<p>The more specific question follows. Assuming that I have the choice between graduating with a full-ride + stipend ($12k per year) + guaranteed travel abroad money + honors program from a state university, and graduating from a top ten school with 20K in student loans, what would be my best option? Currently, I plan on double majoring in Econ and IR. Consider that I may want to go on to graduate school (possibly Georgetown SFS), and that by going to the prestigious school, I would forfeit free guaranteed travel-abroad money from State plus a prestigious in-state scholarship. Also consider that I want to invest as early as possible, so that compound interest could work its magic. My heart's out-of-state, but my mind's instate. </p>
<p>Take the State U. You want to - you know it. So just do it. Forget the "top ten" school. You will be happy in the short run and the long run.
Listen to your brain on this one.</p>
<p>Yup, I agree -- no debt is the best especially if you are planning to go to grad school. My son is in the same boat -- he received several full scholarships to go to schools ranked within the top 50 and he got into a school ranked in the top 10. Top 10 school would be about $100,000/four years but the top 50 schools would cost us about $8,000 after four years. So he can used up all his college savings and go to the top 10 school or he can go to the top 50 and still have his savings for grad school or heck, downpayment for a house -- whatever is left is his. It is a tough decision to make at such a young age but the choice is his with lots of input from friends (who would love to have his decision) and family.</p>
<p>Well, because of our low EFC, the top 10 will "only" cost our family $7,000 a year, plus cost me $5,000 of loans per year. I also think it would offer better grad placement than the instate school. And it has a better academic environment. There are limited class sizes, classes are all taught by professors (who are distinguished in their field/have teaching awards), and a nerdy environment. In direct opposition to this is my in-state school, which is a HUGE school (50,000+ students) and a notorious party school. Plus, the classes are not challenging at all. And don't grad schools give stipends/tuition exemptions for people? </p>
<p>20k of loans isn't really that much, and it is an investment in human capital, after all. I don't know if I said this or not, but I'm also shooting for (though not depending on) getting a Fulbright to teach English in Russia or France. So, I think the top ten would better prepare me for that. In light of this information, would you guys change your opinion?</p>
<p>It's a no-brainer: state u. Your preparation for your goals depends entirely on you, not the ranking of your school. Even third and fourth tier schools provide a solid education to students motivated to maximize the opportunities available to them. Earn a high GPA, score high on the GRE, and volunteer to work with a prof on his/her project so you are known within your department when its time for grad school recs. Don't assume debt when you don't have to and especially not when you see grad school in your future. </p>
<p>Yes, many grad programs (not all) waive tuition and award teaching assistantships but usually it's only available for PhD students and funding is not always sufficient. In any case, you may change your mind several times before you settle on an undergraduate major and/or a grad school program and you will have more freedom to follow your bliss if you aren't burdened by debt.</p>
<p>How much to be in debt is only part of the equation. The answer lies in how much you will pay and for how long you will pay vs to your earning capacity.</p>
<p>20k debt isn't really that much to be all to honest. However if you're considering grad school...it is a different scenario. But remember, you must be sure that you'll be happy with just the state school degree, don't bank on getting into a prestigious grad school. In my opinion I'd choose the top 10 school, 5k per year isn't a huge amount of money. Also, if you're talking about University of Arizona or ASU...I'd be weary.</p>
<p>Yes, what will your salary be versus the amount of college debt and how long will it take to pay it back. Remember gross salary is different from your take home pay!</p>
<p>But, here's the thing: I plan on going into a low-income career. I either want to work as a member of the Foreign Service or a freelance journalist. I don't want to go into i-banking or consulting, even if I do major in econ. That's not me. So, my salary will not be significantly different wherever I graduate from. For me, it's an issue of whether Chicago is worth 20k in loans, no summer study abroad, and no IRA savings for 4 years : ( Granted, I could still study abroad at Chicago, but I'm giving up a really unique experience I could have in-state.</p>
<p>Thanks for the insight though! It's interesting that the parents tend to say I should go in-state and everyone else says to go out of state, lol.</p>
<p>On another thread someone told the poster to follow their 'gut'. From everything you say and the way you say it it really sounds like you want the in-state program. Follow your heart and your 'gut'. The debt is really not onerous but Money does not really seem to be the issue here. Take the money issue out of the equation - if you did not have the $20k in loans to consider where would your heart lead you? Where do you picture yourself? Go where you really want to go.</p>
<p>Actually, barring any financial problems, I would rather be at Chicago. I've been thinking about this a lot, and if I could graduate with 20k in debt, I'd be ok. Now, it's just a problem of when my brother graduates from college in 2 years, our EFC for Chicago will go WAY up. And my parents are barely contributing anything to my college education, so I would have to transfer in-state anyways or rack up tons more in debt. It's just so frustrating, all of this!!!</p>
<p>Are you the kind of person who will always regret not going to Chicago? Will your chosen career provide too little financially to pay for the loans? You should think about both of these questions, and then you can come up with the right answer. If you move on to new things without looking back at the might have beens, you know where to go. If you will punish yourself for not going where you really want to, isn't that a higher price to pay.</p>
<p>Oh - I misunderstood. I though you would only graduate with $20k even if you went to Chicago. If that were the case I would say go for it. 20k is not that bad. If it is much over 20k - then you need to realistically consider how much debt it would be and how that would impact your life for the 10-20 years after college. Finaid has a loan calculator that shows you what your payments would be and the salary recommended to support that payment. FinAid</a> | Calculators | Loan Calculator</p>
<p>So, including the extra amount I would have to take out to cover what the parents aren't paying when our EFC effectively doubles (due to my brother graduating), my loans would be 29k. That's a payment of $333 a month for 10 years. Thats between 6.6%-10% of my monthly income (yearly income range from 40,000-60,000). </p>
<p>According to Nellie</a> Mae: How borrowers perceive their education debt, those with debt repayments of under 7% of income do not feel difficulty, and those who pay 7-11% of their income feel slight stress. I suppose that 29,000 in debt would be feasible for me, but unsavory. I mean, I can always go to Chicago for grad school, right?</p>