Debt Free vs. Better Opportunities

Paying for College
1

<p>Hello CC- (sorry this is long)</p>

<p>I'm a long time reader but a first time poster. I just finished my first year at a decent university that I thought was everything...but have realized it is not the best fit. Now, I've been in the transfer process. Last year, my mother lost her well paying job (125K+) and she has yet to find a job again. My dad makes a fair bit of money, but there is obvious financial strain now that the income is -125K. So, last year, when i was choosing colleges, money was not a primary factor. My university from last year would fit comfortably into what my parents have saved for college. But, we all agree I need to go. So now I'm left with three choices. My parents still make too much to qualify for much from the FAFSA.</p>

<p>College A: VERY generous with academic money, (less than current school, enough left over for study abroad expenses as well as other expenses) The city that it is in is also less expensive. But, the school is very small (2200) and the opportunities for business majors are much less than the others (current school included) But, I would be set for sure with money left over. The reputation is decent, not like B and C.</p>

<p>Colleges B and C: I got a little bit from each, but they are still going to be really expensive total (56 and 53 annually) But, both of these schools have better business schools, a better size, and are in great cities. I felt like the transition to either one of them would be easy. My parents would have enough for 2 years and approx. 25K would be left uncovered (not including the fact that tuition will likely rise) Either one of them, I would have to take on debt in some form (not really sure what the form is at the moment)</p>

<p>Also, I will continue to work my current job at home (summer and holiday) and I would find a job at school. Of course, the cities that the other 2 schools are located in are expensive, so the cost of living would likely be higher as well. So, I would likely have to take out less loans with my own savings.</p>

<p>What would you do in my situation?? Is some debt worth a better opportunity and a better fit? Or should I just take it and run with it for school A (I've visited them all)</p>

<p>Thanks for the read!</p>

2

<p>Sorry to hear about your changes in family situation.
That being said, your plans should also accommodate all that you care about.
So, it seems like plan A is most viable at this point. If you do choose A, watch for internships, research and travel abroad experiences if they are offered and take full advantage of them. It really what you make out of it, with or without name brand.
best of luck to you.</p>

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<p>So your parents are okay paying the college savings. If you wanted to choose the expensive schools, you are short about 30k, right? You can take on 6,500 sophomore, 7,500 jr and sr year as Direct Student Loan if you wanted. So that would take care of a big chunk. If you care to discuss the schools you will get a better discussion. After all B and C sound same so I don’t know why you bother to differentiate. If they are super well known business schools that may help with placement so sometimes that is worth it for business major but sometimes not. What business focus?</p>

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<p>Sorry, I did not differentiate between B and C because I didn’t want the post to be too long. Concentration is international and finance. I need to get to 15? 20? posts so I can PM you @BrownParent‌ I am worried that my parents might be lurking on the website and I would feel bad because this situation has basically moved them to tears and upsets them greatly that they can’t pay for it all like they planned.</p>

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<p>I think you should think very seriously about the financial issues. You don’t say what your family income is now, but it is still less than it was. Your parents need to feel comfortable with the costs of your college education. </p>

<p>It sounds like schools B and C are too costly, and school A isn’t what you want. So…it sounds like you applied to a totally wrong list of schools. Perhaps you should reconsider…take a year off, and find an affordable,place,that you like.</p>

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<p>@thumper1‌ WOW that is a lot of posts (sorry I noticed that right off the bat! but you’re dedicated for sure!!) Family income I’m not 100% sure of but it’s probably 160K? 150K? It’s somewhere around there. While it does seem like they should be able to pay more, I have a sister with severe learning disabilities who consequently needs to be at an expensive private school as our district was not a great fit. I actually had applied to more financial safeties that I was rejected to or waitlisted. But yes, I probably did not apply to the best list of schools as I admit. I believe the loans I would take out would be parent PLUS loan. I was also given some loan money (subsidized and unsubsidied from one school, the other school was approx. 2000 per year, in which case I would not take because there does not seem to be a point when I could work extra hours and make that much to cover the loan.)</p>

<p>I just do not know what to do. If I took out the Stafford loans after talking to my parents more (or Parent PLUS) my parents are just now talking to financial advisors etc.</p>

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<p>Um…your PARENTS would be taking the Parent Plus Loan, not you.</p>

