How Much Debt Is Too Much Debt?

<p>It looks like my matriculation decision is going to come down to the public vs. private, no debt vs. lots-of-debt decision I knew it was going to be. The two choices I've narrowed down to are Vanderbilt and the honors program at U of Florida. </p>

<p>I think I'll get a lot more personal guidance at Vanderbilt, and I'm almost certain that Vanderbilt's a better "fit." The problem is that if I go there I'm going to graduate with a little over $90,000 in debt. My parents said that they can put $5,000 toward the loan every year that I'm still paying it after college, but regardless, I will have no debt whatsoever if I go to UF because of an in-state scholarship. Besides the fact that I don't really identify with the Gator Nation, I think the thing that really bothers me is how much less I could've done in high school and still gotten into UF. Even the requirements for the honors program are somewhat lax.</p>

<p>imo, if you accumulate more than 50-60k over four years, it could be considered to be a big debt.</p>

<p>Anything over the projected one year gross salary of your first, post graduation job.</p>

<p>Have you contacted the Office of Financial Aid? We have such a large endowment that I am curious if you might be able to pick up some grant money.</p>

<p>I came to Vanderbilt for many of the same reasons you listed. From my perspective, what you have seen is what you will get.</p>

<p>Good luck with your decision.</p>

<p>My own personal rule: no more than the cost of attendance for one year.</p>

<p>Unless Vandy is like your ultimate dream school and you can't see yourself happy at UFlorida, I say 90k is too much. I second the others who suggested that you contact the financial aid office. Vandy has a big endowment so they should give generous aid and might be able to bump up your aid if you negotiate a bit with them.</p>

<p>Exactly $64,397 is too much. $64,396 and you're golden. ;)</p>

<p>On a more serious note, you should put some reflection into what kind of job you are looking for. If you know you're going to be a banker or some other, similarly overpaid profession, then you could take on more debt. If you plan on working in the Peace Corp or being an "artist" or something....you might want to try to alleviate your debt...</p>

<p>Well, the good thing is that I'm really interested in economics, which seems to be one of the higher-paying majors. </p>

<p>I made an appointment with one of Vanderbilt's financial aid officers, but I don't know if we're going to be able to get any more money. I didn't even say anything about getting my financial aid package changed and they started saying how they have a formula that dictates how much money they can give, etc. I also got this financial aid brochure where half of it talks about how they won't change your financial aid package unless something really crazy has happened and you have like 5,000 supporting documents.</p>

<p>If you would rather go to Vanderbilt and be bogged down with a debt for a long time after graduating than go to UF w/ no debt after graduation, go to Vandy. Otherwise go to UF. It's pretty simple ^_^</p>

<p>Do you want to pursue grad or law school after college? If so, 90k is definitely too much. If you don't, I'm still inclined to think it's too much but that's your decision.</p>

<p>I'm graduating without debt thanks to an in-state scholarship and I assure you it's a really, really nice feeling.</p>

<p>"Besides the fact that I don't really identify with the Gator Nation, I think the thing that really bothers me is how much less I could've done in high school and still gotten into UF. Even the requirements for the honors program are somewhat lax."</p>

<p>You can be amazingly happy at a large state university without getting sucked into the local equivalent of the "Gator Nation" frenzy. Don't let that be the thing that keeps you from the U of Florida.</p>

<p>As to "somewhat lax" requirements for admission to the honors program at UF: Since you weren't on the admission committee that selected the students for the honors program this year, you have to consider the possibility that given the large number of high quality candidates competing for space in that program, your individual profile was barely good enough to get you in.</p>

<p>Whether you are the "very best" or "very worst" or somewhere in between of the honors program class of 2012, you will still be there with a whole bunch of smart, talented, hardworking kids.</p>

<p>One last thing, right now you estimate that your total loan burden on graduation from Vanderbilt will be $90k. Did you take into account that tuition and fees usually increase at a rate of 5% to 6% per year? $90k may be at the low end of what you could end up owing. Given that as of today a whole bunch of the banks that have been writing student loans have announced that they are quitting the business, just exactly where are you going to get that much loan money anyway?</p>

<p>I know, I know, I'm just another mom who says "the best amount of debt is no debt". But I truly do believe that you can be happy just about anywhere. I'm truly sorry that you are having to face this kind of decision. I do indeed wish you all the very best.</p>

<p>Here is one way to help you decide:</p>

<p>Monthly payments on $90,000 will be approximately $1,000, or $12,000 per year.</p>

<p>If your parents pay $5,000 per year, that leaves you with $7,000 per year.</p>

<p>Will a degree from Vanderbilt garner you an income of approximately $10,000 (gross) per year more than UofF? </p>

<p>If so, then it would be a wash.</p>

<p>"a little over $90,000 in debt."</p>

<p>That's too much.</p>

<p>I can only justify having 60k loan to attend harvard or princeton, anything over that is not worth it, even for harvard Undergrad. Your undergrad degree is really just a baseline degree, you need one to get started, but where you go is not really nearly as significant as many high schoolers think. And this is Vanderbilt, not Harvard.</p>

<p>I'm almost 100% sure that the requirements for UF's honors program are completely statistical. In other words, I think as long as you have the GPA and SAT/ACT score, you're in. That's how I know that I didn't barely make it.</p>

<p>By the way, I think the debt will be more like $75K. I know that's still a lot though.</p>

<p>if you are interested in economics then you should know about opportunity costs for both loss opportunities and opportunities gained, game theory, time value of money, taxes, budgeting, legaleze in contracts. Take the scholarship even for two years then transfer or go to grad school. </p>

<p>There are a lot of economic majors that do not have jobs. Or will be losing their jobs very soon.</p>

<p>Please don't put yourself into that kind of debt. It will put a huge stranglehold on your future.</p>

<p>Florida is a top 50 rated university. I'll bet the Honors College would be Top 30, very close to Vanderbilt in quality and individual attention. I'll bet the Florida Honors students get perqs, right?</p>

<p>Listen, straight up here --- too many Americans have borrowed against the equity in their homes for the past twelve years, and now that we are in a housing equity recession, the house bank has closed its doors!</p>

<p>Don't be like those shortsighted who have lost their homes... DEBT is serious business. Avoid it if you can.</p>

<p>I just wanted to bump this... a reminder that DEBT is serious business.</p>

<p>Local</a> News | Graduates drowning in debt from high cost of college | Seattle Times Newspaper</p>

<p>Well, the debt you'd aquire at vandebilt seems huge, but you really have to consider the fact that not only is it your future, it's your decision, and you have to know if you'd be happy at U of F, or so miserable you'd long for Vandelbilt the whole time. If it makes you taht happy, keep seriosuly considereing it, or choose it.</p>