<p>Our EFC is coming out to be >40K. We are now considering two options. Go to the state univ with full ride or to a selective private school by paying ~40 K per year. If we decide on the private univ, we'd like to take a loan for the amount. Is it possible to take the loan in my name (my parents will stand as guarantors, and will make interest payments until I start earning)? Where can I find information about such loans? Thanks.</p>
<p>Why take out a loan for the full amount? Can your parents pay some or most out of pocket? can you work this summer and during the school year? Try to borrow as little as possible.</p>
<p>Call the school's financial aid office. They will be too happy to direct you to some nice fat juicy loans for them err you.</p>
<p>If I take the loan in my name, I'll be responsible to pay back. That is, if I want to go to private univ I should take that responsibility according to my parents. I can respect that, especially since I have the option of going to Honors program in state univ for free. I may work summer & parttime to reduce the loan somewhat, I am just looking at the worst case scenario (full 40 K per year as loan).</p>
<p>Wow, even for the very best schools on earth, I can't see being in debt $160K for an undergrad education. Do you know what you want to do career wise?</p>
<p>Honey Child OP,</p>
<pre><code> Please look towards the full ride at the state University. 160K is far too much money for a BA. Gosh, the limit of the Fed loans is 46k for undergrad, so I reckon that 160k in a fair amount of private loans would take an eternity to pay off.
</code></pre>
<p>have a nice day...</p>
<p>Our home mortgage wasn't as much as you are planning to take out for college loans. The monthly payments on loans in excess if $150,000 would be sky high. Our kid is at a private school having received a great scholarship at a state u...but it was NOT a free ride. If that had been the case, she would be AT the state u. To be honest, I think you will have difficulty getting that much in loan money for college purposes in your own name. Your parents will have to cosign the loan (you already know that) and truthfully they will need a LOT of collateral to get that loan. Does that 40K per year include housing costs, books, etc? Were your parents planning to help you with college expenses at all? If not, and you knew that going into the application process, it sounds like you have a terrific option in that state U. And from what you are saying, it sounds like you are not anticipating being eligible for need based aid, and won't be getting merit aid at the private. In my opinion, $160,000 is too much debt....also, keep in mind that the school costs $40k THIS year, and the price will increase each year you are there.</p>
<p>Throughout my application process I knew that I wouldn't be eligible for need-based, so I had hoped to go to state U with full ride, which I now have secured thanks to National Merit. Now I have been wondering if I should consider taking loans for a selective, top school education, if I take responsibility for the loan as my parents suggested. My parents also think it is not a good idea, but they are willing co-sign and pay the interest if i want to take a chance.<br>
The consensus here seems to be that the loan amount is just way too big. But I was thinking as follows: If my parents pay the interest, I only need to pay back the principal amount of 160,000. Even if I am able to earn an average of 10K more per year because of private school education, I could perhaps pay back in about 6 or 7 years after graduation by saving as much as possible. Thus, by early 30's I can be free of college debt! By the way, I am quite a motivated person, willing to work hard and planning to be in a technical field - so I hope to land a well-paying job immediately after graduation.
I sincerely appreciate all the advice given by the posters above. Any other advice/ thoughts? Thanks.</p>
<p>I have a couple comments:</p>
<p>First, you will never save as much money as you plan to. </p>
<p>Second, if you are aggressive and motivated, it may be possible to land a high paying job out of State U.</p>
<p>Third, the monthly payment on 160k in debt will be about $1700 per month. That's an extra $20k per year after taxes. So unless the private school will add more than $30k to your earning power, it's quite possibly a losing proposition.</p>
<p>Last, graduating debt free gives you flexibility. What if you are working at your technical job a year after graduation, and a buddy calls you up with a great but somewhat risky idea for a startup? A $1700 per month albatross around your neck might make you pass it up even if you want to go for it.</p>
<p>Just my humble opinion.</p>
<p>If you become the next Bill Gates OK, but if you mean being an engineer by a tech job, I don't thin the debt makes sense. Engineers make good but not great livings if they are not break away success stories. It's also one of those fields where you won't get paid much more coming from a private rather than a good public school.</p>
<p>If you had said investment banker, management consultant or corporate lawyer debt may be worth it though I'd still question $160K.</p>
<p>And while I've never before agreed with lskinner, he's right--if you're motivated you'll want to be able to go with a startup rather than a "safe" job. It's the only way you will end up making real $$.</p>
<p>There is absolutely no guarantee that you will earn more money graduating from a top school than your state U. DH is an engineer. They do not get paid by the school from which they graduate, they get paid by their degree, experience, and if they hold a PE license. P.S. He did not graduate from a "top ranking" school by any measure or means.</p>
<p>Thank you! All of you have been very helpful.</p>