPMS, so why on earth give it a 2nd thought for NYU?</p>
<p><a href=“http://journalism.nyu.edu/publishing/archives/livewire/money_work/gen_debt/”>http://journalism.nyu.edu/publishing/archives/livewire/money_work/gen_debt/</a>
<a href=“http://nyulocal.com/on-campus/2011/04/26/your-nyu-debt-is-probably-not-worth-it/”>http://nyulocal.com/on-campus/2011/04/26/your-nyu-debt-is-probably-not-worth-it/</a></p>
<p>With your stats (3.7 GPA, 2100 SAT), you would likely have gotten automatic full rides at a number of schools:
<a href=“http://automaticfulltuition.yolasite.com/”>http://automaticfulltuition.yolasite.com/</a></p>
<p>There are also competitive full rides to try for:
<a href=“Competitive Full Tuition / Full Ride Scholarships - #46 by ucbalumnus - Financial Aid and Scholarships - College Confidential Forums”>http://talk.collegeconfidential.com/financial-aid-scholarships/1461983-competitive-full-tuition-full-ride-scholarships-p4.html</a></p>
<p>If you cancel your unaffordable NYU registration and take a gap year to work and apply to affordable schools, you will be able to go to college without putting yourself or your parents into a financial trap.</p>
<p>If they take a gap year, won’t their current loan come due?</p>
<p>What loan?</p>
<p>I was thinking of another thread where the student had just finished their first year.</p>
<p>Take a gap year and reapply…do not take any classes this next year. You dont want to ruin your incoming frosh status.</p>
<p>show your parents this thread. explain to them that these posters have many years/decades experiences with the american college system. we know that you will NOT get paid more for having a NYU degree. NO. </p>
<br>
<br>
<p>???
I am not sure what you mean here. A company is NOT going to help you pay your loans. A company will pay you a salary, the same salary as they are paying the graduate from a SUNY, or ANY OTHER SCHOOL.</p>
<p>I dont know where your parents are from, but maybe in their country things were dfferent, so they are giving you very bad and dangerous advice.</p>
<p>BESIDES…you have NO IDEA where your job will be. it may not be near your family’s home. It may be in an area where rents are VERY pricey and cost 20% of your income.</p>
<p>Your parents may also not realize how much you will have to pay in taxes. You are a single person who will earn a good salary. You will have to pay a LOT in fed taxes. Your parents may not pay any fed taxes (gets all or nearly all back). you will not.</p>
<p>Warren, I’ve been posting on this forum for a LONG time. There is seldom complete agreement on a topic. As you can see…EVERYONE posting on this thread says $300,000 for undergrad is way too much in loans and should not be done. EVERYONE.</p>
<p>Try this with your parents…they earn $150,000 a year and they cannot pay ANYTHING towards your college costs…it will all be loans. If THEY can’t pay $3000 a month towards college (I’m using that number because that would be YOUR loan payment after taking out $300,000 in loans) with a $150,000 income, what makes them think that YOU will be able to do so on an entry level job salary that will likely be half of that…or less.</p>
<p>You are not getting loans in your name with your parents cosigning them. Co signing means both you and your parents are equally shackled by such loans. Like you are cosigning for your parents so that both of you are held hostage to the consequences of the loans since you’ d both have the loans on your credit records with ramifications for BOTH of you. </p>
<p>Your parents are established, know the ropes and should understand all of this, and if they STILL want to borrow the money themselves, it’s up to them. But you? You’re still a teenager and have no idea what this means. You don’t know the pain of repaying such loans, and ironically having them on your credit history might block you from some jobs. They don’t want to hire people so much in debt in some of the sensitive jobs and in the financial industry. My DH’s company, where my son works do credit checks before iring. So this can hurt you. </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>The loan situation is that YOU can borrow $5500 for freshman year, $6500 for sophomore year, $7500 for jr and sr years as a student and pretty reasonable rates. THat’s it, unless the school offers you some Perkins loans or their own loans which NYU has not. </p>
<p>But your parents can apply to PLUS and borrow pretty much as you say. ONE parent only has to apply and if accepted, the loan goes pretty much as you describe. The catch is that the interest rate is about 7%. If you or the parent dies, the loan is forgiven. But it goes on the parent’s credit record. They can start paying the loan back right away, deduct the interest from their returns. A parent has to apply every single year. If your parents have owed amounts for over 90 days on their credit reports, the loan may be declined. </p>
<p>If they do NOT qualify for PLUS which is a simple online takes a minute approval in the privacy of their homes while sitting at the computer, a parent can apply for the co-loans which pretty much use YOU as collateral or your parents. The loan terms are NOT as nice, they go after both of you, if one dies, the other still has the loan, and it’s on both of your credit records. If the loan is not paid, by whoever says will make the payment or is late, both parties get zinged on the credit report. </p>
<p>Just think if you are applying for a job in banking or some job with very sensitive info at a great company, or a government job. You think they’ll hire a kid with $200-300K owed? Nope. My son has one of these jobs and they vetted him up and down. They don’t want anyone tempted to go steal the info and people who owe a lot of mone fall into that category. Also , when you get out, to find a good job involves expenses too. They don’t just fall in your lap. Then you have needs. That loan will shackle you for 25-30 years, maybe more You can’t afford it.</p>
<p>Thumper makes an excellent point in that your parents make 6 figures, they’ve known for years they want you in college,and THEY can’t come up with the loan payment amount monthly to put towards your education. How the heck are you, some teenager going to be able to manage this? </p>
<p>And yes, I have seen this many times where the parents froth at the mouth at the opportunity to get their kid in a name school and are willing to do anything for it But they are selling YOU down river if they want YOU to take the loans in your name too.</p>
<p>This is a NY Times story in the making.</p>
<p>Sorry I made it seem like they wouldn’t be contributing anything to the loans. They’d be paying about 800 a month while I’m in college. Still I guess I need to seriously consider other options</p>
<p>Don’t some schools (I would think many publics) have January admittance?</p>
<p>If THEY can only do $800 a month on $150,000 income, how do they expect to repay $3000 a month? Or expect you to do the same on much less income.</p>
<p>I was thinking I’d apply for IBR to keep the payments manageable. But this and the majority of things I’ve read online have dissuaded me from even attempting to take on this much debt. I’m going to talk with my parents about taking a gap year and re applying to some cheaper schools</p>
<p>OP, your parents paying $800/month is less than what I paid for my oldest D’s room and board alone. And NYU’s R&B alone is more than twice that. IMO you need to reassess your school and look for a place with merit $.</p>