<p>D1 has no debt, but she is going out with someone with 60k debt. He has a good job, financially independent, and is making payments on his loans. D1 knows our position about marrying someone with large debt, so hopefully by the time the relationship moves to the next stage he will have most of it paid off. </p>
<p>Few years ago, a friend struck a deal with her son’s school(a private school). They paid for his 4 years tuition upfront, with no tuition increase over those 4 years. She said it was the best investment she ever made - stock market tanked and tuition was going up each year. Something to consider if you already have the money set aside.</p>
<p>D will graduate with no debt, thanks to having chosen the more regional school that offered her a large merit scholarship. She could have chosen one of the top-ranked national liberal arts schools but that would have meant loans for her and loans for us–and less money for extras like private music lessons and summer travel and study abroad. </p>
<p>We left the choice up to her, and I can say that she is getting a stellar education and lots of opportunites in her area. For anyone contemplating the choice between merit aid at a lesser ranked school versus loans at a higher ranked school, please think very carefully about whether you are just buying a “name brand” or whether your loans will actually get you something of substance.</p>
<p>"Son recently decided he wants to be a theatre major. We said, “fine, but we’re not paying $55,000 per year for that. Change schools or pick a different major.” He decided to stay at the school he loves and make theatre a minor.</p>
<p>Will we help them pay off their loans? I don’t know. Maybe. It depends on what our financial situcation is in a few years. For now, they’re both operating under the understanding that they’ll be paying"</p>
<p>LOL, writestuff54, I’m sure NYU is worth the sacrifice if your D has talent and/or experience. My son has neither. Really. All he’s done is one line in one school play, and it was underwhelming. I doubt he could pass the courses, much less make a living at it. Harsh, but I kid you not.</p>
<p>(We didn’t tell him that we doubted his ability to succeed. We kept our position completely financial. Which is, we think, justifiable. He understands and is happy to stay at his school as a theatre minor.) "</p>
<p>Do people look at the interest rates prior to signing for student loans? The interest rates on unsubsidized stafford loan and any plus loan is mind boggling @ 6.8% and 7.9% respectively.</p>
<p>Am grateful to say that our kids will graduate from undergrad debt-free & it looks like we won’t be taking out any loans for them either. D has one more year to go & S is gainfully employed and so far seems to be enjoying his new job! </p>
<p>Not quite sure if either will go to grad school & how much (if at all) we could help them if they do. S’s employer has a program which pays for some grad school (or would have helped repay undergrad loans), or he might be able to get funded or partially funded grad program. S wanted to work for a while & see how things go (despite H’s urging that he get his grad degree); D has talked about going to grad school, but who knows?</p>
<p>Live at home, work, go to CC for two years (Illinois has some of the best CCs in the country). Save some money. Then stay at home and commute to one of the directionals, most of which are much better than their reputations.</p>
<p>The University of Illinois is a wonderful school. It should be affordable for every qualified student from Illinois. But it is not. And YOU CANNOT AFFORD IT!</p>
<p>Akklaus, the way it works is that the most generous awards are given freshman year. Yes, it is possible that some very few upperclassmen get some small departmental grants, but it is ever so rare that it is like winning a lottery that any given student will get enough to lower that loan burden substantially.</p>
<p>You are truly putting yourself in dire financial position for the future.</p>
<p>No loans for us or kids. Saved enough for instate publics. Told them if they wanted something different, they would have to make up the difference. Both had the opportunity to do so (one with ROTC,one with athletics) but both chose the instate publics. </p>
<p>My neighbor’s kid took loans for undergrad (at instate private college). She graduated last month. Now she is off to NYU for a grad. program paid for entirely by loans. Her program is Theater. She is not a performer. Her mom told me yesterday that her D’s monthly loan repayment was going to be more than their house payment. Yikes!</p>
<p>“Also, once you get to the university, they have scholarships for returning students. A junior that u know at Illinois received nothing his freshman year but received a full tuition scholarship his sophomore year. All of these kids are doing it; it has to be possible.”</p>
<p>Easy to find out. ASK how many students receive full tuition scholarships after receiving nothing in the first year. You will likely find out that the answer is fewer than 20 - but go ask.</p>
<p>What bank is going to give you the money? (I’d like to know, to make sure I never invest in it.) Are your parents the co-signers on the loans? Can THEY afford it? (I already know that you can’t.)</p>
<p>It is not a happy sight to see a college dropout in the making. It is worse to see one who will already have $23k in loans when he drops out.</p>
<p>Agree with the above post DO NOT START COLLEGE OWING $23K freshman year with NO aid. That puts you in a most vulnerable position with very little gained except crushing debt from a lender. Lenders are NOT your friends! MINI is giving very good & important advice as is annasdad. Most of these debts are NOT discharged in bankcruptcy and will weigh on you for a very long time!</p>
<p>I have a difficult time understanding why parents bog their own children down with student loans, if they don’t have to. I understand that I’m probably going to get hammered by some for saying this, but if you have the $, then you should pay for their UG degree…they are your kids! I know so many people who spned money on vacations, new vehicles, and just senseless things and make their children take out loans. Set an example, save and pay, so your kids don’t have to start out in debt, it will be hard enough to make their own way.
