Is USC Worth 30k in debt?

Paying for College
1

So yes, with the days ticking by, I still would like some opinions on whether choosing University of Southern California/Marshall (30k in debt upon graduation) or Arizona State University Honors College (NO DEBT upon graduation). I am doing business, and my goal career is marketing manager for Apple or Google, which I know are tough jobs to get for anybody and take a long and vibrant career.

The fact is I just don’t want to take on the debt of 30k. My family only earns 28k per year, and my older brother (separate from 28k household) will be paying a major chunk of the out-of-pocket money, which for USC is roughly 8k per year out of pocket (13k per year after all grant/aid) . Essentially, that means my brother will be paying 5k per year AND will offer an extra 20k to pay off the 30k debt upon graduation, however the latter 20k will be a “loan” in itself, but with no interest and I can pay if off to him anytime in my life. Brother makes 60k per year in expensive urban area.

This seems to be too much. I can’t avoid relying on my brother for a school as expensive as USC (mom can only pay 3k AT MOST) because he is, in the end, my brother and not my parents. ASU will only be 6k per year (without loans), and once I move off campus that could easily go down to just 3k.

I guess the biggest thing is “regret”. Is USC really that great of a school when stacked against ASU? Can’t I just try the absolute hardest and see where I go, no matter the school? I know Marshall is great, but hey guys ASU ain’t that bad. I just want to get the best start to my career, but can loans hinder that? Can I still get in to a great MBA school from ASU? Because, truthfully, undergrad is only worth so much these days.

And no, PLEASE DON’T SAY " gah gah 25k in loans is the common reality now" yes I know that may be a common reality, but just because everyone is doing something does not means its for me in the long run.

And yes I have asked for an appeal of my USC fa, but I got denied.

Thank you so much for input!

2

Are you saying $30k at graduation? Not a huge deal. USC has great networking

3

IMO, $30k is a chunk of money for a family with less than that in annual income.

I’d take Barrett’s with no debt, and work your butt off for great grades.

4

You’re asking if we think USC is worth $30k more than Barrett? Heck no!!!

You’re absolutely correct that, with very few exceptions (such as students whose goal is Wall Street), it doesn’t make a darn bit of difference where you attend college. College is absolutely about what YOU make of it . . . and an ambitious student at ASU can absolutely outperform a lazy student at USC! And any difference in “atmosphere” between the two schools will be more than offset by the fact that you’re in the Honors College, where you’re likely to be surrounded by students just as ambitious as you are. Seek out the best prof’s at ASU and the best opportunities, and you can achieve anything you want.

There’s absolutely no reason to burden yourself with debt when you’ve got an affordable college that you are happy to attend . . . and, from the sounds of it, you are happy about Barrett, aren’t you?

5

Let’s face the facts, though: there will be more Silicon Valley recruiters at Marshall than ASU.

6

If these are the Stafford loans, it should be okay. If they’re PLUS or private, no way.

7

You will be responsible for $30k in federal loans plus $20k to repay your brother? That’s $50k. Is the $20k from your brother absolutely assured? What if he loses his job or runs into his own financial difficulties?

You can solidly plan on borrowing the fed max ($30k, and that’s a good deal for USC), and it sounds like you can count on the $3k per year contribution from your mom, but I’m worried about that additional $5k per year that you need from your brother, who is only earning $60k himself in an expensive urban area.

At the very least, see if you can work in a small job during the year and perhaps a good paying job in the summers to help out with the brother’s contribution.

8

You can get to the companies you want from ASU. Get great grades. And hustle. Network, and create your own internships, with high performing business people. Start making contacts now. Have a great internship every summer. Ask the business school for help. Ask for ASU alumni contacts at your target companies. Build your resume starting now. If you are uncomfortable with the debt don’t do it. Be honest with your contacts about your experience. Many people want to help smart ambitious people like you.

9

@prospect1

I think he mean that, after graduation, his brother will pay $20k of his loans but expects OP to pay that back.

Sooo instead of owing $30k to government, OP will owe:
$10k to government
$20k to brother (payable on OP’s terms)

He’s also paying $5k per year as a gift/no repayment during the school year.

10

So? You mean the OP may actually have to put a little bit of effort into attracting their attention? Sheesh!

Just because recruiters target certain schools doesn’t mean their hiring is limited to those schools. A stand-out student at ASU can do just as well, in the long run, as a USC grad. Alumni reunions may not be as interesting as at USC . . . but with all the other tools available these days for networking, I’m not sure that makes any difference at all.

11

Why does your brother have to pay out of pocket money? Why can’t you earn that money yourself during the summer and doing WS? Second, I would go with ASU and graduate debt free. As others have said, you can hustle and make your own connections.

12

^ He could…although I don’t see the issue if the brother (who has no dependents) wants to help. Yes, it would be good for the OP to work to learn valuable experience & have pocket money. But not having to stress/scrape to pay the bill is something else…

Of course, a debt free education is a great opportunity. Going to ASU would free up a lot of cash after graduation. However, a USC education could be good for the OP as well. It’s a pretty doable package, with a manageable amount of debt. Maybe I’m a little biased, but it’s something to consider.

13

I missed that the OP will be in Barrett.

I wouldn’t trust that the bro will pay off $20k upon graduation, even if it’s a loan. He could be married at that point and his wife may nix that, or they may need to buy a home or have a baby or something.

Debt free is great, but the USC debt isn’t crazy, so if he’s visited both and really likes USC…

14

@MaroonDaddy suggested “creating your own internships.” Brilliant idea! I know of one elite college that assists its students to be placed in summer “mentorships” with high-power business people (in a variety of fields) . . . but there’s absolutely no reason an industrious student could not create such a mentorship on their own. Reach out to people you’d be interested in interning with, use ASU alumni contacts, get glowing recommendations from Barrett staff and prof’s . . . and create your own opportunities!

I was really impressed by that one college’s mentorship program, and all the effort made by the college to find good placements for their students . . . . but the student who can create such a opportunity for him or herself is way ahead of the students who have it all done for them.

15

While I agree that 30K of total debt could be reasonable, my concern is with the overall plan. The plan is built on 5K/year support from his brother. Is the brother’s job stable enough to guarantee that? Does the brother have a good emergency fund? If that 5k disappears what are his options? Does he have someone that can co-sign a loan at that point? Second is the fact that he wants to have the option for a MBA program. From what I understand, those programs are 100% funded by the student or his employer. So there is a potential for a large amount of debt in the future.

This seems to be a plan that has little room for error. One financial setback could easily derail the whole plan. In that happens would going to ASU if this happens a possibility? Would the FA still be there?

If he is serious (as serious as a 18 year old can be) about graduate school then I would lean towards ASU. Not having debt can also open doors. He can consider that low paying but great experience internship instead of chasing the money to keep his head above water. Maybe, he could take a extra semester if needed.

16

If you had the money in the bank, I would say pay the extra for USC. However, the OP does not have the money in the bank and has rely on the Bank of Bro. Since bro doesn’t make the much and can get laid off at any time, take the free or close to free tuition at Barrett and don’t look back. At least the OP can be confident of graduating, while at USC he/she will be worrying every year that the brother will make the payment, and that job/spouse/car won’t get in the way.