Yup, both are unaffordable and even 158k in loans is foolish.
Don’t be foolish.
You want to be an accountant. You’re supposed to be savvy about numbers and finance. That 158k college loan, repaid at the standard 10 years, 4.8% interest, is $1,660.00/month. Your cumulative repaid is 200k, including interest of 41k. Let’s say you walk into a 48k starter job. That’s 3200/month after taxes. Minus 1660 = 1540 for rent food, transpo, a social life, clothes, gifts. Oh, I forgot food, utilities, cell.
It’s like having a 24k job. Under $12/hour.
In contrast, limiting yourself to the student loans, totaling 27k, is about $300/month.
You can “experience the world” on vacations or after getting a professional job. It won’t cost you 158k, not even close. ANd it’ll be the “real world,” not just Washington State or Southern CA.
How much can your parents pay without borrowing? What are your stats? If they can’t pay much and your stats aren’t high enough for a lot of merit you need to look at schools in your home state.
I really wish teachers would quit encouraging kids OOS dreams without knowing whether or not the cost is affordable. It’s easy to verbally support OOS ambitions if you’re not the one footing the bill.
Plug the debt amounts into this debt calculator to see the monthly payment that kind of debt requires and pay attention to the paragraph after the result grid which tells you the income needed to afford that debt.
Beyond mortgaging your future your plan carries another big risk… you may not be able to finish your degree because you can’t find cosigners able to borrow that amount of debt for you. Even if they are willing, their financial situation may change (for example they’ve cosigned on tens of thousands of student loans for your first years) and become unable to borrow enough for you to complete your degree. Just because parents can borrow in year 1 or 2 doesn’t mean they will be able to in the final stretch.
My parents will be co-signing a loan for me and I’m mentally aware of the size that it holds. I also have one savings account that is meant for college, but I am still waiting for it to mature as much as it can before I tap into it.
I was accepted into a handful of schools but looking back they are all relatively expensive:
Seattle Pacific University - 22K scholarship
University of the Pacific - 16K scholarship
UC Santa Cruz - 16K scholarship
San Francisco University - 22K scholarship
University of Oregon - 4K scholarship
Pepperdine University
Chapman University - 16K scholarship
(reminder these are all per year)
Also, I was planning on applying to the University of Texas, however, I believe that I got to their application too late.
Instead of listing the yearly amounts of your scholarships, please list the yearly costs of each school where you’ve been accepted. I agree with everyone else that the loan amounts you’ve posted are far too high for anyone at any school.
@marcaroni While those are great scholarship amounts, what matters is the net cost of attendance; what you will be expected to pay per year. You correctly recognize that all the schools you chose are expensive. As @Joblue pointed out, what is important is the cost of attendance. In your case, even after scholarships, the lowest COA is $32,000/year for Seattle Pacific.
University / COA / scholarship / Net COA
UC Irvine 60,527 / none / 60,527
Seattle U 61,608 / 22,000 / 39,608
Seattle Pacific 54,072 / 22,000 / 32,072
UC Santa Cruz 65,580 / 16,000 / 49,580
University of San Francisco 61,684 / 22,000 /39,684
Chapman University 73,182 / 16,000 / 57,182
The posters above, myself included, have pointed out that both UCI and Seattle U – and really, every university that you applied to – would require taking out enormous loans. Post #20 ^^ above spelled out what that kind of debt will mean for you once graduate and have your first job. You could end up paying more than $1,500 every month in student loan payments.
While you missed the March 1st deadline for the UTDallas automatic merit scholarships, you do have other options than going into that kind of debt. Your thread is entitled “Dream School or Financially Smart School?” but unless your college savings account is significant (we’re talking close to six figures), I don’t think Seattle U is “financially smart.”
I agree with @gearmom I find it hard to believe that your parents are fine with taking out this much debt. Do they realize that you plan to take a out a loan every year?
I don’t understand why OP only applied to schools that were ridiculously expensive. Are your parents happy to have you live with them for 5-10 years after college because you can’t afford to live on your own?
Imo, you’re just looking at short term. You want to tell friends where you’re going. Your parents agree to a big loan for first year. Now look at years 2-4 and after.
