how much debt?

<p>i noticed the thread on debt, but my debt will not be that much, I was hoping for some comments on how much debt is considered "alot" vs. "reasonable"</p>

<p>I have narrowed it down to two schools. My first/top choice is a prestigous private school. The financial aid package I recieved would have me making student contributions (summer earnings), work-study contributions, and a total of somwhere between $12,000- $20,000 in loans (my family's income is going to rise and i will have a sibling entering college while i am there, so it is hard to tell completely at this point). And, of course, my parents will pay their EFC.</p>

<p>My second (and considerably lower) choice is a top public school (many consider the best state school, or at least in the top 3 or so). I will have to pay nothing but the EFC ( no work-study, summer contributions, etc). **Note: this will probably change in the next yrs as I explained in our financail situation above, but I figure it will still be considerably less than the private school. </p>

<p>So, the question is how do you feel about 12k-20k in loans. Is it reasonable/manageable, esp. if I am considering grad school? Is it a small price to pay for my top choice? Also, what about the summer contributions and work-study...</p>

<p>Thanks.</p>

<p>Do you mean 12-20K in loans for the entire 4 years or for each year? If that is your total debt, that amount seems quite reasonable.</p>

<p>to clarify the loans total is for the ENTIRE 4 years 12000-20000</p>

<p>ok so hopefully it will be below average.</p>

<p>also there is only one website you listed, carolyn? Thanks for that one thought it kind of helps put everything into perspective.</p>

<p>$20k at 7% over 10 years is $232.22 a month. That's about average for prestige privates these days. And doable for most. It is not necessarily desirable, but certainly "reasonable" these days.</p>

<p>First, according to research conducted by the College Board, the average amount of debt students graduate with these days is just over $19,000. As mini points out, the amount you're talking about is pretty standard these days.</p>

<p>Second, here are two great websites where you can look at how managable paying off different amounts of debt after graduation will be:</p>

<p><a href="http://www.csumentor.edu/FinAid/SLOPE/%5B/url%5D"&gt;http://www.csumentor.edu/FinAid/SLOPE/&lt;/a> - SLOPE calculator, lets you look at debt-to-earnings ratios for various careers</p>

<p><a href="http://www.mapping-your-future.org/apps/debtwizard/%5B/url%5D"&gt;http://www.mapping-your-future.org/apps/debtwizard/&lt;/a> Mapping your future debt wizard Mapping your future debt wizard - lets you calculate how much income you'll need to pay off various amounts of student loans.</p>

<p>In looking at your student debt, also take into account potential increases in the cost of attendance, as well as the amount of time it may take you to graduate. </p>

<p>No one likes to borrow, but here is my thinking: A managable amount of debt can be an investment in your future, and is not always something to be afraid of. But, be sure to weigh the strengths AND weaknesses of each school separately, not just in comparison to each other, before deciding whether any debt is worthwhile for YOU. Prestige is great, but there's also something to be said for being able to focus on your studies without worrying about work study and summer employment as well. But, in truth, only YOU can decide which is the right path for you -- any advice from strangers who don't know you or your situation is likely to only confuse you more. So, do the calculations, evaluate each school on its own strengths and weaknesses, discuss the options with your parents, and you will make a good decision, regardless of which choice you ultimately make. </p>

<p>Good luck!</p>

<p>It should be added that under your scenario, your parents aren't taking on any loans. At some schools (often with wealthier student bodies), students often seem to have lower debt burdens when the reality is that their parents are taking on the loans instead.</p>

<p>Good point, Mini.</p>

<p>Thanks for the comments. I recently got an unexpected acceptance letter to a school I had totally forgotten I applied to, with nice financial aid from them, too, so my choice has just become harder. Not complaining though :)</p>