<p>I got accepted into St. John's University's 6 year pharmacy program. Everyone, including my parents, are pushing me to attend, BUT I'm not sure if it's worth the debt I'd have to take on. The est. cost of attendance is $55,506, and this is the package they gave me:</p>
<p>Health Professions Loan - $2,000.00
Federal S.E.O.G. Grant - $1,500.00
Federal Work-Study - $3,000.00
Fed Direct Subsidized Loan - $3,500.00
Fed Direct Unsubsidized Loan - $2,000.00
Federal Direct Parent Loan - $25,579.00
St. John's University Grant - $7,377.00
Federal Pell Grant - $5,550.00
Academic Achievement Award - $5,000.00</p>
<p>As you can see, it mainly consists of loans. I don't mind taking on the $5,500 total in Stafford loans, but it's my parents that I'm worried about. They told me it's fine for them to take out the $25k loan PER YEAR (for 6 years), but I feel terrible about it. Of course, once I'm out of school and all, I'll pay off the Parent PLUS Grant myself, but is it worth it? I really want to go into pharmacy. With the 6 year program, I'll save about 2 years, and I wouldn't have to take the PCAT. Thoughts?</p>
<p>How would you expect to be able to pay off a total of $186,000 in loans (even more if tuition increases, which it surely will) on a pharmacist’s salary? Hopefully one of the regulars on this forum will be be kind enough to calculate the monthly payment that would be required so you can see how this is not a remotely feasible plan unless you win the lottery.</p>
<p>The parent loan is in your parent’s name and is that person’s responsibility. Do bear in mind that the loan starts accruing interest from day one and it is not a great rate for these days. Around 7-8% or more I believe and it keeps right on ticking. If your parents feel they can handle it, and you can see that they are able to pay it, or maybe not even take out all of it, that’s their business. It’s their financial responsibility to pay for your college. It’s their means that are examined, not yours. However, the school is being forward putting that loan in your package since it is not an auto loan. They will have to apply, and if deemed not credit worthy, they may not even get it. I suggest they start doing the numbers. Also PLUS will ask for payments within a month or so after the money is dispensed, though they will defer them and roll the interest into future payments. It will be on your parents’ credit records. </p>
<p>The program is a good one, and the job is a reliable one. However, kids change their minds, costs go up and parents sometimes don’t qualify for the loan in future years. They have to reapply and re qualify every single year. It’s very nice at age 18 for you to magnanimously say you are going to pay it off yourself, but do you have any idea how much that is going to be? It’ll be a house payment by the time the interest accrues, only without the house. Pharmacists do all right but not that well as starters. </p>
<p>What are your parents’ financial situations? Do they understand the ramifications of this. I am not saying this is out of the galaxy crazy. People do this all of the time and often with good reason, and it works. But to plunge into the obligation without full knowledge of the dollar amounts, obligations and ramifications is totally insane. Your parents should also see if they even qualify for PLUS. My son’s girlfriend was all set to go to Catholic U since mom and dad said they’d pay–depending on PLUS and they failed to qualify for the loan when they finally went through the application. </p>
<p>I hate it when schools put federal funds in the package in a way that it looks like the school itself is giving the student the money, and hate even more when PLUS is included in any way other than a possible option for which the parents have to apply just like any other loan.</p>
<p>This sounds like too much debt for your parents, but maybe they can easily afford it? But, if they could easily afford it, then why would they need to BORROW that much NOW???</p>
<p>**WAIT a MINUTE…you’re a full PELL student **…which means your family is LOW INCOME. How the heck can they afford 150k in debt??? No way. Your parents have stars in their eyes and dust in their wallets. You need to be the adult here and say no. </p>
<p>BTW…some of those grants will go away once you’re in the PhD part of the program…Pell, SEOG, and maybe even some of St JOhn’s grants will go away after 3-4 years…so your parents would have to borrow MORE!!!</p>
<p>once I’m out of school and all, I’ll pay off the Parent PLUS Grant myself, but is it worth it?</p>