My H & I will do all we can to get our d through college debt free because we feel it is our responsibility, and part of why we feel that way is because our parents did not help us.
I cringe when I hear people complain about not being able to get more loan $. I want them to realize that there is a reason there is a limit.
Sorry, this is kind of a rant to, but I just feel really strongly about this topic.</p>
<p>My neighbors & I chatted the other day. Their kids live in a fully-paid home and have rental income coming in from tenants who live in a cottage on the property. Their grandchild will be starting college soon & I was saying that now that college is approaching and the home is fully paid for (mortgage all paid off & kids are only in their 40s), they can help grandchild with college. The neighbors looked shocked and said that the parents will probably now start saving for themselves & likely leave the grandchild to figure out how to finance college (just like the neighbor who was HS counselor & HS teacher) did to all of his kids–once they turned 18, they were all on their own but could live at home. I pondered whether they had retirement savings & the neighbors said whatever the union had negotiated on behalf of their S, who was a union worker & who knows what DIL qualified for at her fairly low-paying job. Not surprisingly to me, none of neighbor’s 3 kids went to college–one did a brief stint in the military & now works long “part-time” hours at 7-11, the other is disabled & one works as a rigger in the film industry, which has a lot of volatility & physical rigor.</p>
<p>Different folks, different priorities. I find it fascinating. H is continuing his job until after our D graduates, which is scheduled for next spring. H will have completed > 40 years at his job! Leaving the kids to figure out how to finance their college education was never on our radar! One of our top priorities has always been to minimize debt for ourselves and our kids and allow them to have a quality undergrad education so they will have many great options and hopefully rewarding careers.</p>
<p>The other problem is kids who feel entitled to choose VERY PRICEY U & say, “folks COULD afford,” while turning up their noses at other options. Some very sad & challenging dynamics flowing all around the issues involved.</p>
<p>HImom~the best case scenario you set out above with the homes, etc., was similar to what we did with our son. We had a house paid off and rented out, and we told him we could sell it to pay tuition, use the rent to pay loans, or he could have the house after graduation if he didn’t have to pay tuition. He is now the proud owner of a house that he continues to rent out for income. It definitely gave him “skin in the game.”</p>
<p>aklauss17, I’m sorry to tell you that mini is right. You can’t afford that college. Do not borrow that money. You won’t be able to pay it back. You are making a big mistake.</p>
<p>I also agree that kids (& a few parents) insist on going to colleges that they can’t afford, and are willing to to into huge debt or put their child in huge debt just to say that they have gone there.
I should add that while I firmily believe it is the parents responsibility to pay for their childrens UG degree, that doesn’t mean you should had them spending money, they need to be able to hold a job and pay for the extra expenses themselves, to help them learn financial responsibility and the importance of working for a dollar.</p>
<p>Ok, but re University of Illinois barely gives out money to it’s incoming students. How do the thousands of kids that go here handle it? I don’t know the answer to that and neither do you, but it DOES work out. I realize you probably won’t like this reply, but sooo many people do it that it HAS to be possible</p>
<p>It IS possible IF the families and kids can afford the $$$$ thru other sources (savings, affordable loans, earnings from parents, outside scholarships). There are MANY folks who do NOT apply for nor receive ANY FAid or take out any loans. This does not mean that it will work for any particular individual–each person has to look at his/her circumstances and make informed choices with ALL the info available rather than just looking at the facts they prefer to see. It’s also important to look at the cost for the total of 4+ years rather than if the person/family can stretch to pay for just ONE year–not much benefit from one year and huge debt. Many also go to CC & transfer, which is a MUCH less expensive option for lots of folks.</p>