<p>I'm thinking of transferring to one of my dream schools, and they offered me $5500 in federal unsub loans. My parents said in order for them to bear their side of the costs, I'd have to take out all $5500. Suppose I take out $5500/year for the next 3 years; that means I'd owe at least $16500 after graduation. If I follow the whole 10-year thing, I'd be paying around $138/month or so paying them back. </p>
<p>I'd like to go, but I'm a bit scared about the idea of the next 10 years paying it off. Is $138/month (at least) that inhibiting to one's lifestyle? I know it's below the avg. student debt, but I don't even know what 2017 will even look like, let alone if I'll successfully get a decent job.</p>
<p>Such a good question. Do you have any idea about your potential career path? Do you plan on being a starving artist or a Wall Street investment banker? </p>
<p>If you add 4% interest to the equation, your payment will be $167. The amount should be fairly easy to cover with an average salary but you may have to make a few sacrifices. I think small loans are good for teaching financial discipline and establishing credit worthiness. </p>
<p>@deega123 neither lol. Right now I’m on a pre-med track, but you know how fickle premeds can be. If not pre-med, then hopefully pre-pharmacy or pre-PA. The health field’s where I’m gravitating right now, but who knows if my mind might change later on. I’m not majoring in business, econ, engineering, accounting, or any other major that guarantees job prospects right after graduation should I opt out of the health professions, but I wouldn’t be a music/arts major, either (not saying that it’s bad at all, but I’d imagine it’s harder to find jobs based on those majors alone). </p>
<p>premed, prepharm, prePA are all fields that lead to lots of grad school debt. however, you are not talking about a lot of undergrad debt. If you were considering $40k+ of undergrad debt PLUS grad school debt, then that would be an issue.</p>
<p>that said, why not work over the summers and borrow less?</p>
<p>I think you are a Texas resident, and at a UT satellite. If so, why arent you transferring to UT or TAMU? If you are premed and a TX resident, then planting your fanny in a TX school is the way to go. It will make interviewing at the TX SOMs much easier. You will likely end up at a TX SOM (if qualified) because TX SOMs are much easier to get into for TX residents.</p>
<p>@mom2collegekids Yes, I am a TX resident and at a UT satellite. But UT didn’t give me anything for FA when I applied freshman year. They expected my family to pay 20-30K per year. With my “dream” school, my family would pay around 13K WITHOUT the loans. That’s still a little too high, as they can’t really pay for 5 digits, hence the loans. But at least the private university gives generous FA. </p>
<p>And working over the summer is what I plan on doing. I’d still be a TX resident no matter where I go, so where I go to school shouldn’t make a difference when applying to TX SOMs, AFAIK</p>
<p>For the amounts you are considering, that should be fine. Especially for a “dream” school, especially since you done well at college at this point. </p>
<p>As to the damper. Well, my son is an actor, and he barely makes ends meet. He’s got financial issues as it is. But no defaulted or late school loans as he is loan free. It’s a big stress factor to a lot of people he knows in his field. And even those in other fields doing well. You live in NYC and you want to live well, even that extra hundred or so a month going to what seems nothing since college is now a long done deal hurts. </p>
<p>$170/month isn’t very much at all. I don’t think that will inhibit your lifestyle that much for the next 10 years. Given the wisdom that you should keep your student debt to 10% of your monthly income, you could afford to repay $170/month with an income of about $20,400. I would imagine that you’d make more than that as a new grad, so I don’t think I would worry much.</p>
<p>Always worry about debt. Do whatever you can to stay out of debt. Better to go to school part-time than to take loans. There are no job guarantees in life and I see thousands of situations every day where people have horrible credit in large part due to their student loan debt. </p>
<p>Do a realistic budget with a minimal income. Housing, utilities, food, transportation…these will eat up a large portion of your take home pay. (Don’t forget the government will take 30% or more depending on your state where you work). Texas is great with no income tax, but you still will have federal and fairly high sales taxes to eat at your income.</p>
<p>How inhibiting? Well, lots of things inhibit us. We try to make the wisest decisions we can, at any given time. Sounds like the first year would be 13k minus 5500, leaving 7500 for your family. (What would it be, at the current school?) Remember, the max amount of student loans can go up to 7500/year, for jr and sr years. (And that college costs will increase a few percent.) Agree this sounds like a reasonable debt.</p>
<p>My question would be: if you stay where you are, could you do pharm or PA without needing a separate grad program? </p>
<p>@lookngforward No and no. My current school doesn’t offer either of those programs where you can be finished with UG work after 2 years and go straight to pharmacy/PA school</p>
I don’t agree with this, when we’re talking about modest loans, as the OP is. For many purchases, loans make sense, as long as they are manageable–this includes houses for almost everybody, and cars for (I would guess) most people. A college education is another purchase.</p>
<p>If you have the prereq’s for a 6 year PharmD program you can apply from any school. For example - the University of South Carolina takes applications to their PharmD program from anyone that has taken the list of necessary classes. So it could be possible for you to get this degree in 6 years. It would cut down on your overall debt. But your parents would probably have to co sign on some loans to enter into a profesional program in a year.</p>