<p>I was accepted into the University of Pennsylvania and Spelman College. I love UPenn but I was not offered ANY financial aid. I do have a sister in college but they still gave me nothing. I am in the College but if i attend I will try to transfer to wharton and complete the 5 year mba program. If I attend I will graduate with about $150,000 (give or take) of debt. This is the major reason I am hesitant about attending. Is the Ivy League degree worth the debt I would incur?
I was also accepted to Spelman College, an HBCU. I was offered a full tuition scholarship so I would graduate with no debt. I visited once and like it but not as much as UPenn. There are things on my list that upenn has that spelman doesnt. I am visiting again this weekend to see how much i actually like/love it. If I go to Spelman I am hoping to attend an Ivy League business school so I can get my mba.
Should I attend Upenn and graduate with $150,000 of debt and an mba from wharton or go to Spelman and graduate with no debt?</p>
<p>First of all, if you did not get any financial aid from Penn, your family must have the income and assets so that your family’s contribution towards your college exceeds the cost of Penn. Penn guarantees to met full need, and is one of the more generous colleges. Even with two in college, your family comes up with zero need for them. So what is the situation with your parents? How much are they willing to pay, and will they be able to pay more one your sibling has graduated? Do you have some unusual financial situation that puts you into this situation in that you have no need by Penn’s calculations? Are your parents willing to borrow?</p>
<p>The last question is rather important because as a student with no real credit history, no salary histoyr, maybe 18 or so years old, you are not going to be able to borrow on your own. You can borrow up to $5500 in Stafford loans for freshman year, but to get more your parents will have to be rejected from borrowing PLUS money, and if their bills are paid on time, they will not be rejected, and be expected to borrow the needed amounts, not you. The amount you will be able to borrow on your own for 4 years is $26K and then you are going to have to see how the loan situation works out for a fifth year if you are indeed accepted to the highly selective MBA program. You might want to check out what the cost of that fifth year would be, as well because in my experience, MBA programs do charge a lot more than ug ones. </p>
<p>So, have you discussed all of this with your parents? This is essential because they are going to have to be in the picture if you are going to borrow. Do they have some good banking contacts where they can borrow at favorable rates? Are they on board with this, understanding that they may have to help pay back this loan or even pay it back altogether? This is what is at stake here. </p>
<p>Ordinarily, in such a situation with that much money in loans, I’d just say, it is not worth it, but you clearly have parents with means, so if they work together with you, it might be an option, but please understand, they will have to take the responsibility of the loans. There isn’t anyplace that is going to lend you $150K or even the $30K it appears you need for your first year at Penn.</p>
<p>No school is worth that much debt, and you cannot get those loans in your name without a cosigner. You are generally limited to <$30K debt as an undergrad.</p>
<p>Xposted with CPT</p>
<p>I love UPenn but I was not offered ANY financial aid. I do have a sister in college but they still gave me nothing</p>
<p>this suggests that your family income is well over $250k per year. Is it? How much will your parents pay each year?</p>
<p>Spelman is highly rated. You will get the best of both worlds. Go to spelman undergrad, then penn grad. You will have the benefit of the hbcu alumni network and the ivy network.</p>
<p>I am a parent who whose kids would not qualify for financial aid in the same scenario that the OP finds herself in. I would work with my kid to afford UPenn but would absolutely not hamstring her with $100K in debt. If the parent is in so many financial commitments or problems that s/he cannot pull in the belt and come up with most of the cost, pull out some savings/investments towards the cause each year, and then borrow some of this as well, then there is no more discussion. </p>
<p>Since the shortfall is $100K over 5 years from what I gather, I think it really can be broken down to $20K a year. Forget the fifth year for now since if anyone goes for a MBA , unless family or a company undertakes the cost, it’s all loans, whether OP goes to Spellman or UPenn. That is an “if” factor anyways. UPenn undergad is $60K+ a year, so the parents are coming up with $40K a year right now for the student and there is a $10K shortfall. Perhaps they can borrow $10 through PLUS and the student had better start looking for work to earn about $5K over the year, and borrow $5500K in Staffords That would make up the shortfall. </p>
<p>I would be on board for one my kids doing that. And I think a degree at Penn with a shot at Wharton and the 5 year program is worth it. Heck, I 'd back even the degree at Penn, knowing that the Wharton thing is a pipe dream. I am taking into account that the OP;s family does have the financial resource so that their backs are not totally against the walls, though they may well be when the 4 years are up. But it means everyone living very frugally, and the OP finding work, lot of work over the summer and during the school year, and forget all those luscious vacations, trips, for free work because they need money now to pay for the school. The big problem with this, is that it is very painful and most families and students used to living a certain way find it difficult to do. I know this , because I am living it.</p>
<p>My son was admitted to William and Mary and Northwestern but, received a joke of a FA package, most of it loans and work study (which is not guaranteed), very little in the form of grants and scholarship money. These schools would have left him in debt to the tune of $70 to $100k after 4 years. This debt is ridiculous and unmanagable for a student only graduating with a Bachelors degree, your starting earning potential will not be able to afford the loan payments and the costs of establishing your new life (you will be living with you parents until you are 30+). So, let’s be realistic, more and more young people in the workplace have graduate degrees which means to compete for that elusive good paying entry level job, additional debt, ie gradute degree, will be necessary. Long story short, my son took a Full Academic Scholarship to a good but, admittedly lesser university which he will graduate with $0 debt and he can take out loans for his graduate degree. If, and I hope this is not the case, he decides not to go beyond his Bachelor’s degree, there is not the pressure to attain the elusive high paying entry level job and he will be able to take the job that is best for him.</p>
<p>I agree with posts 3, 5 and 7. You are talking too much debt.</p>
<p>The last degree you earn is the most valuable. So, go to Spelman for undergrad and do an excellent job. Then, go where you want for Grad School and use the debt for that.</p>
<p>100k is way too much debt.</p>
<p>I graduated from Penn…Go to Spelman for free…Penn is definitely not worth that kind of debt. Its not Harvard or Yale…Besides that, everyone admitted to the college have dreams of being admitted to Wharton…Few succeed…</p>
<p>Seriously ppl, could you imagine being 22yr old and being $100k in debt? Heck, I am 40, own a house, 2 new cars and have a son going to college and 2 young ones in private school and I am below $80k in debt which I am not thrilled about…how is that gonna work for your kid making $40-$50k yr… maybe</p>
<p>I was $100k in debt, but that was a mortgage on my house. When I came out of grad school, it was a lot less than $100k (adjusted for inflation). Can’t imagine coming out of undergrad with that much.</p>