<p>Hello! I really like school X but if i go there i will end up will with 150,000 in student/ parent loan debt. and owe about 20k a year after i graduate. (with a BS in business adim and hopefully my CFP). if i go to Y i will end up with about 45,000 in debt. Y does not have name rec that X does, and i like X better. so, to me (a HS senior) 20K a year in payments just for loans seems insane. It that to much or is it doable? thanks for the info. PS do you think an upgraded room for 2K extra a year is worth it? Thanks again</p>
<p>Save money on the room unless it is for health reasons. </p>
<p>Keep your debt as LOW as you can keep it. $150,000 in loan debt will cost you about $1800 a month to repay. Not worth it.</p>
<p>thumper i thought it was quite a bit as well though the average out of college income at X for the bis program in 60K a year. the real thing that bothers me is my parents act like everyone takes out loans of that much and i can find anywhere to prove them right or wrong…</p>
<p>Your parents would have to cosign that loan. Please try to keep yor undergrad debt to a minimum.</p>
<p>“i can find anywhere to prove them right or wrong…”</p>
<p>Point them here. Also, college board lists average indebtedness, by school.</p>
<p>Here’s something
<a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1223398-average-indebtedness-graduation.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1223398-average-indebtedness-graduation.html</a></p>
<p><a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid;
<p>And</p>
<p><a href=“http://money.cnn.com/2011/11/03/pf/student_loan_debt/index.htm[/url]”>http://money.cnn.com/2011/11/03/pf/student_loan_debt/index.htm</a></p>
<p>I have worked it down to an equation ;)</p>
<p>For bachelor’s degrees:</p>
<p>too much is when
loan debt > expected starting salary for your field * (percent chance of getting a good job / 100)</p>
<p>shrinkrap i have done that and it looks to me like the totals they have are the stafford loans added up, so i assume their parents have taken loans as well that are not factored. i have just had a very hard time deciding is the extra 100K ish is worth the better school/better environment (the 4,000 people i would be use it vs the 20,000 i would be lost in)/ better degree value. I am afraid, coming from a graduating class of 64 people i will be overwhelmed by 20,000 and will not learn/be held accountable, the teacher connection i like as well.</p>
<p>My kids had a graduating class of 64 too! </p>
<p>But I have never heard of average debt of 100k+, except for medical school.</p>
<p>Thank you shrinkwrap, did your children go to a large or small school? did they enjoy it? </p>
<p>naokifresh the chance is 100% so that would have me paying off the debt (in theory) in the first year, which since i have 15 years is a irrelevant equation right?</p>
<p>20K a year in payments just for loans seems insane. It that to much or is it doable?</p>
<p>===============</p>
<p>Even $10k per year in loan payments is way too much. $5k per year in loan payments would be difficult.</p>
<p>I think about 32000 is the top end of what someone should borrow for UG even in a field with good employment chances.</p>
<p>heath, I think you misunderstand the equation naoki posted.</p>
<p>No one uses 100% of their salary to pay off student loans. If anything, its probably 10%. So if ur starting salary is 60k (which sounds way too high) then ull probably spend 6k a year.</p>
<p>Thats why your starting salary should be greater than youre debt because you will have to put a portion of your salary to loans.</p>
<p>“Thank you shrinkwrap, did your children go to a large or small school? did they enjoy it?”</p>
<p>They both went to schools about 6k undergrad, maybe 3 and 6k grad. Oldest is a senior, youngest a freshman, and so far it looks like both will have had their ups and downs, but not because of size. </p>
<p>My oldest will be fortunate enough to graduate with only about 12 k debt, all unsub stafford.</p>
<p>Yes, I mean of course you shouldn’t spend most of your salary on paying back the loan, or even half of it.
It is just a rough estimate if you want to be capable of paying back your loan and being able to enjoy your young life comfortably.</p>
<p>Hopefully you don’t want to spend the entire 15 years paying it back in a tight squeeze (you could have kids by then!).
Remember when you graduate you will also need to have a place to live and associated costs (heating, electricity), transportation, food costs, clothes costs, furniture, etc.
That will take up a great deal of your income and you really won’t be able to sacrifice all your money to paying off the loan.</p>
<p>So that is why I think you have to compare the worth of the degree to how much debt you go in for it. Keep your debt lower than the average starting salary for your field, and really for a bachelors degree, you shouldn’t be going more than $50,000 in debt, and that’s if it’s a good field.</p>
<p>Ask yourself if you really want to pay so much just for that university, so you, when you are in your early and mid 20’s, the prime of your life, will not be able to say take a vacation abroad, get married/honeymoon in style, wear the nice clothes and eat at yummy restaurants often, etc…because you are too busy pinching pennies to pay back the loan.</p>
<p>I have one child at a very small private school. Kids from there do well at small schools and they do well at large schools. We have graduates at some of the biggest state Us in the country and they are thriving. You can do. (Average graduating class is about 60.)</p>
<p>Do you parents understand the monthly payments you would face? Are they planning on paying back the loans for you?</p>
<p>While the larger school has 20,000 students, you will find a smaller group do friends, and eventually students in your major.</p>
<p>Re: loans…do your parents realize that the loans in excess of the
Staffords will also be their loans? They will be required to cosign and if you cannot pay them, your parents will be responsible for doing so.</p>
<p>No undergraduate degree on the planet is worth $150,000 in combined student and parent debt, so just take that one right off the table. If you absolutely must do the reading on that subject, visit [Project</a> on Student Debt: Home](<a href=“http://www.projectonstudentdebt.org%5DProject”>http://www.projectonstudentdebt.org) and click on the tab labeled “Voices” for reports from the debt-payback front. Have your parents read them too.</p>
<p>The only debt you can take on in your own name is the maximum for the Stafford Loans (and Perkins Loans if your school awards those to you in your financial aid package). The Stafford limits are:
$5,500 Freshman
$6,500 Sophomore
$7,500 Junior
$7,500 Senior
For a grand total of $27,000. Lots of parents in this forum would advise that you not borrow one cent more than that. Do you have any place at all on your list that would keep your debt in this range? If not, why not?</p>
<p>$45,000 is a full $18,000 more than the Stafford limit - two thirds more in fact. You would need a co-signer for that money. Are your parents in good enough shape to be approved for those additional loans? What are your plans if they can get them one year, but not in future years?</p>
<p>Getting real about the money can be a traumatic process for many families, but you do need to get real about it. You want to study business and pursue a CFP. Consider this to be your first homework assignment.</p>