<p>I am going to start applying to colleges soon and was worrying that 25-30k a year would be too much for a bachelor's degree. I've asked multiple people and including a few school counselors and have had mixed responses. Is this too much per year for a bachelor's degree?</p>
<p>Yes…25-30K per year is WAY TOO MUCH for any bachelor’s degree from ANY school. Many people will use the Stafford loan limits ($27K total over 4 years) as a guideline for a manageable amount of money to borrow. Depending on your intended field of study and the job prospects at graduation that amount can fluctuate somewhat. Another decent “rule of thumb” is to not borrow more in total than your expected first year’s salary.</p>
<p>In my opinion, the maximum debt for undergrad should be the Direct Loan max…$5500 freshman year, $6500 sophomore year, $7500 junior year, $7500 senior year. Those are the only guaranteed loans a student can get in their own name.</p>
<p>Where do you plan to get the remaining $20,000-$25,000 per year of loans? YOU (The student) will not be able to take out those loans in your name on,y. Either your parents will need to take those loans, or they will need to cosign.</p>
<p>How much CAN your parents contribute annually for college? What are your GPA/SAT scores?</p>
<p>In the highly improbable (and even impossible) event that you are able to take out 25k/yr in student loans, let’s also make it that your highly improbably interest rate rate is 3.86% and that no interest accures during school (note that all three of these conditions are highly improbable).</p>
<p>Given that, your minimum payments would be a thousand dollars a month. Think about that. At least a thousand dollars every month for ten years. And in all likeliehood, that number’s closer to 1200 or so.</p>
<p>Look at the loan calculator. [FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Loan Payment Calculator - Finaid)</p>
<p>MY GPA is 3.3 and I have my Composite SAT score is 1630(580 CR, 530 M, 520 W). MY parents are willing to be my cosigner for any private loans I would have to take out. I am not sure how much my parents can put out annually for college yet.</p>
<p>SR3934…You also need to factor in your parent’s credit ratings. They may be willing to co-sign loans for you, but you/they have to re-qualify for loans EVERY YEAR. With an additional 25-30K counting against you/them in the asset/debt ratio you may very well find yourself partway through your undergrad degree and unable to borrow any additional funds to continue towards graduation. Do you really want to potentially find yourself with mid to high 5 figure debt and no degree?</p>
<p>You need to have a SERIOUS discussion regarding college finances with your parents. Determine how much they can pay per year, add in the Stafford loan amounts that thumper listed, and find a school that fits within that budget. If that means living at home and commuting to a nearby community college/directional/etc. then so be it. It may not be the school “experience” that you imagined, but read purpleacorn’s post closely and really think about it. Do you seriously think you could afford that kind of monthly payment for 10 years??</p>
<p>The goal should be to receive the best undergraduate education your family CAN AFFORD. It’s not always the best school that you can get accepted to…nor the school you WANT to attend. You face the same issue that the vast majority of graduating HS seniors face, but making a poor decision about college finances will impact your adult life for at least a decade…probably longer.</p>
<p>$25k-$30k is the full cost of attending most instate public universities. Are you looking at options like this?</p>
<p>I would suggest that you run the Net Price Calculators for all of the colleges you are interested in applying to. This will give you an estimate of your net costs to attend each school. In addition it is critical that you discuss college funding with your parents. You MUST know their budget,many willingness to cosign loans. </p>
<p>You will have to keep within their budget.</p>
<p>Are you a senior now, or are you planning to retake the SAT…or take the ACT?</p>
<p>Start at Community College and transfer in-state when done. Keep your education costs low.</p>
<p>Minimize your cost. If you have to borrow money, then you can’t afford it. Unfortunately, schools know that federal as well as private loans are plentiful. So they can charge a lot of money expecting students to find a way to pay. Thus, if you can’t afford to pay cash, minimize your expenses. Consider community college, state flagship, and living at home. You are correct with your initial question. 25k-30k per year is WAY too much!</p>
<p>MY GPA is 3.3 and I have my Composite SAT score is 1630(580 CR, 530 M, 520 W). MY parents are willing to be my cosigner for any private loans I would have to take out. I am not sure how much my parents can put out annually for college yet.</p>
<p>Harshness Alert!</p>
<p>Sorry, but your parents are very naive if they think that it’s a good idea for them to cosign $100k in college debt. </p>
<p>They may not even QUALIFY to cosign. You have to have a high income to qualify for that much debt.</p>
<p>If you’re talking to people and some are saying that it’s ok to have that much debt, then you’re surrounded by some really nutty people.</p>
<p>Do you know how much they payments would be on that debt? (which will be larger by the time you graduate.)</p>
<p>Ask your parents how much they’ll pay each year for college. It’s telling that they’ll cosign, yet they haven’t said, “hey, you don’t need to borrow that much because we’re paying XXXX.”</p>
<p>More Harshness (sorry).</p>
<p>Your stats are modest. What is your intended major and career goal? How much do you think you’ll be earning once you graduate?</p>
