<p>COA: $53,000, including room and board</p>
<p>Financial Aid offer:</p>
<p>Scholarship $15,000
Grant $12,000
Subs. Loan $ 3,500
Work-Study $ 3,000
Unsub. Loan $ 2,000
Parent Plus $ 4,000</p>
<p>Total of Aid $39,600</p>
<p>Difference of $13,400 per year. We could come up with that amount ourselves. It seems to me that this offer might actually be better than a public university cost (about $28,00/year in our state), depending on the amount of aid from the public U.</p>
<p>That’s $12.5k a year in loans. After 4 years, that balance will be in excess of $50k because of unsubsidized interest. One good general rule of thumb on loans is that your total indebtedness shouldn’t exceed your expected income for your first year of post-college work. Are you interested in a field where a salary of $55k for a fresh-out is common? If not, this is too much debt. If your family would be taking out any additional loans to cover their $13k contribution, it is certainly too much debt. </p>
<p>You may be able to shave down the COA by trimming personal expenses and choosing less expensive room and board options. You can add another $2-3k to the amount you pay by working during summers, and possibly during winter break if you can find seasonal work. Keep in mind that the COA typically increases each year by a few percent.</p>
<p>Wait to see what type of aid package you receive from your public university.</p>
<p>What you will REALLY have to come up with is different than your estimate.</p>
<p>Your free money totals $27,000. Your student loans total $5500. That means that if you choose to borrow the student loans, you will have $32,500 to put toward the bill. Parent PLUS loans are just that … a loan that a parent “could” choose to borrow (and to be honest, your parent can actually borrow more … they can borrow COA-total of student aid). You can’t subtract work study from the bill … you have to find a job & earn as you go.</p>
<p>So here is how to figure things out: Add up just the tuition, fees, room, and board costs. Subtract just the $32,500 in free money & student loans. Subtract the latter from the former. THIS amount is what your parents will have to come up with to pay the school.</p>
<p>Don’t forget that you will still need to pay for book & expenses. The work study job can help you with this (although you will need to have enough money to cover your books first semester, as you would not have earned a paycheck yet).</p>