<p>With a computer science degree, and getting a job as a computer programmer (I believe they make about $52k out of college), what is a manageable amount of debt from college? I'm estimating that I'll be $60k in debt after college if I go to USC, $35k if I go to UW-Madison.</p>
<p>Also, I'm a bit confused about how loans are paid back...</p>
<p>1) Are federal loans offered as part of financial aid packages only repayable after graduating?</p>
<p>2) For my unmet need (that I would have to take out my own loans for), does payback of these loans generally begin while you are still in school? If so, my debt after college could be somewhat less in both cases.</p>
<p>3) When covering unmet need, is it wise to split it between a parent PLUS loan, and my own loan? My parents seem reluctant to go in on a PLUS loan...they claim its a scam and the interest rate is too high...any thoughts on that?</p>
<p>Sorry if these are stupid questions, but I just want to confirm certain info.</p>
<p>Do your parents not want to take a PLUS loan, or not want to take any loan? If they are already contributing their EFC, and depending on their financial circumstances, it may be unwise for them and their future retirement to finance your education through loans for them (or were you planning to pay the PLUS loans?). I would certainly not try to push them into it. They likely already paid off their own student loans. However, if they are planning to take loans, I am not sure that there are better ones than PLUS loans available to parents. Federal student loans are the best loan deals, so if you qualify, they should be maxed out first. What type of loan were you thinking of taking? PLUS loans need to be repaid starting usually in about 6 months after you take them. The federal loans like stafford and perkins I believe are both subsidized with interest not accruing until after you graduate (you can check the terms of your loans with your school).</p>
<p>It depends on where and how you will live. A little research on the IRS web site should let you estimate how much of the $52k you will take home after taxes. (Also, there may be state and local taxes.) Then you can estimate what your rent, car and other expenses will be. (will you be sharing with friends? living at home? etc.) Add a few hundred dollars a month to that, since expenses are always higher than you anticipate. </p>
<p>What's left is the amount of money per month you have to make loan payments. Plug that number into an amortization calculator, and voila -- that's the most you can borrow.</p>
<p>Just be careful -- it's very easy to be overly optimistic when you budget.</p>
<p>60K in college loans is HUGE. It will take forever to pay that down - while you are also trying to feed yourself, pay rent, pay insurance (car, home, health, life), buy clothes, pay utilities, pay taxes, make a car note, and have a little fun now and then. You will be amazed at how easy it is to spend 52K (also be careful about these salary estimates - often they can be way off).</p>
<p>Basically, the average starting salary for a computer programmer with a bachelor's degree is $50,820 -- obviously, "average" means that many earn less. Outlooks for employment are not that great: "Programmers are at a much higher risk of having their jobs outsourced abroad than are workers involved in more complex and sophisticated information technology functions, such as software engineering, because computer programming has become an international language, requiring little localized or specialized knowledge. Additionally, the work of computer programmers can be routinized, once knowledge of a particular programming language is mastered."</p>
<p>The bottom line is that you could find yourself working for a lot less than you would expect. That UW-Madison debt is going to be a LOT more manageable.</p>
<p>Stafford loans come in two forms - subsidised and unsubsidised. Subsidised the government pays the interest till after you graduate (or quit) plus a grace period of 6 or 9 months. Then you, the student, start paying the interest and capital. Usubsidised you are responsible for the interest from day 1 (though it can be capitalized) but the Capital repayment does not start till after the grace period. Current interest rate is 6.8%. Perkins is a student loan for students with more need - also subsidised but interest rate is lower - 5%.</p>