<p>This is just too much debt. PharmDs do make good money, but this is too much debt. And, what if you get into the program and change your mind about your career? Pre-pharm is like pre-med…many kids get weeded out, don’t make the grades, or find out that they want a different career.</p>
<p>Your parents may not qualify for those PLUS loans. They have to apply to them and their credit records will be checked. Even if they qualify, I agree with Momoftwocollege kids that this sort of loan burden is ridiculously too high for a family who qualifies fro full PELL. If you are a NY state resident, you may apply to TAP, and some other programs for low income students and may get more grant money that way, but that still is not going to cover the $25K PLUS and you are already being loaded up with a lot of student loans. Also, yes, you will not be eligible for certain UG monies when you hit the graduate part of the program. And half the kids I know do drop out of this sort of program. You are young, and people change their minds. ANd so they should. That will leave you at a school that has offered you very little in aid that costs a lot of money and will cost you even more in loan and interest in the future for a long time to come.</p>
<p>It appears that the loans to you are $7,500, which (assuming they are the same for all 6 years) will be $45,000. I have a sneaking suspicion your financial aid package will change once you transition from the undergrad to the graduate portion of the program, but if it does not, $45,000 is reasonable for a person paying a PharmD program.</p>
<p>HOWEVER. If your parents are expecting you to ALSO pay off the Parent PLUS loan, that is an extra $150,000. $195K is far too much. Your parents should only borrow the PLUS loan that they can afford to pay, without expecting YOU to pay it. And if you are full Pell eligible, it does not sound like they can afford to pay off $150,000 in Parent PLUS loans.</p>
<p>Are you an NYS/NYC resident? Why don’t you consider going to a CUNY college or a SUNY? You can attend for 4 years and just go to pharmacy school afterwards. Many PharmD admit students after completing 2 or 3 years of undergrad.</p>
<p>My parent aren’t expecting anything from me. I believe they have savings, and they can pay month to month. Does anyone know how much they’d be paying per mth, by the way? Thanks in advance if you do!</p>
<p>Anyways, I only want to help them with the loans they took out for me in the future. Being a daughter, I feel obligated to help them. Not with all of it, but a doable amount. Do you guys think it’d be a good idea? Either way, pharmacy schools going to be expensive. I’m saving about 2 years, and as they say… Time is money…</p>
<p>This doesn’t sound feasible to me. You may not even decide to stay in pharmacy. Many people change their majors or career ideas. Look for a good science education that you can get mostly paid for - state school perhaps or a good college that meets 100% of need. If you do well you may be able to get more aid for the pharmacy degree later. Seriously - no on this.</p>
<p>The problem with PLUS for a family who cannot possibly pay the amounts and are counting on the student to pay them is that if something happens to the student, the parents are still fully responsible for the loan. Morbid subject, but something that needs to be taken into account when a family is already in tough situations due to finances. it is also nigh impossible to discharge those loans and since the feds have the money, they can reach right into your parents tax refunds, garnish wages, very, very easily. </p>
<p>If you go private loans, they will be the students’ AND the parents’ obligations as long as either is around. They tend to want payments right away and deferring them is not as easy, not to mention interest rates are not that great. Parents who are PELL eligible may find it difficult to qualify.</p>
<p>The other thing is that if you are 18 years old, the chances that you may want to switch out of the program or not make it through are not small. I know a bunch of kids did not stay in these 6 year programs and some of them were top students well prepared. </p>
<p>I agree that someone going to a such a program who will stick it out can probably take up to about $75K in debt, maybe. You have to understand that it is a whole other story for those who have family that can step in and probably help out financially at the rough spots in these roads. And there will be rough spots. But to take a family making little money as it is and expect them to take on more debt, and for a student to take on this kind of debt without family back up is insanity. </p>