OP, as you asked: Dream School or Financially Smart School? Unfortunately, you have picked/planned for neither.
Go to community college, then transfer to state school (I have a BS in Finance, there is a much higher value quotient and ROI). Save your powder for grad school. GL.
The debt levels you are looking at are obscene.
Are the scholarships you listed merit aid, or financial aid based on need? What do the schools financial aid packages look like? Did any offer you Federal Work Study? Take an honest look at yourself and whether you would want to be a Resident Hall advisor in your Soph-Sr years to help defray room and board costs? Some of the comments here may seem harsh to you but they come from a place of serious concern about your ability to finish at your chosen school, and pay off that debt in the future. Would the HI state schools offer semesters or years on the mainland with a “sister” school?
Ok don’t let everyone’s eagerness to help you get you down. You’ve worked really hard to get into some great schools. UCs are really difficult admits.
Take a deep breath and relax. Even today you could apply to some of the schools suggested. Perhaps even for spring 2019 enrollment.
There’s even a list that comes out May 1st from the National Association of College Admissions Counselors. This list has schools that have spots remaining in their classes unexpectedly. There may be some schools there that fit the bill for you and doesn’t leave you with the bigger bill after four years.
You can also go to your local state university and apply for 2019 fall transfer to some others.
You can become a CPA coming out of any solid uni and go practice off island too
The bottom line is the bottom line. You should be able to go for much less than the numbers you posted and within schools as good or better
Get moving but know that grades that got you into two UCs will translate into a great option if you move quickly.
The likelihood of your parents being loaned that much money year after year is slim. In other words, you may end up with tons of debt and no degree - every year students are forced to drop out due to financial reasons. It’s bad enough if they have the federal loans to pay back. It’s a nightmare when they took on co-signed loans. And if your parents can’t pay that much right now, how will they be able to pay that money back? You surely won’t - the amount a college graduate can reasonably pay back over TEN years (ie, paying till you’re 32 or so) is 27k+interests.
What will you do when you can’t be approved for a car loan and can’t get to work ? What if you want to get married - will your bride want to live in your childhood bedroom (this amount in loans means no mortgage and makes you a risk in terms of renting). Not to mention you won’t be able to get any sort position with financial responsibilities as you’d be considered a risk.
Is there Any college you got admitted to where you can go without co-signed loans?
In May there’ll be a list of colleges that miscalculated yield and 99% will be on the mainland. Apply there.
I understand that taking out loans of this size is not the best financial decision, however, it was what I have after selecting schools that I have considered.
My brother was in the same position as me and is graduating from UCSB so my parents aren’t new to the idea of college expenses. I want to add that I have this dilemma because I have seen the debt accumulated by my brother and am considering broadening my options from just Irvine as a result.
There is no point in lashing me with comments that imply I will live as destitute for the rest of my life and become a giant failure in my parents eyes. I understand the burden that comes alongside these loans and don’t need negative comments that are not constructive.
If your parents took on loans for your brother CAN they take on loans for you? Check very quickly (or ask your parents to check very quickly). If they already have 80k+ in loans for your brother they may not qualify for a loan for you.
Has your brother found a job yet?
@marcaroni
The title of your thread is “Dream School or Financially Smart School?” and you posted this question:
Those of us posting here aren’t doing this to make you feel bad. We are simply giving you answers to the question that you posed. Clearly, you don’t like what you are reading. You believe that we’re making “negative comments that are not constructive.” But the comments are constructive because they have your best interests at heart. Yes, only you can walk in your shoes. But you yourself acknowledge that taking out enormous loans “is not the best financial decision” but “it was what I have after selecting the schools that I have considered.” (And you haven’t answered any questions about applying to colleges that were realistically affordable.) I don’t think any poster believes that the issue is “being a giant failure in your parents eyes.” Rather, the advice has focused on avoiding a future burdened by student loans.
It seems you have already made up your mind. I wish you the best as you proceed.
I agree with @hafamama I think you are taking what is meant as constructive criticism the wrong way because it is not what you want to hear. Please know that advice I have given you is exactly the same as I have give my own kids and others close to me. Nobody is trying to hurt you, but rather we are trying to help you look past the next four years into how huge loans would impact your adult life. But in the end it is your life and your choice.