<p>**A note from the moderator:</p>
<p>Taxguy started three threads on the same topic with the same post on three different forums: The Parent Forum, The Parent Cafe, and The Arts Majors Forum. Rather than three separate discussions on the same topic, along with copied posts between them, we have merged all three threads into one and it is featured on our main page as well as in the Parents Forum with redirects from the other two forums.</p>
<p>Please realize that when threads are merged, all the posts are inserted in chronological order. Thus, responses to posts may appear a bit out of sync since discussions are combined.**</p>
<p>Here is a post that I did concerning majoring in art at CMU. However, it may be applicable to any art, design or theater major. It will give you something to think about.</p>
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<p>Be advised: CMU themselves noted that total cost of tuition, room, board, fees and books will exceed $50,000 per year. This also doesn't count transportation home, medical insurance of $900 per year etc. The admission's officer that I spoke with mentioned that the actual cost is $52,000 per year if everything is filtered in. This also doesn't take into consideration future cost increases!</p>
<p>Sadly, whether you major in computer science, engineering or business, which can command some high paying jobs or art,which usually doesn't pay as well, the tuition, fees and room and board is the same.</p>
<p>Kakle, here is what it takes to amortize $150,000 of debt over 15 years:</p>
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<p>Principal borrowed: $150000.00
Annual Payments: 12 Total Payments: 180
Annual interest rate: 8.00% Periodic interest rate: 0.6667%
Regular Payment amount: $1433.48 Final Balloon Payment: $0.00</p>
<p>The following results are estimates which do not account for values being rounded to the nearest cent. See the amortization schedule for more accurate values.
Total Repaid: $258026.40
Total Interest Paid: $108026.40
Interest as percentage of Principal: 72.018%</p>
<p>Thus, they would need to pay $1,433 per month just to pay off their college debt! This is in addition to taxes,which takes up about one-third of their salary, mortgage or rent payments, car payments, food, insurance, gifts, travel, entertainment.etc. I think you get the message.</p>
<p>Also, for $100,000 in debt, the monthly cost to amortize it over 15 y ears would be $955.</p>
<p>Interestingly, assuming no college debt, if you take the same $1433 per month and invest the money at 8% for the same 15 years, they would have $273,941 at the end of 15 years! Note, the same $1,433 per month for 30 years would be worth $582,107. For 40 years it would be worth: $808,960</p>
<p>Thus, unless you get some substantial scholarship money, tell me how a person who majors in art, education or other low paying major will be able to afford paying off this debt?</p>