Is Duke worth graduating with 120k of debt?

<p>Duke is my dream school, and I was so pumped to have gotten in. However, my parents financial situation has unfortunately caused me to receive no financial aid grants, as they make too much for financial aid, but not near enough to blow 240k on college, seeing as they still need to send 2 more kids to college in a few years. They said they're willing to pay 25k. Minus the money I earn working during the summers, and the 2.5 work study, I would have to take out around 30k of loans with my parents each year, graduating with 120k in debt between my parents and myself. I really want to go, and just wanted to get your opinions on whether or not I should take it on. I am also planning on going to law school/business after college, so thats even more money. In comparison, at Northeastern, non-honors, I would graduate with 45 in debt, and at Bucknell i would graduate with 65, however those schools are not close to Duke in terms of prestige. Any advice would be very welcome. Thanks!</p>

<p>I’d be the first to say that I love Duke and would not ever regret choosing to go to Duke. That said, I was also fortunate enough to graduate from Duke debt-free and will remain debt-free throughout postgraduate training. </p>

<p>However, choosing to take on twice as much debt simply because of prestige I think is not a very good idea. Both Bucknell and NE are pretty decent schools and I’ve always been a firm believer that postgraduate admissions are overall pretty blind to where you went to school versus what you actually did there. The only difference would be the opportunities available and even then, I think there are a lot of quality opportunities available to Bucknell and NE students. </p>

<p>So basically it comes down to what you see in Duke that makes it your dream school and if those qualities or assets are worth 55K plus interest. (Of course as a Blue Devil, I would be very happy if you chose Duke)</p>

<p>I’m sorry that you are put in such a difficult position but as a word of comfort, sometimes what you think is your ideal situation may not be all that much better than your other options and your other options may end up surprising you. Don’t forget that in the end your ultimate goal for college is to be happy and to get a good education so that you can advance. Best of luck.</p>

<p>What are your current plans for a major and life after graduation? One often cited rule of thumb is don’t take out more in loans than you expect to earn your first year out of school. However, if you are planning to enter a high paying profession, or hoping to go to a prestigious graduate or professional school after undergrad, a Duke degree might or might not be worth this extra cost.</p>

<p>That being said, this is a substantial difference in cost which requires careful thought. I wish you the best in choosing a school that you will be excited about attending.</p>

<p>If your academic record is good enough to be accepted to Duke, you should be able to qualify for quite a bit of merit aid at a large number of state schools. This should easily put you under your parent’s budget of $25k/year.</p>

<p>You might consider taking a gap year so that you can maintain first year status wherever you end up. Merit aid is generally far more generous for freshmen than for transfers.</p>

<p>WiredLocke, my daughter is in the same situation as you. It’s a tough decision because emotions are such a big part of it. We did qualify for some aid, but not much. With what we can give her (more than we planned), she would still need loans and have to work a lot. </p>

<p>There are many opinions about having such large loans after graduating. As a parent, we would never want her to put herself in such debt before she even has a job. I’ve also spoke with her about the stress that would come with major loans. She would have to be prepared to sacrifice during these years. </p>

<p>My daughter just returned from Blue Devil Days and absolutely loved it. Duke has so much to offer that it would be difficult to turn down. However, having a $120K debt would also change your life. This is probably just confusing you more. No one can give you the right answer. We are right there with you. If you believe in prayer, then pray and keep your mind open. If you were accepted into Duke, I have no doubt that you will be successful wherever you end up.</p>

<p>$120k is a bit rough to deal with. Depending on your plans, it could really hurt you. If you go to medical or law school, you can plan on tacking on another ~$200k. Also, a lot of these loans would be private, which can be a bit less safe to work with.</p>

<p>Even if you don’t need to pay for graduate school, it would still make life harder. You could even plan on landing the perfect job at a top I-banking firm, raking in >$100k right after graduation, and that would still be a major financial burden.</p>

<p>Not to mention student loans (guaranteed by the federal government) cannot be discharged in bankruptcy and if your parents are co-signers, then they are on the hook if you can’t pay.</p>

<p>Too much money. Whats the cost vs. the benefit?</p>

<p>@WiredLocke, Your parents should get the book “Paying for College without Going Broke”, by Kalman Chany. I got it and there is a lot of great advice. It won’t help for this year, but could maybe help with the remaining years. Your parents can also check into a financial aid counselor.
“Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents” would be a good book for not only your parents but you. </p>

<p>If you want to discuss further, just pm me. I should know by next week if Duke is doable.</p>

<p>Don’t do it.<br>
$1380.96 monthly payment? That’s higher than my mortgage + property tax + home insurance. O_O</p>

<p>==================
From [FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>

<p>" Loan Calculator</p>

<pre><code>Loan Balance: $120,000.00
Adjusted Loan Balance: $120,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years
Minimum Payment: $50.00

Monthly Loan Payment: $1,380.96
Number of Payments: 120

Cumulative Payments: $165,715.88
Total Interest Paid: $45,715.88
</code></pre>

<p>Note: The monthly loan payment was calculated at 119 payments of $1,380.96 plus a final payment of $1,381.64.</p>

<p>It is estimated that you will need an annual salary of at least $165,715.20 to be able to afford to repay this loan. This estimate assumes that 10% of your gross monthly income will be devoted to repaying your student loans. This corresponds to a debt-to-income ratio of 0.7. If you use 15% of your gross monthly income to repay the loan, you will need an annual salary of only $110,476.80, but you may experience some financial difficulty.This corresponds to a debt-to-income ratio of 1.1."</p>

<p>Did you choose Duke?</p>

<p>yep, haha. Time to bring on the debt!</p>

<p>All i can say it, best of luck. You can still apply for external funding while you are there to help soften the blow. Maybe you’ll get lucky and win a scholarship.</p>

<p>You made a very bad decision. I can’t fathom how you even got the loans. You had better not be an arts major.</p>

<p>Best of luck.</p>

<p>I’ll be graduating from Duke in a couple years with some debt but not as high as yours. I love the school but I’m not sure what I would do in your position. What are you studying?</p>

<p>You made a bet on yourself. I’m sure it’ll pay off. Duke will take you to places that you could only dream of at Bucknell.</p>