<p>What is the interest? and what kind of loan? how to repay?. just student loans</p>
<p>Your parent would have to cosign for you. Stafford loans that a student takes out are limited to $27K total in undergrad, parsed out over 4 years.</p>
<p>what is my interest? ive done some research it says 6.8% … 6.8% increase each year or what? I used the interest calculator at their website. I put in 50,000 as the loan amount and my total = 111,000 ***? is this loan shark? </p>
<p>i loan 50k and my interest that i need to pay them is 60k? r u kidding me… i dont get the calculator at all.</p>
<p>Why would you saddle yourself with such debt?</p>
<p>Well, to begin with, you can’t get $50k worth of Stafford student loans for undergrad- you’re limited to $27k total.</p>
<p>Your parents have to help you here. They shouldn’t – $80k in loans is an extremely bad idea – but if you insist there’s no way you can personally get hat amount in loans unless you have a good job, a strong credit history, and other ways to prove that you won’t default.</p>
<p>i loan 50k and my interest that i need to pay them is 60k? r u kidding me… i dont get the calculator at all.</p>
<p>Ok…why are people now using the word “loan” instead of “borrow”? You are not loaning $50k…you’re the borrower…you are borrowing. </p>
<p>And, that’s waaay too much money to borrow. Too much. And, your parents would have to qualify and co-sign…and most parents won’t do that.</p>
<p>And, you may not get that rate for the amounts that are in excess of Direct student loans…your rate could be 7, 8, 9, 10% or more.</p>
<p>YOU can only borrow…</p>
<p>5500 frosh
6500 soph
7500 jr
7500 sr</p>
<p>to borrow more requires qualified co-signers who have re-qualify every year. That can be a problem because after the first year or two, your co-signer’s credit will be hurt by all the co-signing debt.</p>
<p>^ mom, if it makes you feel any better, I’ve NEVER heard that outside of CC. Although here, I’ve seen it more times than I would care to. Hmm…</p>
<p>You can actually borrow $31k in direct loans as a dependent undergrad (you are able to borrow for more than 4 years - but the aggregate cap is $31k).</p>
<p>An independent undergrad has a $57,500 aggregate limit.</p>
<p>^ You’re right about the amount, but I think you mean dependent, not independent :).</p>
<p>what about interest rate? if i borrow 31k? how much do i need to repay in total?</p>
<p>
I don’t know what website you are using or what numbers you are inputting. But you are definitely entering something wrong to come up with $111,000 for a $50,000 loan ( if you are paying it off monthly for 10 years).</p>
<p>What data are you entering?</p>
<p>
Good catch. I did mean dependent. I must have been changing it as you were posting.</p>
<p>
It depends. </p>
<p>If you are only eligible for unsubsidized federal loans, The current interest rate for unsubsidized federal student loan is 6.8%. If you pay the interest each year while you are in college and have $31,000 debt by the time you go into repayment, then the monthly payments would be around $357 every month for 10 years and you would end up repaying a little under $43,000 - so about $12,000 interest.</p>
<p>If you do not pay the interest while you are in college the interest is added to the debt, so the debt would grow by several thousand dollars by the time you go into repayment, making your monthly payments higher and your total interest higher.</p>
<p>Loan Calculator</p>
<pre><code>Loan Balance: $80,000.00
Adjusted Loan Balance: $80,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years
Monthly Loan Payment: $920.64
Number of Payments: 120
Cumulative Payments: $110,477.25
Total Interest Paid: $30,477.25
</code></pre>
<p>Note: The monthly loan payment was calculated at 119 payments of $920.64 plus a final payment of $921.09.</p>
<p>It is estimated that you will need an annual salary of at least $110,476.80 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 $73,651.20, but you may experience some financial difficulty.This corresponds to a debt-to-income ratio of 1.1. </p>
<p>However, I don’t think you’d get that interest rate for the entire $80k. I think the interest rate would be higher.</p>
<p>If you borrow $31k…</p>
<p>Loan Calculator</p>
<pre><code>Loan Balance: $31,000.00
Adjusted Loan Balance: $31,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years
Monthly Loan Payment: $356.75
