is 14K/per yr in student loans too much for USC???

Colleges and Universities A-Z University of Southern California
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<p>I received my fin. aid package and USC(for undergrad) is charging me about 10K more(overall) than my second choice school. However, in terms of loans, im looking at about 14K( 2K of which is work study).</p>

<p>im not sure if this is normal for an undergrad or too much.</p>

<p>does anyone have any opinions or would be willing to share their loan package and thoughts/plans??</p>

<p>just kinda need some advice here, I know USC is a great school, but not sure if 14K per year in loans is average for every student or too much. I saw some other posts where ppl said about 25K was a general guideline for manageable undergrad debt, but I wasn't sure if it meant for one year or after four yrs. </p>

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<p>Student loans in the financial aid package for dependent students are limited to $5,500 for freshmen, $6,500 for sophomores and $7,500 for juniors and seniors. Independent students may borrow $9,500 freshman year, $10,500 junior year and $12,500 junior and senior years.</p>

<p>Federal work/study is NOT a loan. It is a job. You apply for a job, work, and are paid for your work. Work/study is not paid back, so it is not a loan.</p>

<p>If you are a dependent student, are you including a Parent PLUS loan as part of your $12,00 total of loans? If so, a Parent PLUS loan is not a student loan, it is a loan that your parents take out and that your parents must repay - have they agreed to that? If you are a dependent student it is likely that you will not qualify for loans of $12,000 or more per year without a cosigner.

That would be for FOUR years. In general, the standard Stafford complement of loans that add up to $27,000 over four years is the maximum student debt advised. In most cases, students are unable to borrow more than that on their own. You will need to ask your parents if they are comfortable with the additional debt they will have to take on, or if your more affordable school is the better option.</p>

<p>Good luck.</p>

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<p>so after I graduate, I would be paying back the Stafford loan (subsidized and unsubsidized) and the perkins loan correct?</p>

<p>the rest of the loans(as in the PLUS) as well as the EFC would be taken on by my parents?</p>

<p>so after four yrs, the total debt “I” as a student would have to pay back to USC is the total amt. of Stafford loans per year and perkins loans per year x4? is this right </p>

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<p>Did USC give you $6500K in Perkins loans? That’s an awful lot of loans, though the Perkins and Direct Subsidized loans, which amount to about $10K freshman year will not accrue interest until you are no longer a full time student. You do realize that at this rate, you will owe over $50K in loans in four years, as the unsub parts will be accruing interest at about 4% the instant they are disbursed. Costs go up and so you are very likely to get an increase of $1K sophomore year and $2K for jr and sr years just because your Direct Loan allotments go up, which will bring you at least into the mid $55K range at this rate. That is a lot to repay. </p>

<p>Work study is not a loan and you won’t get that money until you earn it. You have to find a job from the Work Study list when you get to the school that works with your award amount and your schedule, work the job, and wait for your paycheck. You are not likely to see a paycheck until well into the month of school starting or even the next, depending on how fast your find a job, when it starts and when the pay periods are. </p>

<p>How much are you and your parents expecting to pay to USC for your first term? You will be billed a semester’s tuition and usually the whole year of fees first term. If you are living in their housing, you will be charged room and board for the term. You will get half the loans they have listed, if you accept them as a credit to your account along with any deposits you and your parents pay. The work study, as I said, will not show up because you get that via a paycheck when you work the hours after you find the job,. Unless you got some other scholarships, you or your parents have to pay the rest of that bill, and if you just got the loans and WS, that’s only $6K credit on your account for first term. You have to also have seed money for transportation, supplies, sundries and books. Can you afford this school?</p>

<p>I would not think USC would throw PLUS (Parent loans) into a financial aid letter, though they may refer your parent to that option. PLUS is not guaranteed. A parent has to apply, get a credit check (all on line and quick), get approved. The interest rate is about 7%. This is a loan for PARENTS not you. IF the parent gets turned down, you can get an additional $4K in Direct unsubsidized loans.</p>

