How much debt is UPenn worth?

College Search & Selection
1

<p>I was accepted ED to University of Pennsylvania and with the current financial package it looks like I would have to take up to 90k in loans. I plan to double major in English and International Relations in the College of Arts and Sciences. Is 80-90k in debt worth a UPenn education?</p>

<p>Other options I'm considering are a 25k scholarship in the Tulane Honors Program with a possible full scholarship. I was also planning on applying to GW, American, BU, Johns Hopkins, and Tufts if I was not accepted to UPenn.</p>

2

<p>No, 90k in loans is not worth it. That is completely insane.</p>

3

<p>It all depends on how much you like the school, and if you can get a high GPA. You may also be able to apply for more scholarships. I personally would go ahead and take the loans if the major is lucrative enough.</p>

4

<p>No undergraduate degree is worth $90K in debt. It will take you 20 years at least to pay that off. You’re better off at another school where you can graduate debt free and do very well.</p>

5

<p>You can’t borrow that much without a qualified co-signer. If you are eligible to file the FAFSA, you can borrow $5,500 freshman year, $6,500 sophomore year, $7,500 junior year, and $7,500 senior year. This comes to a grand total of $27,000. Who do you know who is willing to take on an additional $63,000 plus for your education? That is what co-signers do. They agree to pay off anything that you don’t or can’t pay.</p>

<p>If you are good enough for Penn, you are good enough for a lot of places that are significantly more affordable. Kiss Penn good-bye, and move on.</p>

6

<p>This is really a question for your parents since it would be their debt. Presumably since you applied ED they thought they could afford it. If they can then you have to take the admission. [at risk of going into the recurring ED discussion once again]</p>

7

<p>So far the response seems negative</p>

8

<p>If there is any way you can rescind your ED agreement, I would. 90K of debt is ridiculous and completely unreasonable, especially if you decide to go to grad school in 4 years where you will most likely accumulate more debt.</p>

<p>If you can get into Penn ED, there are tons of colleges out there that will give you significant merit aid. Graduating debt free at a “lesser” school is ten times better than graduating with almost 100K in debt from an Ivy.</p>

9

<p>If the TC is going to be an engineer or management consultant, then it might be worth it. </p>

<p>The top companies such as McKinsey do see prestige of school as an important factor in selecting candidates. However, a 3.8+, strong interview skills and good ECs are also necessary.</p>

10

<p>I can’t believe that UPenn would force the student to bear 90K in loans. Aren’t some of the loans parent loans? In that case your parents have to decide what they can afford. </p>

<p>Servicing a 90K loan yourself at 6% over 10 years is about $750/month. </p>

<p>I assume that you really want to go there so don’t walk away without carefully doing the math and without having a frank conversation your parents and with the Financial Aid office at UPenn. </p>

<p>If you have to bear the entire 90K, you’re going to want to analyze what constraints that’s going to put in your lifestyle when you graduate. If you want to go into Foreign Service or teach english in a private school, you need to get some idea what those jobs pay and whether any of your loans would be forgivable under those circumstance. </p>

<p>Don’t use rules of thumb. Do your own math. Then you have the facts. </p>

<p>Frankly if you’re going to live at home until you can make $75K/yr, then I think it’s fine if it’s what you want. If you’re totally on your own and want to live in NYC for example, you’re going to be dirt poor. </p>

<p>Only you can figure out if it’s worth it.</p>

11

<p>Penn is worth 90K in loans for sure. Obviously your parents are going to help you out right?</p>

12

<p>How do you know Penn is worth 90k in loans for sure, Goldenboy? We don’t know the family’s financial situation, the student’s career goals, etc. </p>

<p>90K in loans is ~$800 a month for 10 years - that’s a big commitment. Perhaps if this student is going to Wharton and committed to a career in business, the situation would be different.</p>

<p>Personally, I think limiting loans is preferable because it increases potential exit opportunities after college. If you have 90k in loans and parents/family can’t help too much, you <em>have</em> to seek a higher-paying job. That’s a big burden on a 22 yr old. </p>

<p>Taking more loans actually closes a lot of doors, both experiential and otherwise. Penn is a wonderful school, but there are lots of great schools out there, and 90k for undergrad is significant.</p>

<p>OP: Call UPenn’s financial aid office and come armed with facts (anticipated contribution you and your family can make, etc.). Unless they can re-adjust your loan package significantly (I’d be wary about having much more than 50k in student loans if parents can’t help out), you’d need to think about other options.</p>

13

<p>No, you should not borrow $90K for ANY undergrad. I would strongly consider taking the offer at Tulane or seeing if you get merit money at any of the others.</p>

