Graduating with 100k+ in debt

Paying for College
1

<p>I am a freshman in college and currently go to a state school as an out-of-state student. I originally committed to this school because it was the best school for Business Management of the ones I applied to and was the closest to home (only 45 minutes away). </p>

<p>The problem is, this school costs 37,000 a year to attend. I have a 10,000 scholarship from the school as well as a 1,500 scholarship from my highschool. That leaves me paying approximately 25,000 on my own, as my parents refuse to help me. My parents make a decent income, so we're "too rich" for financial aid, but what FAFSA doesn't consider is the 20,000 of debt my parents in, which is one of the main reasons they won't help me out.</p>

<p>I'm currently paying the remaining 25,000 of my balance using loans from Sallie Mae. However, I'm becoming very concerned and very quickly. I will graduate with over 100,000 of debt, and it will be closer to 200,000 of debt if I transfer out of my school's Arts and Sciences program and into their business program (my scholarship only applies to Arts and Sciences). </p>

<p>I know I'll never be able to pay this off. I've applied to more scholarships than I can count, have worked various minimum wage jobs that have helped me in absolutely no way towards paying for college, talked to financial aid officers, etc. and nothing has helped me decrease these costs. Needless to say, the job market is so crummy that my chances of finding a well-paying job immediately after graduating are slim.</p>

<p>At this point, transferring isn't even an option. Most of my credits won't transfer from my current school in NJ to schools in my home state of PA, so if I did transfer I'd be wasting even MORE time/energy/money retaking classes. I can't commute because I don't have a car, have less than a hundred dollars to my name, and once again, have parents who refuse to help me. I can't save up for a car even if I wanted to because all of the money I earn now goes towards bills/living expenses/school. </p>

<p>I really don't know what to do at this point. I'm frustrated and I feel as though I've exhausted all my options. Anyone have any advice or suggestions? Anything is appreciated at this point.</p>

2

<p>A lot of what you are saying makes no sense to me. You are a business management major at a state school in NJ, and you are saying that most of your credits will NOT transfer to state schools in PA? What courses are you taking that won’t transfer over? I know kids going to a lot of PA schools and they’ve had all kinds of credits transfer over. </p>

<p>I also do not understand how you got so much money to borrow as a freshman. The STafford limit is $5500 and if you don’t have need, you sure as heck aren’t going to get any Perkins loans, and your parents would have had to have applied for a PLUS (parent loans), filled out FAFSA, giving out all of their financial and tax info to do all of that, for you to have gotten another $4K from Staffords for a PLUS decline. Also, any private lender would have asked for a cosigner with credit. So how the heck did you pay for that first year? Aunt Sallie Mae would not have given you all of that money. Nor Uncle Sam.</p>

<p>If you are truly busted, then you come home and sit at home. I guess become your parent’s housekeeper since you can’t go anywhere. Maybe look for some on line courses that you can do from home. If you know anyone who can help you regarding rides for a job, start working in that area. Your problems are not going to be solved by college. You need to get independent from your parents. You have no way to get to work, to a store, to school, nowhere and you are now an adult. That is a serious problem. Apply for the Job Corp, for Americorp, maybe the military, if getting out is a true issue. Otherwise, as I said, stay at home and look for on line options. Find some friends or former classmates or anyone going to a local college, community or otherwise and get a rideshare to the school each day. Try to find a job on campus so you earn some money while there and basically make arrangements for a ride there and back each day. </p>

<p>I am very curious as to where you borrowed your money with no help from your parents. I’m sure a lot of other students are too.</p>

3

<p>Transferring is always an option. Pick up the phone and call the community college closest to where your parents live. If you finish your associates degree there, you will be able to transfer into some 4-year university to complete your degree. Yes, it will take you longer than you might like, but it will be much less expensive.</p>

<p>And I’d like to know how you got all those loans too. If your parents didn’t co-sign, who did?</p>

4

<p>My SIL lived on the NJ/PA border and there were a number of PA state school choices including community college. I just cannot imagine that they won’t take Business major courses from any college as transfer credits.</p>