<p>Mom2collegekids, there is no harshness in your post. I call your statements a dose of reality. When the loans don’t get paid, the bank has no problem with kicking you out of your house with your spouse and kids. Don’t put yourself in that situation and avoid the people who are encouraging you to borrow money.</p>
<p>Yes I’m aware my GPA and SAT score aren’t the greatest haha no apology needed. I intend to either go into computer science or ecology/natural resources. I think Rutgers is considered my state school since i am in NJ and would rally like to go there but even with in state tuition the cost of 4 years still hovers around 100k.</p>
<p>With a 530 in math, I’m not sure you’ll make it thru all the math that CS majors are req’d to take. Are you aware of how much math you’ll have to take? Often, CS majors have to take Cal I, II, III, DifEq, and one or two other higher math courses. What level of math have you taken and what grades have you gotten? I would guess that a student would need at least a 650+ in math (preferably 700+) to be able to wade thru all the needed math classes)</p>
<p>Ask your parents how much they’ll pay each year. </p>
<p>What publics can you commute to? </p>
<p>Just because your flagship is $25k per year does not mean that that is your only option. Many kids can’t afford their flagships or other “sleep away” schools, so they go to their local univ and commute…or they commute to a CC and then transfer to a univ later.</p>
<p>It seems to me that you’re thinking, “Well, Rutgers is $25k per year, so that’s the minimum that I’m going to have to pay no matter where I go.” That is so not true. Most families cannot pay $25k per year. That certainly does NOT mean that they go and borrow that much!!! </p>
<p>Not only are you considering borrowing too much money, but your family may be naively thinking, “Oh, he’s going to get a CS degree so he’ll be making a lot of money.” At this point, there really is only a small chance that you’d make it thru CS. This isn’t only because your stats are modest, but the truth is that many students who start out in eng’g or CS majors end up changing majors when they can’t get thru the “weeder” classes that occur the first year or two (math, hard sciences, etc). </p>
<p>If you end up changing your major to something that won’t lead to a high paying job, your parents will flip out once they realize that you’re not likely going to be earning enough to make payments on those loans.</p>
<p>You also need to consider…the huge loan payments will limit where you’ll be able to afford to live. You may have to live at home after you graduate. But, what if the jobs aren’t near your home? And, what if you don’t want to live at home at that point?</p>
<p>A big question is what your parents can afford to contribute RIGHT NOW. If they are not in position to come up with some money towards college now, for them to take on loans of those amounts that they are agreeing to cosign with you is madness. What if you die? What if you become disabled? What if you don’t make it though the curriculum? What if you don’t find a job that can make the payments? They are on the hook just as much as you are for those loans and it can hurt them credit wise. Also, if their credit is not so good already, the terms of these loans are usually quite usurious. </p>
<p>So the big question is what they can pay right now. Yes, Rutgers is running about $25K a year. Are you saying that neither you nor your parents can come up with ANY money towards that? You have to borrow the entire amount? Have you saved any money? Are you going to be working this year, over the summer and thoughout the scool year? Even the schools that are most generous with financial aid (like Harvard, PRinceton) expect even those students with a zero EFC to come up with a few thousand a year themselves. What is your EFC? What does the NPC for, say Rutgers, say you and your family should be able to pay per year? If your family is considered able to pay the entire amount, and unless there is a very good reason you cannot (medical, catastrophic), to borrow the entire amount is a bad decision.</p>
<p>In such cases, consider commuting to a local state school or community college. Ask if there are any local schools that have been good to kids from your high school with stats like yours–your GC should know that, ask around. If you can commute, that means your parents are basically covering about $10K a year in what you would need in terms of room and board. That means you find a job to pay for your expenses like supplies, books, transportaition, and use your Direct Loan amounts to pay for tuition and fees. If you do very well, and are working towards a career path where you can expect to find a good paying job, then maybe consider transferring to Rutgers and borrowing for the last half of your college years when the odds are better that you will succeed in getting out, and after you’ve kept expenses down for at least half of your college years. Even then, getting your degree localy might be your best bet. </p>
<p>My kids have been having a tough time making ends meet after college, and that’s with some help from us, and with zero student loans. They’d be so much behind the financial 8 ball had they had to pay back loan money. It’s tough enough as it is. These loans are like mortgages these days in the time it takes to pay them back, only there is no house in the picture and they can prevent you from even getting a house with that debt on your back. As tough as things might get, at least you will owe as little money as possible if you commute and go to a state school. Believe me, it tastes so bad to pay for your education, long after it has been done with.</p>
<p>That is a lot to take out every year</p>