<p>I have been reading the boards for a few months now and have noted all the people who complain that their EFC is too high and they just can't afford to go to any school, or the one that they wanted to get into. </p>
<p>I have been to college before, but they were community colleges. Both of them that I went to had a COA of about $10,000 a year. I have been to two community colleges like that and I got the Pell Grant and the school actually sent me extra money every semester. </p>
<p>This time I could have commuted back to one of the same college's that I went to before. (About 40 minutes from me) or I could travel 4 miles away and go to a University. I choose the University because I wanted a better education. I did not really think about having to take out loans, but since I choose a better college I am actually faced with that. </p>
<p>My EFC is 0 and I have to take out loans still. It is still worth it to me though. I know I will work harder this time because I am the footing part of the bill.</p>
<p>I like your grit Inspiringmind. If I were you I would look at completing the basic courses at the CC first just to save money before heading to the university. The fewer loans the better. I’m glad you are thinking this through.</p>
<p>Thanks, I think knowing I have responsibility in this has changed my thinking. 36 credit hours have transferred to the University. It leaves me with 59 credits to graduate (19 transferred to my current degree) </p>
<p>I am an older student (35) and I have spent my life trying to find what direction I wanted to go in. I finally found it and am very happy.</p>
<p>School loans can also help young adults establish a good credit rating, as long as the loans are small enough that you can reasonably manage to repay them shortly after college.</p>
<p>I agree with the OP. I don’t really mind taking out loans for a college education. Unlike getting a credit card or even buying a car, I consider my college education a serious and worthy investment. And I’m really not afraid to take out loans. It’s a part of life. Obviously I am hoping not to have to pay back more than $40,000. I think $40,000 is a fair price. Student loans are usually easily paid off - about $200 or $300 a month. That can be less than a car payment, and certainly less than rent or a mortgage. But, I think it depends on the view of the student. Many students may not realize how much money they will have to take out in loans ten or fifteen years from now when they buy a house, or maybe $40,000 sounds like a lot of money when they don’t take into account how little it is per month. $40,000 is no drop in the bucket, but it is manageable, and it is “good debt”.</p>
<p>" Obviously I am hoping not to have to pay back more than $40,000. I think $40,000 is a fair price."</p>
<p>That’s much more than is recommended that students take out. The average student takes out a total of $17 k to pay for their entire college education. I strongly suggest that you cut your loans by completing community college first.</p>
<p>“That’s much more than is recommended that students take out”</p>
<p>Where is info about what amount is “recommended” for student loans? I’ve seen averages of what students end up with, but it was more than $17k.</p>
<p>Yes, I see the average now is around $21 k:</p>
<p>"Like a mortgage or a business loan, borrowing for education can be a smart investment in your future.
Too many of today’s students and their parents, though, are taking a good thing way too far.
I get e-mails from readers who are $30,000, $40,000 or more in debt from student loans and who can’t find work in their fields. Even if you graduate with the average level of education debt – about $21,000, according to The Project on Student Debt – you may be jeopardizing your finances. Many newly minted graduates find their loan payments are so big that they can’t save for other goals, such as a house or retirement…</p>
<p>Knowing all that, how do you decide how much debt you should incur? Obviously, the less borrowing you have to do, the better:
If you’re a student, your payments shouldn’t exceed 10% of your expected monthly gross income once you graduate.
If you’re a parent, all your debts – including mortgage payments, credit cards, car loans and education loans – shouldn’t eat up more than 35% of your gross pay.
…"
[How</a> much college debt is too much? - MSN Money](<a href=“http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/HowMuchCollegeDebtIsTooMuch.aspx]How”>http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/HowMuchCollegeDebtIsTooMuch.aspx)</p>
<p>"To get an idea of how much debt is reasonable, start with the Student Loan Advisor calculator at [FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.com%5DFinAid”>http://www.finaid.com). Students plug in their field of study, expected graduation date and loan interest rate. The site gives them the maximum loan amount they can safely handle, assuming they want to limit their monthly payments to between 10% and 15% of their income.</p>
<p>Say your future brother-in-law plans to major in education. As a teacher, he can anticipate a starting salary of $35,100, according to the calculator. To limit his payment to 10% of his income, he could borrow about $25,500 at a 6.8% interest rate (the rate on new government-sponsored Stafford loans) with a ten-year repayment schedule.</p>
<p>If he’s planning to be a chemical engineer, with a projected starting salary of $60,300, he can borrow $43,700, given the same assumptions…"
[How</a> Much College Debt is Too Much? - Kiplinger.com](<a href=“http://www.kiplinger.com/columns/drt/archive/2007/dt070613.html]How”>How Much College Debt is Too Much? | Kiplinger)</p>
<p>I suggest also keeping in mind the depressed economy, which may mean that the salary estimates on the site now are too high.</p>
<p>$40,000 is a lot. I’m willing to take it. For me, personally, community college is not an option - that’s not why I worked my behind off in high school. I know that students who go to community college are just as well off or whatever, but for me, personally, it is absolutely out of the question. That’s just me. I think everyone has a different idea of what’s reasonable for them. I’m not even going into a high paying field. But I’ve always made financial sacrifices, and if I have to do that when I graduate, so be it.</p>
<p>That financial calculator was really helpful. I plugged in my all of my prospect majors and according to the calculator, I can handle from $36,000 - $39,000. Perfect.</p>
<p>Thanks for your story, inspringmind.</p>