<p>You do need to discuss with your parents how much they can pay for your education. Also the whether taking out all of these loans as a young adult is a good idea. If they can maybe help you with them, it’s one thing but if they are stuck taking out loans to pay what USC expects them pay, that may not be an option. </p>

<p>The Direct loan maximus is $27K over 4 years. With maximum subsidies, we are talking about owing about $30K over 4 years, and you will find a lot of college grads owing that. Not a pittance, it hurts, but doable. You are talking about taking at least $4500 in Perkins loans each year in addition to that, if I understand you correctly, which is an additional $18K if USC does not increase the face amount of those in future years. They are subsidized, so they won’t accrue interest while you are in school but you are talking $50K at least here, probably do some numbers as to what you will be paying each month for a long time. </p>

<p>For some… yes, it’s doable, if parents are in good financial shape and are willing to work with the student for a very long time on this. So you have to talk to your parents about this kind of commitment.</p>

<p>Be aware that borrowing this kind of money as an undergrad puts crimps on a lot of thing after graduation including maybe borrowing yet more for graduate or professional studies. If you are going into a field of study which promises lots of jobs at a good pay, it might be worth the risk, and risk it is that you will make it through that program, as most kids do switch gears in college. It’s perfectly normal and natural to do so, and to be so stuck at age 18 is not. But if you are on the line to deliver that kind of money, it does put on that kind of pressure. </p>

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<p>@Dream4Life: I think this is the right time to put your 2nd choice to the equation. $10K/year more would be hard to justify if your other choice is better than or the same as USC in ranking, major, environment, etc… It would be especially true if you and your parents would have to take out loans to support that. Frankly, if you are studying an engineering or other majors that can more easily find a job after graduation, it would certainly alleviate some pain, otherwise that amount of loans would inevitably limit your future options in becoming independent financially. </p>

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<p>thankyou so much for helping me out cptofthehouse and nvaparent</p>

<p>@cptofthehouse - my parents are willing to help me out in terms of paying the EFC. Yes you were correct this doesn’t say anything about PLUS loans for them. I also realize that the student loans I am taking will accrue interest.</p>

<p>just to be clear, this is the part directed towards me in the package:</p>

<p>student loans:
fed. direct stafford: 5500( unsub and sub combined)
FED. PERKINS loan: 5500… can someone explain this???</p>

<p>so as u can see, interest over a per. of 4 yrs would accumulate.</p>

<p>I am planning to major in engg. would such a career help ease these debts</p>

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<p>This is completely manageable. I completed both my masters and bachelors (progressive degree) at USC with over $75k. 7 years later, I have paid off all my student loans. It was a combination of Stafford (sub & unsub), Private loans, Perkins loans, some PLUS loans by my parents, and work study (for some weekly spending money). </p>

<p>The real question is your commitment. What you propose is possible, if you work at it. In school, get good grades, participate in extracurriculars, and internships (network!). Then, after graduating from USC Viterbi, get a job and pay off your highest interest loans first. </p>

<p>Don’t let money be your only barrier to a USC education. The whole experience is worth every penny. B-) </p>

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<p>I’m not sure about this. Does your FA include any grants or scholarships or is it all loans? </p>

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<p>Thankyou for the input portbrew=),</p>

<p>And artsandletters yes they gave me a considerable amt in gifts and scholarships. The remaing 12k was split into these student loans</p>

<p>Would anyone mind sharing thier loan package or experiences/plans to pay them off?</p>

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<p>11K (5500 + 5500) </p>

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<p>So your package with Stafford, Perkins and work/study totals the cost of attendance? It looks like you were given the Perkins to replace your summer earnings contribution - nice.</p>

<p>The Perkins in the most advantageous loan in your package. It has a slightly lower interest rate and, like the subsidized Stafford, does not accrue interest until 6 months after you graduate or stop attending full-time. I would recommend cutting expenses (buy used books, choose the cheapest housing/meal plan, do free stuff for entertainment to cut personal expenses, etc.) and not taking the $2,000 UNsubsidized Stafford. Keep the Perkins and $3,500 subs Stafford. That is completely possible.</p>