Financial Aid Plan OOS

Paying for College
1

<p>I was accepted from the Waitlist to University of Michigan and If i go i will be roughly 80K in debt once I graduate. Miami gave me an opportunity to be about 20K in debt after I graduate. </p>

<p>I plan on going to Michigan and getting a job and paying off some of the debt until I get a job when I graduate. </p>

<p>Now, With this in mind, What are the best ways to set up loans to finance my education? </p>

<p>Chase Manhattan bank offered me up to 40K a year, that is at about 8% interest, but isn't paid until 6 months after graduation, any help would be great.</p>

2

<p>DON'T DO IT! That kind of debt is crazy.</p>

3

<p>I agree its pretty crazy, but the academics compared between the 2 schools, I think its very much worth it</p>

4

<p>Why?????????? What's your major? Business is the only one IMO that may be worth it.</p>

5

<p>Yes, business is my major, I'm only doing it for Ross</p>

6

<p>Have you been accepted into Ross? If not, you'd better consider that there is a possibility that you may not accepted into Ross after the freshmen year and end up with LSA.</p>

7

<p>I understand about Ross, but I believe I can be admitted as long as I keep working hard, they accept about 50%</p>

8

<p>I am majoring in Engineering ~ will declare field in Sophmore year (chemical or mining). I chose WVU over Penn State because of the money I received from WVU. I qualified for (per year):</p>

<p>a) 1 of 20 Academic Excellence L1 Waivers $8,000
b) WVU Acad Enhancement Grant $2500
c) WVU Academic Grant $1000
d) outside scholarship $1000</p>

<p>Total cost with estimated maintenance (toiletries, clothes, gas), room/board (cost of living for commuter), books, loan fee, and tuition and fees is $19,424.00 After I deduct the maintenance and room and board (since I am staying at home), it is relatively free!! I did qualify for a federal loan ~ I will take that and pay it off with my excess funds and job to get a good credit rating, and should graduate debt free. </p>

<p>I am OOS, so I am very happy with this. Penn State offered nothing in comparison!! I am leaving behind their offer and a $1000 scholarship won in 8th grade for the MathCounts competition. Their tuition is slightly more than WVU (since I am OOS). This is for one of their smaller campuses. I can't imagine what it would have been if I wanted to go up to State College for the first year.</p>

<p>I am valedictorian of my class of 272 and have high AP scores, AP Computer Science 5, AP Chemistry 4, waiting for AP English Lit, AP Physics, AP Calculus, AP Am Government, Penn State Honors Scholar with 3 college courses taken through school year, plus one more this summer. Hopefully they transfer...I tried to pick classes that would be transferrable.</p>

<p>Fortunately, I live about 20 minutes from WVU in PA and am planning to commute to save more money. Since I live within the mile limit, I do not have to stay on campus for my Freshman year.</p>

<p>I could have received an additional $3,000/year more if I signed a waiver to accept a job in WV for each year that I accept this money ~ but I wanted to leave my options open. Next year may be a different story.</p>

<p>I am taking up engineering ~ their programs have tons of money to pass out next year. They just received $3.1 million for their engineering programs. I don't know if it is for certain engineering programs, but this is why I started to consider the mining engineering. Really big in our area!! They are throwing money at this like crazy.</p>

9

<p>keep in mind the average starting salary coming out of Ross is $52,000. Average is a relative term because there are different factors to take into consideration; location, company, internships, etc.</p>

<p><a href="http://bwnt.businessweek.com/bschools/undergraduate/06rankings/%5B/url%5D"&gt;http://bwnt.businessweek.com/bschools/undergraduate/06rankings/&lt;/a&gt;&lt;/p>

<p>Lets say you make 52000 you will be expect to payout about 28% in taxes (14,560) = 37440. Then tack on about another 4000 which will be your contribution to your medical plan (as more of the cost of health insurance is now shifting to the employee. Now you are down to 33,000.</p>

<p>Do you plan to have a roof over your head? Do you plan to live in NYC (gotta go with the $ because you are not going to make the 52K in Fla straight out of college. You will most likely have to go to NYC, Boston, Chicago, LA). Housing is not cheap in these cities .Sharing a 2 bedroom apartment with one other person can easily cost you 1600 per month (not counting utilities) Now you have 1600 * 12 = 19,200 leaving you with 13,800.</p>

