Debt / Loan Help

Paying for College
1

<p>Two quick questions - </p>

<p>I want to pursue a MS in Aerospace Engineering, but will end up with around $15,000 - $20,000 worth of loans. I don't want to sound like an idiot, but is $20,000 worth of debt too much to handle for a recent graduate? I don't have undergrad debt, so I have no reference. I'm assuming I'll have decent earning potential with a MS in Aerospace Engineering. </p>

<p>Also, the ~$15,000 in loans would be Subsidized Stafford Loans over two years. I know that the government would pay the interest on these loans until 6 months after I graduate. I was just wondering which of the following cases would be true:</p>

<p>1) The government will permanently cover the interest for me, thus meaning that if I could cover it immediately after graduation, I would only owe the original ~$15K (but after 6 months, I'll start paying interest on the remaining balance).</p>

<p>2) The government covers the interest for me, but then adds the total cost to the ~$15K after I graduate.</p>

<p>I realize this may be a stupid question to ask, but I want to be 100% sure before I take out a large loan with no current income.</p>

<p>Thanks for any help.</p>

2

<p>It’s the first one. That’s the whole point of a subsidized loan.</p>

<p>$15k as an Engineering major with a MS really isn’t a lot at all…</p>

3

<p>If they are subsidized loans then the government is paying the interest until you graduate or drop below half time plus a grace period of 6 months. At the end of the six months grace period you start being responsible for the interest and repayments from that date (not for any previous interest).</p>

<p>Unsubsidized loans the interest accumulates from day 1 and you are responsible for it.</p>

4

<p>Yes, I’m independent. I think FAFSA classifies all grad students as independent. It only asked for my personal financial information, it didn’t take my parents into account.</p>

<p>Thanks for the quick responses, that’s all I needed to know!</p>

5

<p>Yes I had deleted the question about your independent status once I woke up to the face you were a grad student.</p>