Not sure what to do from here, need guidance/advice

<p>Im at the point where I need to decide on a college. Im torn between two colleges:</p>

<p>I have a first choice but it is very expensive. I calculate that at the end I would be left 21,000 in debt after just one year. That is a LOT of money. But when I get there I think I would be able to get a very high GPA and get some more scholarships, lessening the money owed. Also, I think I filled my FAFSA a little late and next year if I got it in very early I would get more aid.</p>

<p>Secondly, the problem is that what I want to major in isn't exactly a huge money maker (English). But it is what I love. Going into a money-making field like Economics or Chemistry would make me money, but at what price?</p>

<p>Also, this college is great, I visited it, it's definitely the best school that I was accepted to. The class sizes are small, there's lots of girls, lots of room for connecting with professors, the campus is beautiful, the food is good from what I've heard, and I think I would enjoy my time there. It has many clubs I would be involved in and in general sounds fun.</p>

<p>The other college I am considering is a school that is much much cheaper and would basically be free for me, but it is worse. the campus looks bland, the class sizes are larger, not many students I feel I'd connect with there. It has a very low selectivity rating so I'm afraid I would be in highschool part deux.</p>

<p>But how CAN/will I be able to realistically pay off that debt? Im pretty sure I will have a high GPA after the first year, but what else can I do...? I've already signed up for some private scholarships and hope something comes of that. Anyone ever been down this road?</p>

<p>Nothing in between? Free or $80K in debt? Quite an extreme.</p>

<p>First of all, if you are a typical high school student, graduating and planning on going to college this fall, you are not going to be able to take out all of those loans yourself, unless the college itself is offering them to you personally. Your parents are going to have to cosign at best, and it probably would be better if they just take out the loans themselves since they’ll be just as much on the hook if they cosign, in terms of them being on their credit report and being responsible for them. At least that way, only they, not you too, will be stuck with the loans until they are paid. Why put both of you on the line that way? The terms are usually more flexible with PLUS, as well. If you want to have a separate contract promising to pay them back, go right on ahead.</p>

<p>So it really comes down as to whether or not your parents are in the financial position to take on this sort of debt and if they are willing to do so, not you. Your parents are instrumental in the college decision, just as they are for high school choices, as they are the ones who have to pay for the choice. </p>

<p>I don’t think most young college grads can make reasonable dents in loans of that amount by themselves. They end up deferring them so they get even more bloated and cumbersome, (I mean the loans here), and they can be a real thorn in the side, monkey on the back, you name the cliche. </p>

<p>My kids are having a hard time making ends meet even with zero loans and steady employment after college. They also live near enough to us (parents) that we can help out here and there and they are in an area with plenty of job opportunities. It’s still tough. I don’ t know how a kid who owes $80K+ can even take a job opportunity that is nice but not really lucrative and strike out on his own. My friends’ DD is working part time as a coffee house waitress and her parents have been hit up for their co signing her $90K in loans. She has to live with her parents, a bitter pill after 4 years of independence, and getting anything, like a car, her own place is out of the question. She is a philosophy major, but that is not so much the point, as only certain career specific majors lead to high paying jobs for kids right out of college. Really, in her case a year or so at community college, taking some job training certificate route would probably the best thing to do to become employable, but no way can she or her parents borrow any more money and they are bled out by the loan repayments as well. You can see what can happen when you take out too many loans and don’t have a good chance of a high paying job. It all comes back to the parents.</p>

<p>I don’t think loans are always a bad thing. If your parents are willing and able, loans can be a great aid/tool for getting you what you want in terms of college, and what they want for you. But if you are endangering their financial footing in pushing them to do this, shame on you. It’s hard enough to get through with one’s finances in decent shape. And we parents so want to give you kids everything. Many times we can do so, until it comes to the big ticket of college costs. A lot of times, with kids from families who are doing all right, and kids who are doing well too, it’s not hard to give you what you want. Then comes the $60K a year college cost,and how to meet that cost. A whole other story, financially.</p>

<p>It is doubtful that you will get more money next year. Most schools give their best package to freshmen and they try to keep the packages for the four years for those kids. Once they have you, there’s no more courting necessary. Is this school a PROFILE school, and do they guarantee to meet need? As for merit money, I don’t see much for upperclassmen. So what you get as a freshman is usually your best offer.</p>

<p>What does your family advise? You can not borrow more than $5500 in Stafford loans on your own, so is your family going to co-sign for you? That could hurt their credit score. You may not be able to attend the more expensive school simply because you don’t have the funds, period, never mind the debt you would have to incur. Many students can not afford their expensive dream schools, just like many adults don’t get to follow the life they dream of when they are young due to the reality of having to make a living, pay bills, etc. Welcome to life. You will do fine at your second school, which will be affordable, and there are plenty of other students there who are bright, maybe even smarter than you. Do they have an honors program? If so, were you invited to join? If you are going to be an English major, it really isn’t important to have some big name school on your degree. If you choose wisely, you will be comfortable during college, maybe even get to study abroad because it will be more affordable, and that alone could add a lot of value to your educational experience at the more affordable school.</p>

<p>Hey, thanks for responding. I only applied to 4 colleges so, yeah, this is my current conundrum.</p>

<p>And my parents are in no position to take out any loan. My mother’s credit history, she tells me, is very bad and my father’s is probably much worse. He’s also unemployed but on disability. Also, the financial aid package this college gave me is a single ‘award’ that is renewable for four years…so I only stand to gain money after the first year, not lose. I also may go to graduate school. But then again, sometimes you may need to pay money to gain money…this college has connections, etc. that the other college couldn’t offer me.</p>

<p>Umm. Most awards are renewable each year for four years. It’s just that it is rare that student get more money after the first year, without a drastic change in circumstances, and even then only school guaranteeing to meet full need generally will step up the package. Does this school guarantee to meet full need? If it does not, it has likely given you its best package now. The costs will go up, and I am telling you, the availability of more money to upper classmen is meager at those schools that gap. If you truly believe that your late FAFSA was why you did not get more money, take a gap year and give it a try again as a freshman and get your stuff in early the next time. I don’t believe for a minute you will get more from this school next year. Highly unlikely.</p>

<p>So if your parents are not able to take out any loans or cosign, where do you think you are going to find anyone to lend you that kind of money? </p>

<p>You are fortunate to have a choice that is affordable. Take it, is my opinion.</p>

<ol>
<li>It is not that likely you will get more aid in future years.</li>
<li>$21,000 a year will have grown to more than $84,000 at the end of 4 years. Unless you are paying the interest each year while you are in school, the interest will be added to the loan (meaning it will be capitalized) and you will incur interest on the interest. At an interest rate of 8%, at the end of 4 years you will owe about $102,000.</li>
<li>The payments on $102,000 will be around $1,200 a month every month for 10 long years.</li>
<li>You will need a cosigner with a good credit rating to be able to borrow anything more than federal loan amounts ($5500 max for a freshman). </li>
<li>No school is worth this sort of debt. You have an affordable option. Go with it. In 4 years you will be very happy not to be paying $1,200 a month in loans.</li>
</ol>