<p>In my opinion, if you need a Parent Plus Loan, the college is too expensive.</p>

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<p>Thanks for the input, yes that was a typo on my part…hence where the parent part comes in.</p>

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<p>Are you willing to take on the birders of loans as a student? A loan you are actually eligible to take out lol? Also, it might help to name the schools. Some posters would be able to give you better advice because some of them have a really great understanding of specific schools.</p>

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<p>This student has loan limits in terms of how much HE can take out. As a sophomore, the Direct Loan limit is $6500. Anything more than that will either require a cosigner, or will need to be taken out by his parents. </p>

<p>If he is planning to fund the bulk of his college costs with any kinds of loans, the school is too costly. If he takes $50,000 in loans for the next three years, he will have $150,000 in loan principal alone to repay…plus interest. Payments will exceed $1500 a month for ten years. That is TOO much debt.</p>

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<p>College A: Rollins College.
Colleges B and C: Tulane and George Washington…mom and dad sorry if you see this.
The majority of my tuition is college money saved my parents in a fund. I would have It covered in full for either of these schools for next year and junior year…some left for senior year. The loans would definitely not cover the majority of my tuition, my parents would never ever let me do that, nor would I ever think that is a smart or wise decision for most people. I would only take out the federal loans (sorry, my parents are feeding information to me as I type this, they just don’t know what I am typing.)</p>

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<p>Oh and in addition, I know these schools are very different from each other. I get that comment a lot!</p>

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<p>I take it that you haven’t borrowed anything yet for college, so you don’t need to worry about starting to pay that set of loans down six months from now.</p>

<p>Here is my advice: Take a year off. You do not need to decide between these three universities right now. This will give your family a chance to get its financial house in order, and it will give you a chance to re-consider your application list. For example, your own home state may have a decent public university that could serve your needs reasonably well. During your year off, you can get more work experience which will also be useful for you as a future business major.</p>

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<p>I wish the two related threads this poster started could be merged. </p>

<p>The aop now says that his parents have a college savings that will cover the cost of attending the two expensive schools and he would only be,taking the Direct loan.</p>

<p>OP, is this money in a 529 or other college savings account, or is it in regular savings?</p>

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<p>So sorry, I guess I didn’t “learn” the ropes of this forum. The majority (100K) is in a 529. There is another 20-25K in another college savings account from my generous grandfather. I thought I made it clear in this thread, I guess not.</p>

<p>SO: to clarify. My parents have 120-125K SAVED for college in the aforementioned sentences. The loans would come to cover the rest of the costs (an estimated 25-30K)</p>

<p>Thanks for your patience with me.</p>

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<p>Ok…so now,that the finances are clear…what is your issue? You have college savings that will cover your costs to attend any of the three schools to which you have gained transfer admission. </p>

<p>So…what was the purpose of your thread? </p>

<p>The 529 money is for your college education. Your grandparent has set up an additional college savings account for you. The Direct Loans will cover the balance.</p>

<p>So…what is the issue?</p>

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<p>The issue is that there is 30,000 left over. Is it worth taking out loans to cover that or just go to the safe school. The loans are subsidized and unsubsidized.</p>

<p>I really apologize for the confusion this has caused, and I appreciate the help.</p>

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<p>Can’t you WORK at a job yourself to reduce some of that loan debt? You should be able to earn about $3000 a year by working 10-15 hours during college, and in the summers. That would reduce your debt to under $25,000 for,the four years, right? Personally, I think that is manageable debt.</p>

<p>But Rollins is a fine school. If you can and want to graduate debt free, then go there!</p>

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<p>Oh yes, absolutely. I will work at school regardless of where I go. I have money saved now, but I will be working 35 hours per week this summer, which should definitely help a lt. It would be under 25K for four years, I guess! You’re making me feel better and less overwhelmed. I like Rollins, but I am in LOVE with Tulane…I just think that they will have more opportunities for me in the business field (although GW would be the best, I worry about the social transition going there because of the lack of campus, although it is an excellent/cool place!!)</p>

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<p>Your parents have enough DESIGNATED to cover your next two years at either the B or C school, correct? Within two years, your mom will likely find another job. No guarantees of course, and it may not be at the level where she was previously, but I agree with @thumper1‌ - I am not seeing that much of an issue. And I am a VERY debt averse parent. Does international mean IR? </p>