I am having trouble deciding what college I should attend. I plan to study business and I got into Indiana University which has one of the top business program in the United States. However, the school didn’t offer any financial aid to me. If I attend the school, I need to take out about 100k of loans in total for four years of college. Some people tells me that I shouldn’t go because the amount of loans that I have to take out is not worth it. On the other hand, some people tells me that I should attend the school because the prestigious business program has good placement for high paying jobs (such as working for a good investment banking firm) and that paying back the loan will not be a problem for me considering that I can make about 100k a year straight out of college. Right now I am deciding whether I should attend IU or attend my local state school and transfer to a better school after a year or so.
You can’t borrow that kind of money on your own. Someone else would need to borrow it for you, or would need to cosign it with you. Are your parents crazy enough to do that? Has their bank already told them that it won’t be any problem for them to qualify for that amount of debt, and that they definitely can borrow the money that they will need every single year for all four years?
Cross IU off your list, and go to a place that you can afford.
Imagine yourself just out of college. You have your first real job, an apartment, a car payment and a huge loan payment. Each paycheck goes out the door to pay these bills. $100,000 hangs over your head and you have to turn down nights out with friends, a quick trip to Vegas for your best friend’s bachelor / bachelorette party. It takes you several years or a decade to pay it off.
Now imagine your life without a $100,000 burden.
Which sounds better?
Don’t let the prestige sway you. Go to your local state school and ROCK IT! There will be opportunities there too - seek them out!
Those people telling you to take out $100k worth of loans won’t be making the payments, so their opinions don’t matter. You can only borrow ~$5500/year. If your local state school is affordable (your family can pay without taking out parent loans), plan to attend there.
I often wonder about students who intend to go into business and have trouble evaluating this.
Shouldn’t this discussion be under college search and selection?
It would be crazy to take out that kind of debt (if anyone would even lend it to you). And very few undergrads graduate and get $100,000/year jobs, even from the best of schools.
@happy1 @“Erin’s Dad” @austinmshauri @happymomof1 @phoenixmomof2 Thanks a lot guys! I really appreciate your responses! I have another question. On average, how much do students borrow to attend MBA school or get a master’s degree? Do you think the loan will exceed $100,000?
Grad school costs, and debts vary wildly. PhD programs should be fully funded by the department that admits you. If you don’t get that kind of offer, the department is telling you that you are a second-class candidate. Law School you will probably have to pay every cent of (often with loans), so google for Cost of Attendance at a couple places that strike your fancy. Some companies will help you pay for an MBA, but you might not be able to study full-time which probably means you will need to take out loans. Google for those costs too. Med/Dent/Pharma/PT programs are usually paid for with loans. Yup, all of those will almost certainly push you well over the $100k line.