<p>I was admitted to the Engineering School of UCSB for Fall 2012. I love computers and fellin love with UCSB at the Spring Isight this last weekend. However, I only received a 5.5k Stafford loan in aid for UCSB. The rest of my school would be covered by a private loan I would have to pay off later in life. My question is whether or not you think the debt I'll accumulate will be worth a degree in Computer Engineering and having a great 4 years at UCSB. Thanks.</p>
<p>No.</p>
<p>Are you saying that your parents aren’t contributing anything towards your costs?</p>
<p>Who would be co-signing those private loans? </p>
<p>That is waayyyy too much debt. You’re talking about $30k per year in debt. That’s FOUR TIMES the amount of debt you should have.</p>
<p>My parents make great money on paper. But on paper, they don’t ask for your monthly expenses and therefore, my parents can’t afford to contribute at all. My parents would be able to funnel me small spending money amounts per month, but they cannot help pay for school. My parents would be co-signing the loans.</p>
<p>Why won’t your parents take PLUS loans? Your EFC must be pretty high, why are your parents not able to contribute anything?</p>
<p>It would be very foolish for your parents to co-sign that much in loans. You would be ruining your life and your parents should be the adults in this situation and say “no.”</p>
<p>Do you have any idea of how high your monthly payments would be for TEN LONG years?</p>
<p>That is way tooo much debt.</p>
<p>So would you suggest I go to SDSU and take out the Stafford and 6K in private loans?</p>
<p>You and your parents need to understand the ramifications of what cosigned loans are. These loans are available, because the lender has two people, you and the cosigner, to go after if either one of you is unable to make the payments. The nature of these loans are such that they are not dischargeable in ordinary bankruptcies either. As long as the loans are not paid off, they will be on your parent’s AND your credit records. We are not talking 3-5 years as in a car payment but for much, much longer, and for much more. If anything should happen to either of you, the other remains liable for the payment. </p>
<p>If your parents can truly afford to repay these loans, or in other words pay for this college experience for you over a 10-14 year period of time, then they can do so with PLUS or other loans, maybe without such a high interest rate and get a private loan agreement from you. Why saddle both of you to a lender? If you can pay, you pay them and have a contract between you. You are paying a premium to have this being a co-signing issue. There are a lot issues involved when you do this, if one of you should die, become disabled, etc. </p>
<p>Are you commuting to the college? How much total do you need, and of that amount, how much can you and your parents pay out of savings and current income? Believe me, paying out of future income is very difficult. Things come up in the future too, and you could be stuck living with your parents for a long time, paying this off, at very best. My kids have no loans, and are struggling, One has been out of school for a while now, and it is so difficult to make ones way with a place of ones own, a car and other things even without a student loan payment. It really puts you behind the 8 ball.</p>
<p>Thanks for all of the info. I’d be taking out about 35k a year for the school.</p>
<p>I suggest that you go to an affordable school.</p>
<p>YOU’RE the one who says that your parents make a good income, but they can’t afford to contribute for your college costs because they have living expenses to pay for.</p>
<p>OK…so…you’re going to have living expenses to pay for. Sooooo, how would YOU be able to pay $1400 a month in loan payments for 10 years, when your parents can’t give you hardly ANYTHING for college…not even $400 a month! </p>
<p>do the math. If they can’t give you $400 a month for college, then YOU won’t have $1400 a month for loans.</p>
<p>I feel like you’re saying my parents are at fault for not being able to contribute. They have monthly bills and a mortgage to pay. I don’t know many families who can shove out 2k a month for no reason. I asked for insight and advice not criticism about my parents.</p>
<p>Joining the chorus - and adding that to make a $1400 monthly payment, you’d need to make something like $2500 a month, pretax, or $30,000 a year - PLUS money to live on - for TEN YEARS! </p>
<p>For an engineer, there is little advantage to a more prestigious school, as long as your school is ABET certified. </p>
<p>Given your circumstances, I’d also strongly consider starting at a community college that has an articulation agreement with a reasonably priced engineering school. There is no real downside.</p>
<p>I share the concerns above about the level of debt–it’s not a good plan. But in addition, this plan might not even be possible, given the amounts you are talking about. Have you investigated whether or not you even qualify for these loans? </p>