5

<p>I’m puzzled by a couple things. First, why would none of your credits from this school transfer? New Jersey state universities don’t teach a curriculum that’s unique to New Jersey. And I would think that freshman year you’re taking classes to meet gen ed requirements, and these are the courses most likely to transfer. Have you actually contacted a few of the schools in PA to which you’d be interested in transferring to make sure the courses won’t transfer? Second, if you chose this school because it has the best business management program, why are you not in the business school? Did that require a special acceptance? </p>

<p>I think if you do some more legwork you should find that you’ll be able to transfer your credits to a less expensive school. $100,000 is waaaay too much debt; I’d get off that train now if I were you. If you truly can’t transfer, how about taking a leave of absence and working until you can buy, insure and maintain an inexpensive used car? Then you can live at home, commute and trim a number of your costs.</p>

6

<p>cptofthehouse - Stafford loans and Sallie Mae are not the same thing. Stafford is a federal loan. Sallie Mae is a private loan. And I should have clarified - my mom did cosign on the loan. Doesn’t mean she’s going to help me pay it. I’m 100% on my own for that, and that’s what I mean by them not helping me. Also, I’ve looked into transferring, and Penn State won’t accept me because it’s already past their deadline for applying and by the time I do apply, I’ll have had 3 semesters of college and they don’t accept transfers who have more than 2 semesters of college. Temple won’t accept most of my credits, and a lot of the ones they were accepting were only going to be treated as electives, which would basically give me less credits and make it so that I would have to spend even more time and money in school. Sure, there are other business schools, but those were among the top ranking ones.</p>

<p>Beth’s Mom - I am taking all of my business classes in the Arts and Sciences program until I am accepted into my school’s business program (won’t hear back from them until June).</p>

7

<p>

If you default on the loans, they will go after your mom.

I could not find that on Penn State’s website. Please show me where?</p>

8

<p>I looked at the site and they definitely take more than 2 semsters at Penn State. They also have a great tool where you can put in where the transfer credits are from, the department and course number and it will tell you if the credits will transfer - so there is no guessing on what will or won’t be accepted.</p>

9

<p>4kidsdad: Defaulting on my loans would ruin my credit and come on, that would be terrible to stick that on my mom. njmissy13: Please go look at PSU’s business school requirements. Under Smeal College of Business, verbatim, “No transfer admission into any program in Smeal College for applicants who have completed 3 or more semesters of college coursework.” So applying there next year is out of the question.</p>

10

<p>Penn State takes a lot of transfers after the second year. In fact, you might want to check out your local satellite campus where you can commute and get auto admission after sophomore year to main campus or Behrend. There are also less pricey PA state schools like Kutztown, Milersvile, etc. Penn State and Temple are priced much higher. </p>

<p>Even as you are writing this, you are applying to the business school at the OOS NJ univerisity which means your costs will go up even more. If you are truly worried about this, you should be looking at the local CCs. One year there should not cost you much if you commute, and then two years at one of the smaller PA state schools should do it If you major in accounting, you’ll likely get a very good paying job and that would make the sting of paying that $25K you have already taken out a lot less.</p>

<p>I think the fact that your mother cosigned that thing makes it a far cry from parents doing nothing. I wouldn’t have done that.</p>

11

<p>Abrown, you need to get off this merry-go-round. Really. Business management is a very common major and doesn’t usually get you a high-paying job right after graduation. If you were my kid, I would suggest you stop attending school, get a ft job and save for a car and tuition. Aim for a job that will help your resume. During the year off, apply to instate colleges and see what credits and financial aid they give you. Don’t shut your options without even trying. If you need to continue at the school where you are attending, you can do so pt while living at home and boosting your resume with real business experience. You might also look to see if there’s any chance that your NJ state school is one that will allow you to establish instate residency if you support yourself for a year. If so, quit now and try to find a job in NJ, while living off campus. Either way, in a year, you can return to school pt while earning a degree.</p>

12

<p>Just re-read your original post and saw this: “My parents make a decent income, so we’re “too rich” for financial aid, but what FAFSA doesn’t consider is the 20,000 of debt my parents in, which is one of the main reasons they won’t help me out.”</p>

