Reasonable amount of debt?

Paying for College
1

<p>Okay so I have a question for all the wise parents on this board.</p>

<p>Right now I am in a program to be a registered dietitian. I graduated with a degree in dietetics with no debt (thank you, mom and dad/being an RA) but to be a registered dietitian you need a year long accredited internship. Although my parents said they could help me pay, I decided it was time to cut the umbilical cord (wish I had this attitude many years prior when I was a snot nosed high school kid who was more interested in having a good time then studying and picked a more lucrative major) and filled out FAFSA for the program.</p>

<p>FAFSA gave me $10,500 so I was able to cover the $8,000 tuition last spring. It also covered the $1,093 tuition this summer. I submitted my FAFSA last January for the fall and am awaiting my award letter. The program will be over in December and I will be eligible to be a registered dietitian. Starting salaries are $35,000 to $40,000, and I am expecting to make $37,000 (pitiful but I am being realistic). For the fall tuition it should be around $6,000. I am expecting the same amount I received last spring (is that how it works?). I also have a $1,000 scholarship I can put towards tuition. I babysit on weekends and make about $450 a month, which covers my rent. Gas right now is $50 a week but a new rotation, much closer to me, starts next week so it should be maybe around $30 a week, and I spend about $30 on groceries (I love Aldis). I don’t go out and my hobbies I engage in are free (aka Code Academy and reading at the library).</p>

<p>When I am finished, I should have no more than $17,000 in federal loans. The payment calculator on the FAFSA website said my repayments should be around $200 a month. I should be able to make that on a salary of $37,000, right? When I calculated it out, it comes out to $2158 a month. So $700 living expenses, $200 for gas, $100 for food, $200 for my loan, $200 for retirement, $400 for car insurance, and maybe $50 for phone bill comes out to $300 extra a month. What other costs should I consider?</p>

<p>Yes, of course I am jealous of my friends who get to take vacations and buy new cars, but they picked majors with higher salaries than me. I understand that picking a low paying major was my decision and I reap what I sow. I am very honest with them about things I can/cannot afford, and because they are my friends, never pressure me or make me feel bad.</p>

<p>So, wise parents, do you think I am in an okay (maybe not ideal) situation? If not, what would your advice be?</p>

2

<p>I think you are a very wise young woman. I wish my kids planned things out like you are. I think you have a reasonable amount of debt for what you want to do.</p>

<p>One thing, FAFSA does not give you any money. It gives you an EFC which the school uses to give you aid. I am assuming that since you are in a masters or other program post BA/BS that the amount is for loans. i really don’t know how federal aid works outside of undergrad programs, so perhaps Kelsmom, Sybbie or the others here who are so versed can be specific on what you have.</p>

<p>Congratulations on your achievement. Heartfelt here.</p>

3

<p>Your situation is eminently workable. Keep your eyes on your long-range goals and that debt will be gone before you know it.</p>

<p>Congratulations!</p>

4

<p>You can make loan payments on that salary, but things will be tight for a while.</p>

<p>Where do you live? I think $100 food is a low estimate. $400 for car insurance is a very very high estimate. Your car insurance will probably cost you ~$150/month. Depending on your market, you will probably spend at least $200/month on food, and that’s if you grocery shop and cook at home for yourself. (I spend more, but I also live in NYC). You also left out health insurance payments.</p>

<p>However, I still think that if you live in a low or moderate cost of living area, you should be able to repay loans of $17,000 on a $37,000 salary.</p>

<p>Also, $37,000 is not a pitiful starting salary. It’s actually realistic and about average for a new college grad in a moderate cost of living area.</p>

5

<p>You can definetly make it on that salary which is a fair starting point. Just try not to take any deferments and keep paying it down.</p>