<p>Is 9k loans per year worth it to go to ucsb? also what if i send in a sir and the official financial aid isnt good?</p>
<p>Are you an independent student? If you aren’t, then you are limited to the Stafford Loan maximums, and borrowing more than that will require a co-signer or that your parents take out PLUS loans.</p>
<p>9k per year would mean a total of 36k if you finish in only four years. That is high, but possibly manageable if you have the right major and can get a good job right after graduation. Do you have any other options? If you spend the first two years at a commuting distance CCC, and then transfer to UCSB for the last two years, you will save a ton of money.</p>
<p>Thnx for the response. i will take that into consideration.</p>
<p>It could be reasonable. It depends on your situation, your parents’ situations and your other choices. As Happymom brings up, where are you going to get the $9K since Stafford generally limit students to $5500. If your parents can afford to borrow $4K as well or pay it out of savings or current income, it becomes a very reasonable thing to do. If you and your parents have your backs up the wall financially, that’s a whole other story since $9K is just for one year which means you’ll probably owe closer to $40K, you and your parents, that is, in the 4 years it generally takes to get through college. The cost tends to rise each year too. Actually, it’ll likely be even more than that.</p>
<p>Punch out what $40K means in loan repayment. Know that if you DON’T get a job right away, that $40K can soar much higher if you have to defer. </p>
<p>I’d be very wary of that much debt unless you know that you are going to be in a very promising field.</p>
<p>Financially, we don’t have our backs to the wall but we don’t have a lot. They probably will help pay some of it so the loan will be a little less and i’m gonna look for a summer job. As for promising field, i don’t know exactly what i’m going to be.</p>
<p>My teacher recently had us read an article in class (don’t have the link sorry), and it said that you shouldn’t take out more loans total than you expect to make in your first year in the workforce. So if you expect to make $50,000 in your first year of work, you shouldn’t take out more than that the entire time you’re in college (according to the article). I’m not sure how they determined this but it seems like a good guideline to me, it may be something you want to think about. Hope this helped! Congrats on ucsb!</p>
<p>Thnx and that does seem like good advice. i’ll think about it.</p>
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<p>Depends on what you mean by “soar much higher.” A simple daily interest calculator indicates that a $36K loan at 6.8% will accrue $7,344 over 3 years if you don’t pay it off - and I used 3 years because that’s usually the limit for hardship forbearance. You’d be very unlucky if you were out of work for 3 years after college. That makes the new total just under $44K, which is higher than the original but I wouldn’t say that’s “much higher”.</p>
<p>If you’re only under forbearance for one year - which is much more likely - you’d accrue about $2500 in interest over that year’s time. That’s not very much at all, in the grand scheme of things. (Of course, you’d have to add the interest you accrued in college, but that’s going to accrue regardless of whether you find a job the day after or not.)</p>
<p>Finaid.org says that a $36K loan at 6.8% interest (assuming that you start paying it right after the 6 month grace period) will cost you $414 a month to pay off in 10 years under the standard repayment plan. You’d need a salary of about $50K to be able to handle this without much difficulty. I make close to that so I used my tax percentage (17%) to calculate about how much you’d have after tax and divided that by 12 to get your rough monthly income: about $3,458. Basically that means that after the loan payment you’d have about $3,000 left a month, which in a reasonably priced area should be comfortable to live on. I would agree that with a $36K loan you probably shouldn’t go much lower than $50K a year, but you’re also unlikely to make that much right out of college. Depends on what you do, of course.</p>
<p>hmmm. interesting info. also, idk what field i’m going into.</p>
<p>Personal experience… if you have to really borrow, don’t borrow more than what you need to live by. No smart phone or eating out… things of that nature. I’d say if the total loan amount is about 75% of your first year professional job, you can manage even if you go to a low paying profession, or steady paying profession. But that means you will probably drive a used car instead of something new and shiny for quite a few years. Some trade off to think about.</p>
<p>Doesn’t sound too bad.</p>
<p>You can’t earn $9k per year between a part-time job, term-time, and savings from summer employment?</p>