How much debt should I be willing to take on?

<p>I'm in at both Amherst and UCSB, but whereas UCSB is practically free (Regents, Cal Grant, possibly a KFC scholarship applicable only for in-state schools), Amherst will leave me with a $35k debt (though I do get a nice $25k grant for independent study and research projects).</p>

<p>I could keep applying for more scholarships, but at Amherst, they only go toward reducing your work-study hours, not the parental contribution. Of course, I have time to wait for other offers to come in that I could use to negotiate with the finaid office.</p>

<p>How much debt do you think I can take on? I'm not getting help from my parents, and I plan on going to grad school for psychology.</p>

<p>Is that debt per year, or for all four years?</p>

<p>Does the $35k debt include your parents’ EFC? </p>

<p>How will you pay for trips home a few times a year?</p>

<p>$35K is way too much for undergrad, especially if you’ll be going to grad school. </p>

<p>If you get fabulous offers from comparable schools, you could try asking Amherst for a review (NOT “negotiating”). But if not, there’s nothing at all wrong with UCSB, especially with that scholarship. You seriously do not want to start you adult life crippled by debt.</p>

<p>It’s $35k for all four years, and it includes my parents’ EFC. FAFSA calculated my EFC to be around $4000, but the real estate owned by my parents (not entirely paid off though) definitely upped it in the financial aid office.</p>

<p>I’ll probably go home twice a year, and roundtrip tickets are around $300. $600 doesn’t seem like much in the context of the entire budget, though.</p>

<p>It’s only early March…surely you’ll get other offers? Are you speculating or are these your main options? I currently go to Berkeley (probably no debt, acc. to my parents), and regret a bit not looking more seriously at my LAC options. There’s a huge difference between a LAC and a UC. But I didn’t want to go into much debt either.</p>

<p>If your EFC is 4000, why do you need to borrow $35k??? Amherst meets need without loans, right? So, all you need to borrow is your EFC…so why the bigger loan amount?</p>

<p>What exactly was in your Amherst aid package?</p>

<p>Be wary. Be very wary. Right now all this loans/ grants/ work study dollars can seem like Monopoly money. There can be a temptation to go have a great, grand time and worry later. </p>

<p>Can you afford a new car right now? Could you, with your busy life, manage $400 a month for a car payment (month after month after month)? Try imagining paying for a car with your current life. You’d have to make some huge sacrifices (friends, activities, down time). That’s what you are looking at if you take on huge debt. Years and years of no time for friends, family, fun because you need to work extra hours to pay that college debt. </p>

<p>Be very wary.</p>

<p>Amherst supposedly meets 100% of need, but I’m guessing the need they calculated was much different than the need reported by FAFSA. Again, this is probably because my parents own real estate, albeit this is a house that has not been paid off and requires a monthly mortgage payment.</p>

<p>At the bottom of the memorandum, they requested more information about our second piece of property. I don’t remember what was reported the first time, but assuming I had omitted the market value, equity, etc. values, would it help that the house is nowhere near being paid off?</p>

<p>Details of the package:
Federal Work-Study- on campus 1,800
Amherst College scholarship $37,578
Total awards: $39378</p>

<p>I’m expecting other offers. Although seeing as Amherst is supposed to be one of the most generous schools there are, I’m a bit worried that my other offers will be similar (waiting on Middlebury, Brown, Dartmouth).</p>

<p>Thanks for the advice, Olymom. I’m being very wary, seeing as how I can’t even conceive how much $35k is (I’ve never had more $1500 in my savings account before).</p>

<p>I don’ t want to be a complete party pooper or hypocrite here. One of our guys had a great local package but after an admit weekend at Dartmouth, he knew his heart beat green (heart, soul, liver, the works). </p>

<p>There are times to swing for the fences. There are times when the opportunity is worth some blood, sweat and tears. After talking things over, we knew this was one of those times – and there have been no regrets (well, we don’t see S much because $ goes towards college costs and there isn’t much left over for trips home). But it has been worth it. </p>

<p>Still, be wary. Collect lots of data and talk things over with your folks. It would be nice if one of them can go to the admit weekend with you. It is an extra expense, but then they would see for themselves whether the deal is worth the family undertaking the burdens. DH went with son to admit weekend. DH said he was mostly ballast but he did get to see the joy and the “fit” of kid to place and that helped us get into “go for it” mode.
Good luck!</p>

<p>At the bottom of the memorandum, they requested more information about our second piece of property. I don’t remember what was reported the first time, but assuming I had omitted the market value, equity, etc. values, would it help that the house is nowhere near being paid off?</p>

<p>I don’t know how it all works, but if the second property has no or very little equity, that might help. Have you provided that info? How much equity is in that second home? </p>

<p>Details of the Amherst package:
Federal Work-Study- on campus 1,800
Amherst College scholarship $37,578
Total awards: $39378</p>

<p>Since the COA of Amherst is about $55k, so it looks like they expect your parents to pay about $15k per year. Is that right? Considering that their FAFSA EFC is $4k, it sounds like something really bumped the institutional formula. </p>

<p>Didn’t you have to include the second property’s value on FAFSA? </p>

<p>If your family’s EFC is $4k, then their income must be quite low…too low to pay $15k per year in family contribution. Is that right?</p>

<p>Thanks for all the help, olymom and mom2collegekids.</p>

<p>The COA on the website includes books, travel, personal expenses. Tuition and room and board is around $48k, so I’m hoping to my real COA is around $51k. (The value listed for expected travel expenses is inflated for internationals.)</p>

<p>I thought I’d listed the second house info. on the CSS Profile, but I suppose I didn’t, or they wouldn’t be asking for it now. But that info. could potentially reduce my aid further (Let’s hope not!)</p>

<p>They expect my parents to contribute $12,200 a year, and me to contribute $1,600 a year. The student contribution figure is great, but my family’s adjusted income is right around $45k, and $12k would be a squeeze. I don’t think they’re expecting to pay anywhere near that, either, even if they could afford it. My two siblings both attended UCs.</p>

<p>Will you have any siblings in school next year?</p>

<p>Do you know how much equity that second home has? Does Amherst consider equity of primary residences?</p>

<p>It seems like Amherst is expecting some money to come from assets since your parents AGI is lowish to expect $12k contribution.</p>