More than likely, my lowest cost option will not involve loans… So I guess at a maximum the total loan would be 40k for UMN if I don’t get much else in outside scholarships, although summer earnings should be able to reduce this at least a little…
What do you mean by “more than likely”? Have your parents told you that they can fully cover whatever you haven’t already been guaranteed in merit aid? Or are you still counting on those outside scholarships you are waiting on?
Sit down with your parents. Run your aid packages here: http://www.finaid.org/calculators/awardletteradvanced.phtml
Don’t forget to account for the costs of books, transportation, etc.
I have some personal savings (all usable for school), and my parents have recently decided they can contribute a little. Other than that, I think scholarships will probably cover the rest (at my lowest cost school), or will leave me with very little gap. I will run the aid packages on the website you suggested happymomof1, thank you!
Sorry I should have said. Both loan terms are for 10 years. We plan on paying them off much sooner.
Both kids did major in engineering. Both made more than $40,000 in their 1st full year of employment. The oldest makes considerably more now 3 years out and just got a very nice bonus. ( which I told him to buy his gf a VERY nice ring).
I wanted to say to the op, I don’t know what you should do. I was pointing out that in our situation my kids needed to take out those loans so we could afford college. It worked out well for us and now they have good jobs.
But would I have wanted them to take out double that if they didn’t need to, probably not.
Only you can decide what to do. But it is nice for my kids to be able to buy a car if they want and be able to live and afford an apartment on their own. Even be able to take a vacation every now and then.
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e. Also, my parents should be able to co-sign the loans with no issues (I’ve already looked into this matter).
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You can’t possibly know this for two reasons…1) your parents haven’t yet formally applied. 2) you have no idea if they’ll qualify for later years because the previous year(s)’ debt will further worsen their credit rating.
You may have asked a few questions, such as: My parents have good credit, can they co-sign? That answer would NOT mean that your parents will get approved each and every year. Banks don’t just look at credit ratings…they look at INCOME…and you say that your parents are low income.