<p>gotta make those student loan payments (as they are not eligible for bankruptcy)</p>

<p>Your loan payments could be between 703/month over 25 years or 981 over 10 years. </p>

<p><a href="http://www.finaid.org/calculators/scripts/icr.cgi%5B/url%5D"&gt;http://www.finaid.org/calculators/scripts/icr.cgi&lt;/a&gt;&lt;/p>

<p>Lets say you want to knock this out quickly over 10 (you want to get married one day, buy a house, have kids, etc). 981 * 12 = 11,772 a year in student loan payments </p>

<p>13,800 - 11722 = 2078 for food, clothes, utilities, carfare, savings, dry cleaning, medical co-payments, etc. Yes, you will be living really large on your 39.96 per week that you have to pay for all of these things.</p>

<p>rethink your plan.</p>

<p>Thanks to Arkansasmom for posting this on one of the other threads>.</p>

<p>NEW YORK (CNNMoney.com) - Mayrose Wegmann, 25, should have been starting on her dream career as a political consultant by now. And saving toward her first home.</p>

<p>Instead, Wegmann, who graduated with a degree in political science and journalism from the University of Iowa in 2004 and moved to Washington, D.C., is working at a non-profit because it pays significantly more than entry-level politics work. And she won't even consider buying a home for several more years.</p>

<p>In fact, she won't consider much except how to meet the $300 a month she owes on her $34,000 student loan balance.</p>

<p>"The school debt makes you decide [about your career] based on the money factor. Not based on what you want to do," said Wegmann.</p>

<p>The Class of 2006, set to graduate this month, will soon be in the same boat.</p>

<p>Approximately two-thirds of all students use loans to pay for their higher education, according to the Center for Economic and Policy Research using data from the College Board. The average debt for students graduating in 2003-2004, the latest data available, was $15,622 for public schools and $22,581 for private – many students rack up even more on their credit cards.</p>

<p>As recently as 1990, only 46.2 percent of students at public schools took out loans, averaging just $9,798 in 2004 dollars. Private school debt in 1990 averaged just $15,054.</p>

<p>Call it a reverse dowry: college debt diverts careers and delays or impedes graduates' plans to get married, buy a home or even to start a family. The effects can last years.</p>

<p>A 22-year old student graduating this year who consolidates their $40,000 loan at 6.125 percent will need to pay $243 a month...until they're 52. By that time, they will have paid $47,494 in interest alone.</p>

<p><a href="http://money.cnn.com/2006/05/01/pf/...dex.htm?cnn=yes%5B/url%5D"&gt;http://money.cnn.com/2006/05/01/pf/...dex.htm?cnn=yes&lt;/a&gt;&lt;/p>

10

<p>So do you think It's career suicide to do this? I plan on working a job in college and pay off some as I go along...And that is just an "average" salary...That means others make more, and of course, less. I thank you for you complete response and would like to know, in your opinion, if UMich is worth the money over Miami?</p>

11

<p>UMich is a great school, yes, and MIGHT be worth the money if you had it in your or your parent's pockets, and it would not hinder their retirement. But, IMO, better to save the $$, attend Miami, and use the savings for B-school, at UMich or some other great program.</p>

12

<p>I have heard it both ways from everyone here and to other I have spoken with, but I was considering the national reputation that goes along with the Ross degree versus the Regional rep of Miami's. Not to mention a significantly better education at UMich...</p>

13

<p>
[quote]
I plan on working a job in college and pay off some as I go along

[/quote]
</p>

<p>This just becomes a vicious circle because any monies earned over $2650 (not including work study) increases your EFC by 50%. If you have a work study job on campus, it is not you are not going to make enough money to pay off your loans.</p>

<p>
[quote]
And that is just an "average" salary...That means others make more, and of course, less.

