<p>Probably will need to have child take out loan for USC. College is 48K per year and our EFC says we need to pay the whole thing. At admit day they said (according to my wife) that 25K debt for a graduating college senior was about the max they recommended. I am not sure if they meant 25 per year or 25 total. DO YOU THINK $40,000 IS UNREASONABLE TO ASK THE CHILD TO TAKE OUT IN LOANS? tHAT IS ABOUT !0,000 PER YEAR.</p>
<p>I think a lot of it has to do with what kind of career this kid is expected to have when they graduate. But there are few undergraduate degrees that can justify $40,000 in debt. And if they plan to go to graduate school for one of the higher paying jobs...where will they come up with the money for that? Will that mean more debt on top of the 40K?</p>
<p>As you know, this won't be the only debt they will accumulate in life. What about car loans? Expenses for housing? Insurance, food, clothing, entertainment, taxes - the list is endless. </p>
<p>There will be people here who will say that 40K is no big deal - are these the same people who are in debt up to their eyeballs and just don't care or are they from wealthy families that haven't had to struggle a single day to put together the rent money? I don't know, but I do think that accumulating huge debt at a young age is a risky way to start an independent life. And perhaps it's just not necessary when there are other options available.</p>
<p>I would imagine they meant $25000 total. That is about the ceiling for subsidized loans, i.e., the amount the government is willing to guarantee the student will pay in the case of Stafford-type loans. In essence the government is co-signing with the student for that type of loan, so the lender is assured payment even if the student defaults. Thus, the government is interested in keeping the amount reasonable for the typical student, so the guarantee does not come into play very often.</p>
<p>Obviously your student may be able to take out much more than that in unsubsidized loans, as much as he wants as long as a lender will give it. I see you are asking is $40,000 total "unreasonable." I would say yes, but know nothing else about your situation.</p>
<p>I would agree with the above posters. Depending on how other financial aid/scholarships etc work out we are expecting our D to take out some student loans. But I do not want her to take out more than $20,000 total - and I hope it will be less. I would strongly guide her away from starting her work life with as much as $40,000 undergrad debt (that number will neccessarily increase if she goes on to further her education)</p>
<p>Bear in mind many COAs have some wiggle room as far as personal expenses etc. We are expecting our D to work for her personal expenses - both summer job and a small (10 - 15 hours a week) job during school. I don't want her having extra debt for those personal expenses.</p>