<p>If you knew up front that your parents couldn’t help you out because they owe $20,000 what on earth made you think that taking on $25,000 for just your first year of college was a smart thing to do? You now owe more than they do, and they are the grown ups who “make a decent income”.</p>

<p>You need to take a leave of absence from your current college/university, and get yourself sorted out before you borrow any more money. If you can’t stomach the thought of going to a community college for a year or so, well then don’t. Get a job, pay down part of that note you’ve taken on, and apply to other places that will fit better into your family budget.</p>

13

<p>OP, if you want to go to Smeal, your best bet at this point is to transfer to one of the satellite campuses (preferably one to which you can commute to save costs), finish up your first two years there, and then transfer to University Park. I think it would be easier to get in from a satellite campus than from another institution. I suspect you’re being overly pessimistic about your ability to transfer credits. This may require taking a break from school to work and save for a car or save up some funds for tuition, but in the scheme of things that’s not so bad, and it’s certainly better than continuing to rack up the debt.</p>

14

<p>I think maybe using some very basic tenets of your major might be in order.</p>

15

<p>CC is not an option for me. My GPA is a 3.5 in college and my HS GPA was a 4.4/5.0. While I’m not trying to put myself above anyone else, I’m not going to kid myself into thinking I belong at the local CC where at least half of the student population just barely finished high school with passing grades. Likewise with Kutztown and Millersville. They’re not terrible schools but they’re not regarded very well, as the average Joe with a 2.0 GPA could’ve gotten accepted into them. A degree from either of those schools won’t get me nearly the type of job that a degree from a “better” school could get me. Personally, I couldn’t care less about the school’s image but the rest of the world, including future employers, do care. </p>

<p>As of right now, I’m waiting to hear from an academic adviser from my current school about what they think I should do along with talking to advisers from TU and PSU then making a decision based off of their recommendations and what I feel would be a better choice for me. Thanks for the advice to those that posted, and cptofthehouse, thanks for condescending with comments like “I think maybe using some very basic tenets of your major might be in order.” I appreciate the wisdom.</p>

16

<p>I, for one, was not suggesting that you get your degree from a CC or Kutztown or Millersville (although I know some smart kids who’ve graduated from the latter two and done well for themselves). I’m suggesting you do your next year someplace where you can commute and save money, and then transfer to University Park. Your degree would then be from Penn State. My understanding is that it’s easier to transfer into Smeal from satellite campuses than from other schools. If that’s not the case, then try to transfer in now. But continuing where you are is not going to work out well.</p>

17

<p>Abrown, you don’t need to go to a cc. You could take a leave of absence, get yourself on stable financial footing and work your way through your school. By the way, I know what I’m speaking about. One of my kids graduated from a very prestigious school while living at home and working. We just couldn’t afford a private school tuition plus room and board. Another of my kids took a year off in the middle of the degree and took a job. That job looks great on the resume. They’re not even business majors. Really, you could turn this challenge into a positive by getting a job that helps advance your career.</p>

18

<p>Heh, heh, can’t apologize, because I am not one bit sorry about my snark in this case. You are studying BUSINESS MANAGEMENT. That is not exactly an uncommon major and there are every bit as many of them pounding the streets for work or working for not a living wage as any general major. Go into accounting and get your CPA designation, or if you are in an engineering or other program where the numbers for getting a good paying job pretty easily, and it’s a whole other story, though, frankly, $100K is even up there for those positions. My son went to a 25 university with a top Comp Sci and Engineering school, and a lot of his friends were unpleasantly surprised to find that the jobs were not lined up for the picking for them after all the “How Great We Are” hype there. In all fairness, within two years, those guys were employed, but most were still not exactly rolling in money either. If you don’t have family to help out, it’s a tough go getting started in the work world and you do need money for up front for a lot of job opportunities. You find you are not at all on a level playing field with those every bit as capable and with parents that help subsidize and for those who don’t have Aunt Sallie Mae bugging them for the payback with the meter running all of the time. Also, you might not have the same opportunities for hire either, as companies in security, government, and financial services do not like to hire people with high debt to income ratios. It leaves them more open to fraud, stealing, cheating. It’s just a fact of life, and most companies, the ones with the better jobs, any ways do want that credit report so they will see. $100K+ is a big burden on a 22 year old’s back and it’s not like you will be commended for having it. Like me, they may well wonder about how you are using your business management knowledge to your own personal life. </p>