14

<p>Cue7, I get over $1000/month for 10 years. [FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>

<p>Bubbles, are you stating the OP can bank on a job with McKinsey or Bain?</p>

15

<p>Erin’s Dad - yep, I was being pretty conservative with my interest rate estimates. $90k in loans probably means about $900-$1000 a month for ten years. That’s a lot of debt for a young adult. Further, the 90k in debt is before taking on any graduate school debt.</p>

<p>Should the OP want to go to law or business school, you’d probably need to tack on an additional $200k in debt. So, by the time the OP is in his/her late 20s or early 30s, the OP could have about $300k in debt. </p>

<p>Again, my big issue is taking on so much debt and limiting one’s options for undergrad. Taking on debt for graduate training is one thing, but it’s really not tenable for college. If the OP is a strong candidate, yes, he/she could do consulting/finance, but many people don’t even enjoy those careers. It’s better to have less debt and a wider range of exit options (even if some of those options aren’t as high paying).</p>

16

<p>I’m not suggesting that he can bank on a job with McK, BCG, or Bain. It’s just that if the following is true, it may be worth it. </p>

<p>-Strong major with strong intent to do well.
-He finds himself a match with the college environment.</p>

<p>I was the president of my class, talk to my classmates frequently, and know the what a combination of high grades, prestige of school, and personal qualities brings. </p>

<p>A surprising number of people got perfect grades at a mid-tier school but eventually went to Stanford or another prestigious institution in order to have a chance at the elite companies. </p>

<p>What I’m saying may run counter to the wisdom here, but I know, as a close friend of a McK fellow that they will only consider candidates from a top school with 3.8+ and superb interview skills. </p>

<p>I personally believe, based on anecdotal evidence, that a 3.8 at a top institution, in a major such as finance, may be worth at least 90k over a 3.8 at a lesser school.</p>

17

<p>No school is worth that much debt for a young person. NO school. </p>

<p>How much of the debt would your PARENTS be responsible for paying back? Will they be borrowing some/all in THEIR name and also co-signing an amount of debt for YOU to pay back?</p>

<p>The young folks on this thread that think this amount of debt is ok are simply naive and have never been faced with large debt. As someone who has several mortgages on several properties (thankfully the debt is secured and for asset-producing properties or primary home), I can tell you that it’s not fun having lots of debt - even tho the rental income takes care of most of it. </p>

<p>Having large student loan debt as a young person with an entry level salary, paying back large debt will be a huge anchor around your neck and ruin your young life. While your colleagues will be moving along with their lives (buying homes, getting married, traveling, saving, etc), you’ll be living “month to month” barely covering your bills.</p>

<p>Even a newish engineer doesn’t earn enough to pay back big loans.</p>

<p>One thing that young people don’t often realize is that a single person gets hit hard with taxes. A $50k-60k income (if lucky to get), will pay a lot of federal, state, FICA, and other taxes. Then there’s rent, utilities, cell phone, internet, cable, car, gas, insurance, food, clothing, entertainment. After that, there’s very little to pay for student loans.</p>

<p>Thankfully, most parents are too savvy to co-sign for crazy debt like this. Hopefully, that will be your saving grace as well.</p>

18

<p>Consider it a long-term investment in yourself. Do you believe you’re worth it?</p>

<p>You’d have to excel in whatever you study, though.</p>

19

<p>Re: #17</p>

<p>It is fairly well known on these forums that certain elitist consulting companies and investment banks recruit mainly from elite colleges.</p>

<p>However, the OP is not planning to major in finance or anything related (math, statistics, economics).</p>

<p>$90,000 in debt would be hard to pay off with the usual job prospects of an English or international relations major.</p>

20

<p>Here are Penn’s career surveys: [Career</a> Services, University of Pennsylvania](<a href=“http://www.vpul.upenn.edu/careerservices/undergrad/reports.html]Career”>http://www.vpul.upenn.edu/careerservices/undergrad/reports.html)</p>

<p>The one for 2012 College (not Wharton, Engineering, etc.) graduates is here: <a href=“http://www.vpul.upenn.edu/careerservices/undergrad/reports/CAS_2012cp.pdf[/url]”>http://www.vpul.upenn.edu/careerservices/undergrad/reports/CAS_2012cp.pdf&lt;/a&gt;&lt;/p&gt;

<p>Unfortunately, there is no information by major. However (on page 2), the median pay level for employed graduates was $51,000 and the average pay level was $52,603. However, the next table down indicates that most types of industries or employers had pay levels below that. The only categories with higher average pay levels were consulting, financial services, and technology.</p>