Is $10k+/year in loans bad?

Parents Forum
1

<p>Earlier, I posted in the Swarthmore forum about my poor financial aid package and financial dilemma. I've written letters, emails, made phone calls, visited the financial aid office and more to try to negotiate for a better deal at Swarthmore. I've contacted both the dean and the director of financial aid in hopes of squabbling more money. Unfortunately, my efforts failed.</p>

<p>The more I looked to make Swarthmore affordable, the more it seemed impossible. Ever since my visit to Ride the Tide(admit weekend), I've been trying to convince myself that maybe I'll be just as happy elsewhere, slowly pushing Swat away. Undergrad is simply what I make of it, and med school will be what really matters in the end.</p>

<p>But as I spoke with my family tonight, we've started to consider that maybe my parents can pay to the best of their abilities while I take out $10k+ of loans in my name. My parents have always been about sacrifices, and I feel bad having to put this sort of financial pressure on them if I choose to make this decision. Binding myself to $10k+ in loans per year does not ease my anxiety either.</p>

<p>I suppose what I really want to know is...</p>

<p>Is it worth accumulating over $10k+/year in loans to attend Swarthmore? I feel that Swarthmore is truly where I want to go, the college I'd be happiest. But something tells me that it's more important to help my family out.</p>

<p>I'd like some advice from current students and any parents who are experiencing a similar situation or who are knowledgable about loans.</p>

<p>I'm not very educated in loans and such, but I do hope to make a wise decision.</p>

<p>Please please help as I only have this last day to really make my decision.</p>

2

<p>Try this handy loan calculator to see what kinds of payments you're obligating yourself & your parents to come up with in order for you to go to Swathmore. Consider going to a less expensive school (in-state U or community college), doing exceptionally & transferring to Swathmore so you still get your degree but save those years of tuition, especially if you're seriously contemplating med school.</p>

<p><a href="http://finaid.org/calculators/undergradadvisor.phtml%5B/url%5D"&gt;http://finaid.org/calculators/undergradadvisor.phtml&lt;/a&gt;&lt;/p>

3

<p>What are the opportunities for working on campus during the school year and elsewhere during the summer?</p>

<p>Can Swat guarantee you that you'll have the same amount to pay every year - i.e. if tuition goes up $3,000 next year, they cover that $3k?</p>

<p>Do you have younger siblings, and will Swat adjust financial aid when they go to college? Often, schools insist that parents broker themselves for the eldest child, but the kids after that get sweet deals. (I guess it is because the colleges don't want to guess at what the younger kids are going to cost - they might not go to school, they might go state, or they could get merit aid, or they could go to an expensive school without much aid.) Talk to Swat financial aid about this - they'll give you some insights. </p>

<p>There's a difference between delaying retirement for a year or two and completely raiding retirement funds for college. Understandably, you are concerned about your parents - I would suggest a very frank talk with them. There is a tremendous amount of guilt associated with having your parents pay that much money for college.</p>

<p>Finally, this is something I try to hammer home, being a starving law student: do NOT think of post-secondary education as being four years. Somehow, if you want to go to med school, you'll have to finance that, too. Consider that tuition at med schools alone is topping $40,000/year for out-of-state students and private schools. Between tuition, room, board, books, fees, and the fact that it's only going up, consider that med school is going to cost $300,000 if you go private. </p>

<p>Two ways to look at this: if you're dead-set on med school, the Swat loans are a drop in the bucket. Or, med school is so very expensive anyway that you don't want to spend your life in debt. </p>

<p>Also, that $40k in loans will be deferred while you complete your medical training. Assume that it will balloon to between $60k and $80k because of interest, unless you're getting subsidized federal loans for it.</p>

4

<p>What if you don't go to Swarthmore? Would you be willing to share what your alternatives are, and how you feel about them--from both an educational and a financial perspective?</p>

5

<p>
[quote]
Can Swat guarantee you that you'll have the same amount to pay every year - i.e. if tuition goes up $3,000 next year, they cover that $3k?

[/quote]
</p>

<p>They claim to leave family contribution the same and increase the aid portion when tuition increases.</p>

<p>Additional kids in college simultaneously will decrease expected family contribution.</p>

6

<p>What's the alternative?</p>

<p>Med school is going to be 200K plus. If you are good enough to get into Swarthmore, you are without a doubt good enough to get into med. school, regardless of where you do your undergrad (though the chances of your being in the bottom half of your class at Swarthmore are very high, so your chances might actually diminish - this is an unknown.) The biggest challenge you will have with med school is how to pay for it.</p>

<p>"Ever since my visit to Ride the Tide(admit weekend), I've been trying to convince myself that maybe I'll be just as happy elsewhere, slowly pushing Swat away."</p>

<p>I take it you were "underwhelmed"? You didn't come away thinking "I have to go to Swarthmore, regardless of the sacrifice," did you?</p>