<p>I have been offered $46,000 in financial aid. But $35,000 of the $46,000 is in the form of loans. Good or Bad? What should I do?</p>
<p>Bad -- don't attend the college. With a financial aid package like that, you will graduate $140,000 in debt and regret it the rest of your life.</p>
<p>What was your EFC? What can your parents pay? do you have other options?</p>
<p>$35k a year i loans menas $140,000 in loans after 4 years- not an attractive offer to me</p>
<p>my EFC is $15,000. The college above I mention is Berkeley. I am interested in their business program (Haas). I have a tuition waiver for my state school, University of Maryland College Park. I am still waiting on UNC chapell hill, UT austin and UVA for Financial aid info. Still waiting for a reply for admission from UPenn. Let's say I were to be 120,000 in debt by the time I graduate, how hard would it be for me to pay back the money.</p>
<p>Check your PM.</p>
<p>You have no guarantee for Haas, you have to apply in your 2nd year, nope, my D goes to Berkeley, great school great experience, but not for $140k!</p>
<p>There is a loan calculator at finaid.org. </p>
<p>FinAid</a> | Calculators | Loan Calculator</p>
<p>120K at 6.8% would mean payments of almost $1400 a month for 10 years and they recommend a salary of @$166k in order to be able to afford it. Are you guaranteed a starting income of $166K?</p>
<p>Additionally the calculation assumes you are paying the interest while you are in college and not capitalizing it. If you cannot pay the interest each year and capitalize it your debt will be growing each year until you graduate. Assuming an interest rate of 6.8% the interest on the 30K for year 1 would be $2040 so you would either have to pay $2040 interest or capitalize it. If you capitalize it you would owe $32040 at the end of year 1. If you borrow another 30k then the interest year 2 would be 62040 x 6.8% = $4219. If you capitalize that your debt would be $66259. Borrow another 30k at the beginning of year 3 then your interest year 3 would be 96259 x 6.8% = $6546. If you do not pay it but capitalize it your debt at the end of year 3 would be $102805. If you borrow another 30K then your interest for year 4 would be 132805 x 6.8% = $9030. So if you are not paying the interest as you go along then at the end of 4 years your $120K debt has already grown to $141835. This would require a monthly payment of $1632 for 10 years and a recommended income of $196,000. Likely?</p>
<p>Remember you will also be paying taxes, rent or mortgage,
utilities - might want a few nice things like a car, vacations. Maybe get married. Maybe kids. If my kids, whom I love dearly, were thinking about taking on that much debt, i would very strongly discourage them. I don't know you but would strongly discourage you also.</p>
<p>Agree with somemom. </p>
<p>My son is a sophomore at UCB. It is not worth $140K debt.</p>
<p>wow, swimcatsmom, thanks so much for the numbers. That is pretty depressing.</p>
<p>Better to be depressed now for a few days than for the next 14 years drowning in debt. ;)</p>