<p>My son’s ex girlfriends went to a Pharm program after 2 years of undergrad. DId 2 years at a private college and transferred to a state program.</p>
<p>Kpharm, you have gotten all the grim warnings. My advice is to do the very best you can at a state school where costs are truly affordable and then transfer to a Pharm program once you show you can do the work and still want to do this. At that point, you’ll have two years of college under your belt. Find an in state Pharm program and the costs will be much less overall. Even with 2 additional years in the mix.</p>
<p>But if you want to pursue the path you are proposing, you see the pitfalls. I don’t know if your parents will even qualify as co signers, great credit or not at PELL eligible income levels. They may not even qualify for PLUS. I know a sweet young lady who is now commuting to college this year after the parents did not qualify for any loans, PLUS or private and could not come up with the money the school wanted from them. I saw her the other day and she told me that she must have been insane thinking they could afford those amounts. They are all now struggling as it is with less than a quarter of what that other school was asking, and she is taking a year off to earn some money to pay back what loans were taken privately. Now that she is in the situation, not just sitting there with all the hype, momentum and pressure of graduation and “where are you going?” , she and her parents can see things more clearly.</p>
<p>*My parent aren’t expecting anything from me. I believe they have savings, and they can pay month to month. Does anyone know how much they’d be paying per mth, by the way? Thanks in advance if you do!</p>
<p>Anyways, I only want to help them with the loans they took out for me in the future. Being a daughter, I feel obligated to help them. Not with all of it, but a doable amount. Do you guys think it’d be a good idea? Either way, pharmacy schools going to be expensive. I’m saving about 2 years, and as they say… Time is money…*</p>
<p>Something isn’t right. How can your parents have much in savings if you’re a 0 EFC student? I’m not saying that they don’t have any savings, but typically 0 EFC people don’t have much in savings…just enough for emergencies and such. Not enough to justify that much debt.</p>
<p>To a student, having $15k or whatever in savings may seem like a lot, but that’s nothing…especially if some would be needed to make monthly loan payments while you’re still in college. </p>
<p>If your parents really are low-income (and didn’t fraudulently pretend to be to get aid), then I highly doubt that they can afford to pay back much/any of that debt. you’d be on the hook for all of it.</p>
<p>This is such a bad idea…no good reason for this route.</p>
<p>I’m sure my parents put away a little amount from each paycheck. Not enough, but it’s been accumulating for awhile. What do you think the chances are of receiving more aid from SJU? Giving this opportunity up is going to be extremely difficult for me and my family, so we’re looking at all our possible options.</p>
<p>Don’t rely on “I’m sure that my parents have put away money”. That doesn’t mean that the money is for college. That’s probably for RETIREMENT or emergencies.</p>
<p>Ask your parents how much they have saved. Whatever that amount is…do not assume that more than about 10% can go for YOUR college costs. So, if they have $50k saved, then suppose that they can spend about $5k on YOU. no more…they need the rest for THEIR needs.</p>
<p>Contact SJU and explain that you’re a 0 EFC family and that while you’re grateful for their offer, you would need a lot more for it to be affordable. Tell them that you will enroll IF the school becomes affordable.</p>
<p>OP, do you realize that attending that school would mean $1,200 A MONTH in Plus repayment ALONE – just the plus loan that your parents would have to sign. Never mind all the other loans that would be YOURS. That’s over 120 months - 10 years. Over 25 years, it would drop down to $765 – that’s a MORTGAGE PAYMENT for most people in your parent’s income bracket.</p>
<p>To qualify for full Pell, your folks must make less than 40k a year, I believe. That means they take home likely less than 3,000 a month – possibly even 2,000 a month…there is just no way on earth that repayment would be a viable option for them – or you.</p>
<p>Plus, with that kind of debt load, they’d NEVER qualify for additional credit in case of emergency. Eg. medical bills, operations, a wedding, a needed vehicle replacement – because the lionshare of their “ratio” for debt would be absorbed by the student loan!</p>