<p>I have a friend that is going to attend college paid entirely through outside student loans. The cost of attendance is like, 22,000 a year for 4 years.</p>
<p>I am kind of worried about him... his dad did not let him use a FAFSA because paying back debt would make him work harder (which is a good thing in his eyes) later in life or something...</p>
<p>Does anyone know how outside loans work especially with that kind of money? How much, and exactly over what period of time would he have to pay back after graduation with interest and whatnot?</p>
<p>I would appreciate any sort of estimate or rough figures, thanks a lot.</p>
<p>There were a couple of good links to calculators (that estimate how long it will take to pay back loans, at what monthly rate, etc.) posted on cc some time last winter, I think. Try searching the poster Carolyn, perhaps. If I can locate them I will return to this thread later with the information.</p>
<p>The information, by the way, is shocking. A heavy debt load in one's early 20s means postponing house purchase, car purchase, possibly starting a family, it narrows one's job choices, and you can kiss most travel goodbye for a long time.</p>
<p>Really, even without knowing your friend or his situation, I might recommend postponing college for a year while he saves money, rather than finance four years with interest accruing the whole time.</p>
<p>oh lol, I've heard a lot about parents not willing/able to help out their children, but actually wanting them to pay more than they could is crazy.</p>
<p>That is the most stupid thing I have ever heard of. If his Dad lets him file FAFSA he may (depending on the family financial situation) at least qualify for some federal loans which have better interest rates. Coming out of undergraduate school with $88,000 in debt is horrendous.</p>
<p>Your friend is making a mistake to take out so much in loans. The average amount of loans that people pay for their entire college education is about $20 k. To take out more than 4 times that would result in a staggering amount of debt that would reduce your friend's options in terms of jobs, graduate school, places to live, etc. </p>
<p>There must be better financial options including starting at a community college and then transfering.</p>