<p>Cosigned loans will be part of your parents’ credit history. Even if you can get a private loan this year for $30K, you might not be approved in later years once you (and your parents) have that additional debt. What if you are a junior with $60K (plus interest) debt, or a senior with $90K+ debt and you don’t qualify for more?</p>
<p>Do you know your parents’ credit score? The interest rate you are offered might be very high and get higher (most of these loans have a variable rate). In that case the payback figure could be even greater than $1400/month–much greater if the interest accrues while you are in school.</p>
<p>The best option here is to go to CC and transfer to Cal Poly SLO. It’s not ABET accredited, but it’s in the process and is highly regarded by employers, especially in California. You’ll save tons of money by staying home the first two years at a CC and Cal Poly will be much cheaper than a UC, but just as prestigious, and you’ll graduate with much less debt.</p>
<p>Any opinions on living at home and attending SDSU?</p>
<p>
People aren’t criticizing your parents. You are missing the point. You stated that they make “great money on paper”. Presumably they have been working for awhile and have worked their way up to better than starting pay positions. When you graduate, you will be making great, but probably less, money on paper. But you will also have rent and bills to pay. Given their great income they still can’t afford to contribute to your education. Given your somewhat less than great income, how will you be able to make those large payments?</p>
<p>Most parents who make “great money on paper” are able to contribute to their children’s education. You still have not clarified what it is that has so maxed out your parents that they are unable to do more then slip you a few bucks for spending money.</p>
<p>Do you have work yourself? Many students have full time summer work and often part time during the school year. At minimum wage you can probably bring in $5-6K yourself to contribute.</p>
<p>How much would it cost you to live at home and attend SDSU?</p>
<p>Sylvan reflected my thoughts: no one is criticizing your parents, they are just pointing out that you will also have bills topay in the future, and you would be tied to a huge loan payment every month. I have tried to explain this to my own kids. My 1st has a $450/month loan payment, makes good money, can pay the payment, her very high living expenses (due to where she lives) and still save and also go out and have fun. My 2nd who is about to graduate, will have about a $250 payment. this was kept low due to the field she is going into (teaching), and the fact that her job will pay less money - if she can find one!
My 3rd, about to go off to college next year, will also have his loans kept to 20 - 25,000, due to the field he is choosing to go into, but he really has no idea (as most kids your age don’t) what living expenses consist of and what salary you have to make to cover them. Again, not a criticisim, just that most kids don’t know that information.
Does your local community college have any 2 + 2 programs so that you can live at home for 2 years and take less expensive classes, and then transfer to a 4 year college?</p>
<p>35k a year it way too much to be taking as a loan. 140k doesn’t buy you much in CA but it sure is a lot of money. Engineers do not make much money over the long run. Many see pockets of unemployment. Don’t fool yourself into thinking you will be able to pay it back easily. You will be just like your parents with a good income but no real money to buy what you want.</p>
<p>To answer your question, NO, it’s not worth it. $140,000 is about 5 times the maximum loan I would be comfortable with. Borrowing that much is a BAD plan. You need to find an affordable school. How much would you have to borrow to go to SDSU and commute? How much would you have to borrow to attend your local community college? Will your parents be in more of a position to help you in a couple years? Going to the CC and then transferring to UCSB might work (and your degree would be from UCSB), but if you’d still have to borrow $35,000 a year, then it’s a problem because $70,000 is still an awful lot to be saddled with.</p>
<p>Attending SDSU would be 10,000 a year to commute. Again, all in loans.</p>
<p>The San Diego area has several fine community colleges where you can commute to and get your general ed requirements out of the way. Then transfer to either Cal Poly SLO or Pomona, or perhaps by that time your parents will be in a better position to help with a UC school. Either way, trust me, your degree will say the name of the granting institution, you will save upwards of 100K, and you will have an outstanding education. Don’t fall for the hype and glossy brochures. There are tons of disappointed folks out there with 100K+ in loans, a degree from a prestigious school, no job, and limited futures. The smart money is on the kid with the degree and little or no loans. The world is his/her oyster. Good luck to you!</p>