<p>But my parents might have to sell their house to afford to pay for my college.
I'm highly considering student loans. Where should I start? I highly doubt I could get an outside scholarship.
My family is upper-middle-class if that makes any difference. I'm applying to pretty expensive private institutions. (Sarah Lawrence, one of my top choices, is 50k/year.)</p>
<p>alright well i'm not going to get into a discussion about actually paying 50k for a college, if you wanted that opinion you would have asked. As for student loans in the amount you may need there are a few options.</p>
<p>One is a parent PLUS loan. This has an interest rate of 8.5% and is taken out by your parents. There are also private student loans with variable interest rates based upon the prime rate (currently 8.25%). You will need a cosigner and if your parents have good credit, prime + 0% is possible. The payment on private student loans as well as PLUS loans can be deferred until after graduation, although the PLUS loan may require interest payments while in school. Most big bank institutions offer private/Parent loans. </p>
<p>There are stafford loans at 6.8% that are federally guaranteed with loan limits of $3500 freshmen year, $4500 sophomore year, and $5500 after that. If you demonstrate federal need you can get subsidized stafford loans in which the government pays the interest while you are in school. These loans are in your name only but you will need to fill out the fafsa to be given them.</p>
<p>Another option for your parents to consider is taking out a home equity line of credit to pay for your college costs. The interest on those is usually below prime.</p>
<p>Go here for more info: <a href="http://www.finaid.org/loans/%5B/url%5D">http://www.finaid.org/loans/</a></p>
<p>thank you, i forwarded this info to my parents. </p>
<p>also, what ARE your thoughts about 50k/year for undergrad? I'd like to hear them. I think it's ridiculous.</p>
<p>200k for an undergraduate education is an immense amount of money. If your parents were loaded and could pay it outright then maybe it would be okay, but if they have to sell their home it's too much. Also, coming out of school $200k in debt is an almost unimaginable amount of money and if you're not absolutely obsessed with going to that college then I would look into a cheaper school. State school's aren't the only colleges that don't cost a mortgage to attend, there's a sticky in this forum that has a list of high merit-aid colleges.</p>
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<p>PLUS loans are parent loans, not student loans. There are really not too many loans out there for students alone. You would need a cosigner. Simply put, students usually don't have the assets and income to support a substantial loan and if they HAVE the assets, they probably would not need the loan.</p>
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<blockquote> <p>what ARE your thoughts about 50k/year for undergrad?>></p> </blockquote>
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<p>If your family can support this expenditure, then it's fine. Otherwise, you should be looking at less expensive options, in my opinion. At this point you should be having a serious discussion with your parents about the costs THEY are willing and able to bear for your college education. If they say they can and will support you in your expenses for "pretty expensive private institutions" then go for it. Otherwise, I would have to ask you why you are considering these colleges as options.</p>
<p>thanks, you guys have really helped to elucidate the situation. I'm going to try to have a discussion with my parents this weekend. thanks again.</p>
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<p>what ARE your thoughts about 50k/year for undergrad?></p>
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<p>a. If there are people who can afford to pay this amount, then there will be $50k/yr undergrad costs. </p>
<p>b. The rise of student loans and PLUS, coincided with the low interest rates of 2002-2006. </p>
<p>c. Defaults in the student loans will manifest itself in 4 years as the current students graduate and assume payments. </p>
<p>d. College costs will come down as a result of resistance to college costs, high defaults, and the passing of the Boomlet and X generation children passing thru the college years.</p>
<p>Ok so your parents sell their house to foot the bill for your undergrad.....They still have to live somewhere.</p>
<p>Besides, It sounds as if your parents have experienced some great appreciation in the value of their home (really reading between the lines here). I know I wouldn't want to try to sell a house in the current market. </p>
<p>Houses are not what would be considered a liquid asset.</p>