<p>I know I won't qualify for need based aid, and the college I want to go to is really $$$ but they offer no merit based scholarships. I'm trying to apply for outside scholarships but those are usually really competitive and not that significant in terms of money value anyway. If i were to get a loan that would probably be around $100,000 ( tuition and room and board is about $160,000 for four years--i'm guessing my folks will be able to pay anywhere from 60-80k) then would I be in massive debt when i got out of school? i know this might seem like a dumb question, but i don't know about any of this financial stuff.</p>
<p>That is why it is important to have a financial safety, a school that if admiitted you will attend and your family can afford to pay the tuition.</p>
<p>You won't know whether or not you are eligible for need based financial aid until you apply. I would suggest filing your paperwork and see how everything pans out. In addition, you should check for schools that are still accepting applications to find your financial safety</p>
<p>Many students come out of college with debt, but it depends on the student to determine how much is too much. I will have between $35,000 and $40,000 of loan debt for 5 years of undergrad. For me that is good. I will have an engineering degree and will be able to get a good-paying job. On top of that I have never had an expensive lifestyle so paying the debt off shouldn't be too bad. But now I want to go to law school and unless I get some merit aid all of it will be paid for with loans. A law job will most likely pay more than an engineering job but there are no guarantees and I have no illusions about it. But going into debt is the only way for me to be able to get the kind of job I want. I suppose I could work and go to school part-time but that would take many years and I am not that patient.</p>
<p>Look at the pay-off amounts. My niece borrowed around $17,000 (the maximum you can borrow for a Stafford loan) and is paying around $200 a month for ten years. But that is at a very, very low rate (It's now 2 point something percent). I suspect interest rates will be going up. Get a loan calculator and decide it it would be worth paying $1,000 a month, or $1,500 a month, or whatever for ten years.....</p>
<p>deadhead, what are your college choices?</p>
<p>wow you think educational interest is going to go up that much from 2% to what would that have to be 18%?
But when they consolidate loans, doesn't interest have to stay at the rate at which they were consolidated at , plus a few percentage points?</p>
<p>Consolidation takes weighted average of unconsolidated loans. It also fixes the rate to that weighted average of 10, 15,20,25 years; depending on the amount consolidated. Current stafford, plus, and other guaranteed loans are at historic low APR's but are guaranteed to substantially increase in June when the rates are reset. Unconsolidated loans are variable where as consolidated loans are fixed. </p>
<p>Play the cards right, sisters & brothers, and the payoff is really BIG. Learn the rules! Mistakes & lack of knowledge, are REALLY costly!</p>
<p>Damn. Damn, DAMN.</p>
<p>We have really smart kids and accomplished too. Too bad our educational system does't teach them how money really works. If you only listen to the banks, then you have lost the game. </p>
<p>Go find the formulas (yes, judy, there are more than one formula) for interest. Something they teach but for 1-2 hours in math. Move the variables around. Discover the unwritten variable.</p>
<p>I would like to know if anyone discovers the unwritten variable. I've already given you a hint and the answer. Post to this thread.</p>
<p>The $200 a month referred to a $17,000 loan; the OP was looking at borrowing almost 6 times that amount. So he'd be paying around $1200 a month IF he had the SAME interest rate as my niece...now imagine if it goes up!</p>
<p>thanks for all the replies everyone...dstark i really want to go to St. John's College in NM...as far as the loans go, i guess i will be in debt up to my eyeballs, especially since i probably wont have a high paying job when i get out of college like justinmeche--i want to be a writer.:)</p>
<p>i know at my daughter's school they have a year long course called senior insitute where cover the application process, financial aid, the cost of loans, setting up a budget and transitioning fron H.S. to college</p>
<p>deadhead06, you can be a writer and not end up in $100,000 in debt. The debt is too large. Find cheaper schools that have the great books curiculum.</p>
<p>I guess my question was that the student was not contributing anything financially to his education
the way I see it about $2,000 minimum can be earned during the school year to pay for books and expenses, and at least $3,000 should be able to be made each summer. Thats $20,000 and if the student was motivated enough could be more.
That brings his expected loan down to $80,000. If his parents contribute $20,000 a year which they should be able to afford if their EFC is over $40,000 then his total loans would only be $60,000 Still relatively high, but not that much if it includes going to your dream school. ( of course an alternate scenario is finding a cheaper dream school!)</p>
<p>Deadhead06.
I don't understand that if you don't qualify for need based aid, then why do you need to borrow full cost of schooling? Please clarify.</p>
<p>Sounds like his EFC is $40,000 + more than one year of school at the most expensive schools. Also sounds like his parents have significant income but also significant expenses, and they have only committed to paying $15,000 to $20,000 a year, so he is interested in attending a school where the balance will be quite large after his parents pay for some.</p>
<p>There is an article from the Associate Press today which profiles graduates struggling with debts of $20,000 to $40,000 after graduation. $100,000 in debt is going to impact a person's lifestyle. Your choices are going to be limited after college. Interest rates are expected to be 1.25% higher in the latter half of 2005 than 2004.</p>