Actual Experiences with Student Loans

Paying for College
1

<p>Hello, I've read tons of threads on CC about attending the classic prestigious private college with no aid @ 50k p/year vs. the flagship university with either a full ride or no debt upon graduation deal, but not many people seem to have actual experiences.</p>

<p>A little bit about myself: I am a highschool senior living in NJ who was accepted to the 2 best public schools in my state: Rutgers/TCNJ and may potentially (low odds I know, but I need to figure this out in case I do get off) get off of the wait list for Wharton @ UPenn, but is looking to attend graduate school for an MBA soon after graduating from undergrad. UPenn would likely involve me taking out 20k in loans a year for a total of 80k, I have scholarships to both state schools so it would cost next to nothing almost. I am a finance major.</p>

<p>I understand the pro's and cons of this classic situation, but I was trying to seek out people who have actually taken one of these 2 typical "routes" - preferably parents due to the hindsight factor. I was wondering if what you ended up doing paid off in the end? Everyone at my school keeps telling me how I should just go to Wharton if I get a spot (it's a very prestige-oriented town) but I'm kind of worried about the debt and the possibility that all that extra money I pay wont be...how should I explain...worthwhile relative to the debt and extra costs that might be associated with a slightly higher salary. How long did it take you to pay off your debt for those who took the expensive dream school route? For those who attended the state school, were you offered any 'great' jobs (I understand that the word great is all relative)? Would anyone have gone about the process differently? Any actual experiences would be greatly appreciated as I have been trying to mull this over for the past week or so. Has anyone else attended an Ivy and discovered that the job offers really were that much better - and I know this may be difficult to answer - than any friends who were top students and went to a not-as-prestigious school?</p>

<p>Oh, and one more thing - I know that top students at prestigious schools tend to land amazing salaries, but I am more looking at what is the norm at those schools rather than the exception.</p>

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<p>if you are lucky enough to get into wharton you should go
with the median salaries of their grads, you should be albe to cover 80k in debt... median starting compensation (sal+bonus) is just under 100k, and after ten years the average compensation is over 400k, and thats without an MBA
<a href="http://www.vpul.upenn.edu/careerservices/wharton/surveys/WhartonAlumniSurveyReport2007.pdf%5B/url%5D"&gt;http://www.vpul.upenn.edu/careerservices/wharton/surveys/WhartonAlumniSurveyReport2007.pdf&lt;/a&gt;&lt;/p>

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<p>Never mind the title. </p>

<p>It is very doubtful that you, by yourself will be able to get $20K/yr in loans. Perhaps you and your parents can swing this in Stafford and PLUS loans. As for Gate, cosigned and other nonguaranteed loans, money is getting scarce and these loans can be seen as subprime lending. </p>

<p>Do not assume that you will make the salary presented. Remember, those who make this type of salary have gotten there because many others have failed before them and the staying power can be very short. A lot of very talented Bear Stearns employees, who made good money will soon be out of a job, because some people in finance screwed-up. Happens to be quite of few Finance people at major and not so major financial institutions who "should be drawn & quartered, slowly." Then fired without severance. If you do get a student loan, remember these Finance people everytime you make a payment.</p>

<p>take the full ride as an undergraduate, get some experience, then go the Penn. </p>

<p>The first part of your questions: Yes S had nearly this debt in the form of unSubsidized Stafford and PLUS loans. However, the loans are for 15 and 25 years at substantially less interest rate than what is being offered today. Also the total of the loans is offset with assets of high liquidity and which could extinquish the loans within a week. We are doing the Finance thing because we have the maturity and experience and the timing correct. You do not.</p>