Number of Payments: 120
Cumulative Payments: $42,809.83
Total Interest Paid: $11,809.83
</code></pre>
<p>Note: The monthly loan payment was calculated at 119 payments of $356.75 plus a final payment of $356.58.</p>
<p>It is estimated that you will need an annual salary of at least $42,810.00 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 $28,540.00, but you may experience some financial difficulty.This corresponds to a debt-to-income ratio of 1.1. </p>
<p>I think the OP is a transfer student, so he may be looking to borrow large amounts for 2 years. If so, if he hasn’t borrowed anything yet, then I don’t think he can borrow the $31k fed loans for just the last 2 years, right? What can he borrow? 7500 each year? ($4k more if his parents are declined for Plus??)</p>
<p>I think his intent was to borrow $80k…which would be $40k per year for his last 2 years.</p>
<p>yes im a transfer student. I never thought interest rate would be that high !!! i mean it is like a loan shark company or something. Seriously kidding me. let say that i borrow 31k and i need to pay 356$ per month. Can i just pay atleast 50$ base on what the standard repay plan said? or do i need to pay exactly 356. Seriously 356 per month is hell a lot. I heard that u can pay 50 dollar each month if i want, but atleast 50 or more.</p>
<p>Also the 80k interest is out of my reach. Interest just killing me.</p>
<p>I believe the minimum monthly payment is $50, but that’s only if you don’t have loans that would require MORE than the minimum. Say, if you had loans of only $1K and a 10 year standard repayment, you would only pay $50 per month but the loan would be paid off long before the 10 years were up.</p>
<p>Federal loans do have other repayment options such as income based repayment and income contingent repayment. Those can result in a lower monthly payment but a longer payback period…and more interest will accrue. You can play with the loan calculators at finaid.org and get an idea of what the payment would be for different scenarios.</p>
<p>I don’t think the 6.8% interest rate is high considering these are unsecured loans being made to students with little/no credit history. Try going to a bank for a loan with no collateral and no credit…it’s very difficult to borrow money, and it should be! If you don’t feel that you’ll be able to pay $350 a month on a $30K loan then that’s your cue not to borrow so much.</p>
<p>
No, you are misunderstanding. You can’t just pay $50 a month is you have borrowed $31,000. The $50 is the minimum payment you can make. This means if you have a loan where the monthly payment would only be $45, you would have to pay $50 as that is the minimum. But if your loan has a monthly payment of $350, then you have to pay $350.</p>
<p>If you are unemployed or making very low income it is possible to defer payment or pay a lower amount, But then the interest keeps accumulating and adding to the loan so in the long run you actually pay much more.</p>
<p>Remember the amount you can get a year is limited. ($5500 freshman, $6500 sophomore, $7500 3rd year and up). The $31,000 is the aggregate or cumulative total for a dependent undergrad student.</p>
<p>
Right
yes. $7500 each year (if he is Junior standing).</p>
<p>$40,000 a year would mean either parents would have to borrow the difference or they would have to cosign a loan for the student. </p>
<p>I sincerely hope the OP is not actually planning to go to a school that will require borrowing $80,000 for 2 years. A plus loan has a higher interest rate (7.8% I think), and at 7.9% the repayments would be almost $1000 a month every month for 10 years.</p>
<p>*an i just pay atleast 50$ base on what the standard repay plan said? or do i need to pay exactly 356. Seriously 356 per month is hell a lot. I heard that u can pay 50 dollar each month if i want, but atleast 50 or more.
*</p>
<p>Think about it…these big loans would never get paid back if people only had to pay back $50 a month. </p>
<p>Like Swimcatmom says, that $50 per month would be the lowest amount a person would have to pay each month if they borrowed a small amount. Some people only borrow a total of $1000 or so. So, their minimum payment might be $50. </p>
<p>Hopefully, you are quickly realizing that borrowing a lot of money is NOT a good idea. </p>
<p>Is there a UC or CSU that you can commute to and finish your education there?</p>