[/quote]
</p>

<p>The more is going to be very unlikely for a student coming straight out of college unless they are pretty well connected .</p>

<p>What happens if you happen to be one of the people who makes less?</p>

<p>What happens if you don't have a meaningful internship experience?</p>

<p>What happens if you get a job in an area where there is a lower cost of living therefore the salaries are lower?</p>

<p>Do you plan on attending grad school? Do you plan on attending law school? Do you plan on owning a car? the amount of debt you carry is going to affect your credit worthiness as you will have a high debt to income ratio.</p>

<p>I am the parent of a rising junior who wants to attend law school. What I told her to take on the least amount of debt possible for undergrad as we would not be able to help her fund law school.<br>
As I was looking through the FA section of various law schools I came across this statment at Penn's law School site:</p>

<p>Prior and In-School Credit History
Your credit history will be, and will remain, very important as you seek ways to fund your legal education. It is critical that you have a strong and clean credit record.</p>

<p>We encourage all applicants to order a credit report now to see if there are any problems that will need to be addressed before you apply for financial aid. Too often, we see students who have been reported as a credit risk by creditors, sometimes without their knowledge. Any credit problems need to be resolved before enrollment in the Law School. To receive a free copy of your credit report visit <a href="http://www.annualcreditreport.com%5B/url%5D"&gt;www.annualcreditreport.com&lt;/a>. </p>

<p>Applicants may be denied loan assistance, prior to or during law school, based on a negative credit rating or if they have incurred what lenders consider “maximum debt.”’ It is important that you consider this and manage your finances accordingly, now and throughout law school. </p>

<p><a href="http://www.law.upenn.edu/prospective/jd/financing.html%5B/url%5D"&gt;http://www.law.upenn.edu/prospective/jd/financing.html&lt;/a&gt;&lt;/p>

<p>As a parent, I would never advise her or anyone else's child to to take on $80,000 worth of undergraduate debt for her education because it would totally limit her choices for the future.</p>

14

<p>I totally see your logic and I have heard that point before regarding Penn's Law School, I do plan on going to Grad School and At Miami I can graduate in 3 years with minimal debt with a double major, then get a regional job, then transfer to grad school....what are your takes on that strategy? Logical, flawed?</p>

15

<p>Since you plan on being based out of Miami, it is your best bet to attend U of miami as they are probably much more connected to the companies in the area than U mich. Because Fla has a much lower cost of living, it would be unlikely that you start with the 52K median salary.</p>

16

<p>I thank you for all of your help sybbie, I still believe I will attend UMich, i believe my parents will help more than they say they will at this point</p>

17

<p>
[quote]
This just becomes a vicious circle because any monies earned over $2650 (not including work study) increases your EFC by 50%. If you have a work study job on campus, it is not you are not going to make enough money to pay off your loans.

[/quote]
sybbie,</p>

<p>Wasn't there just an article posted that said that this won't go into effect posted by Roger Dooley?</p>

<p>Please explain... i'd like to hear about this situation, as I just began a summer job, and didn't think it was going to effect my EFC much if at all.</p>

<p>Also, I turned down WS to go and pursue a non-WS job. WS doesn't effect your EFC, but non-WS does?</p>

18

<p>why $2650"</p>

<p>because this is the number the federal government has established as "protected income" for students. It could be used to pay incidental expenses that are not figured into the COA (cost of attendance).</p>

<p>Work study is part of your financial aid package because it's subsidized by the government. Employer pays half your pay, the government pays half. You'll get a paycheck and a W-2. Jobs are often on campus, or nearby, and flexible in terms of hours.</p>

<p>You use the money as you wish-- usually for miscellaneous expenses. Most college's Cost of Attendance estimates include a couple of categories for 'miscellaneous expenses' or 'travel' or 'books and supplies'. Your earnings can be used to defray some of those costs. Often, the work study earnings are the only part of the financial aid package that the student ever really has 'in-pocket'.</p>

<p>Work Study earnings must be reported to the IRS for tax purposes, but will not be counted against your eligibility when reported on the Free Application for Federal Student Aid .</p>

19

<p>jhum - Miami's average salary is 42K out of their B-School, compared to Michigan's 52K starting salary. Yes there is a difference, although it may not be worth an 60K difference in cost for your education. </p>

<p>Miami is a very good school, and a good B-School. I wouldn't advise the 60K+ debt to graduate. Your UG degree isn't that important, and if you are still going to go to a great school like Miami, I wouldn't do it.</p>

<p>I normally would advise people to "go with their heart, you obviously want X school, so go there!", but it's fricken 60K we're talking about here. That's an entire year's work! And Miami isn't a bad school!</p>