^Are you asking $40,000 in addition to the $27,000 federal loans, or total (ie., parents shouldering about $13,000 in loans over 4 years or about $3,000 per year?.. or parents shouldering $10,000 loans per year?) Not at all the same thing.
@MYOS1634
The parent says, “I really mean we can’t take on any more debt”
So it sounds like the parent intends on the STUDENT to take on this debt…and the parent thinks that there are “no worries” because payments would only be 10% of salary. That 10% of salary would ONLY apply to a small portion of these proposed loans.
The child is wanting Smith and it sounds like the family will have a substantial unaffordable EFC, so the majority would need to be borrowed by the student in order to attend (parents cosigning, I assume). If they opt for that route, they need to know that the 10% of salary would NOT apply to those loans. and the 10% doesn’t apply to Plus loans either…even tho those are federal loans.
That said, even tho the 10% of salary can apply to the $27k total borrowed for undergrad, that should not be taken lightly by anyone who would be pursuing a major that is not likely going to lead to a well paying job. The 10% is of gross salary, which can still be a painful amount to someone who is barely covering living expenses.