<p>I don’t know a single state program in NJ, and very few indeed that are so much better to be worth that kind of debt. I know a lot of intrepid young (and older) folks who graduated from West CHester, Milllersville, Shippenburg and the like, doing just fine. If someone at your current school tells you different, I’d be glad to have a few words with them. I can tell you straight out it’s not worth the extra cost you are putting on yourself. If your parents are going ot help you out, like truly be on board with this, it’s a whole other story, and even then that’s a lot to be owing at any age. </p>

<p>My DH’s coworker has a set of twins: one went to Brandeis, one to a SUNY, both business/econ majors, both still pretty much under/un employed as they have been for a few years. Both were good students at their respective schools. The third child is already working----CPA program, barely got through, and the degree from a school with pretty much open enrollment, I can’t even remember the name of it. For most people, it makes very little or no difference. So seriously consider discussing the fields where there is more opportunity for good paying jobs when you discuss the situation with your advisor. You have the grades right now to have a shot at getting into such programs. Sometimes you can’t even get in, because the word is out and those spots fill up quickly. Most of the world, including future employers do not care than much among schools unless it’s Princeton you are talking about vs Millersville. For a SUNY campus or a Rutgers Campus vs Penn state, no difference AT ALL. For the smaller PA schools, hardly a difference. A lot of my family who live in PA go to state schools there. As someone who knows a lot of people who hire, it’s not going to make that big of a difference or even any. Absolutely not $100K+ and that + is relevant because by the time you pay this all pack it will not be $100K but a big $100k+. Do the math.</p>

19

<p>Is the OOS school in NJ Princeton? They don’t have a business management major, only economics.</p>

<p>Son was an economics major at p’ton. He too had a high GPA but did not think it was beneath him to take courses at our local CC, or our local 4 year university. He also took classes at an OOS public during the summer on a full scholarship…classes that were not offered at p’ton.</p>

<p>His senior thesis did not transfer, nor junior paper, nor his economics seminars to the local 4 year for his second degree (p’ton doesn’t allow double majors) but he did have enough AP units to more than make up for what didn’t transfer.</p>

<p>Do you have any AP units that can transfer?</p>

<p>I did not cosign any loans for ANY of my children. And I could not help with any of their expenses. Just hugs and kisses!!</p>

<p>Unless that $25K loan is for p’ton for econ major with the hopes of a high paying summer internship in i-banking or private equity, I would advise you to re-think your plans.</p>

<p>Kat
son’s fellow econ majors were able to make $20-$30K for their summer internships, that is the ONLY reason I might be ok with the $25K 1 year loan amount</p>

20

<p>OP states that s/he goes “to a state school as an out-of-state student” which means it’s not Princeton. And I didn’t read about the OP getting any $20-30K summer internships either. It looks to me that the money flow is going entirely the other direction with the school wringing the poor kid dry to the point where s/he has to go to the money well and borrow. I wonder what the interest rate on those loans are. PLUS is close to 8% and that is not what these are, but are “other” Sallie Mae loans with both student and mother signing. Makes no business sense to me at all, but with a major that has very good employment possibilities and salaries, it would still be doable. But we are talking about a general BUSINESS MANAGEMENT major at a state school and a kid who will be owing $100K upon graduating with the interest meter ticking from the instant those funds were released each year, which may put even the initial outstanding amount at graduation over the $100K mark. That’ s pure insanity. </p>

<p>If the OP could be making that kind of money over the summer, s/he wouldn’t be needing to borrow that kind of money. I guess a very good question to ask is what that school is bringing in terms of summer money right now. Pushing everything back to later is really not a wise thing to do. That degree is not going to instantly get you a job. With some courses of study, as you can see, the monetary benefits are quite clear. Right now YOU are paying THEM with little visible return. I’m not sure what the school is going to advise you as you are a paying customer. They MAKE money off the likes of you. Sending you to enrich another school is not going to be to their best interest. I’d love to have students like you in my school or anywhere, paying what you are.</p>