Let me preface this by saying that I have to pay for the vast majority of my college costs myself with the help of financial aid/private loans. Earlier this year I committed to a college in my state since it was the cheapest college I could live on campus at (Miami University Ohio). However, even being the cheapest, I still need to pay roughly 14k per year through private loans and money I make over the summer (and that’s after the federal loan). Today, my dad and I sat down to sign up for private loans and seeing 14000 dollars per year with interest scares me. I’m majoring in computer science and everyone tells me I’ll make enough that 60k in student debt is manageable but even so I know it’s gonna suck. My parents also offered to let me live at home rent free to pay off the loans but that’d suck since it would just be a year of my life where I’d be stagnant, working solely to pay off my debts. At the same time, I’m still getting emailed by another college (Kent State, 20 minute drive away) to confirm my enrollment. If I were to commute to this college I would save sooooo much money, it’d cost me about only $6000 per year to commute and with the money I make during the summer and my parent’s contribution I’d be down to only $1000 (or less) a year and I have enough in my 529 to cover these leftover costs. I don’t know what to do, I’m so conflicted. There is no right decision. If I commute I sacrifice so much fun and the majority of the “college experience” but if I commute I get to save a insane amount of money and also get to enjoy the comfort of home. Plus, I’d be really late to commit my enrollment and probably get last picks in class registration. Any advice? What would you do if you were in my shoes? I really appreciate the advice I get on here, thanks.
It’s great you are thinking about money - because yes, it’s a lot. I hate that you’d lose your college experience - it’s important and you miss it all living at home. But $60K is a lot.
Without scholarships, Kent State is cheaper - can you go and live there - then you still get that experience?
It’s a personal call - yes, you are taking too much debt but the experience of college is awesome. It’s a total personal decision.
Sure you could service $60k in debt, but not without significantly impacting other things. You’ll be looking at roughly $640/mo. You pay that with post tax dollars so roughly $1000 of your monthly earnings will go to debt service. How will that impact your ability to max your 401k starting your first year? That’s the best way to build long term wealth and going in debt will likely delay that. Tough choice. I’d choose the low debt load myself.
Are you saying you may need $60k in private loans? And then you’d still have your own federal loans in addition?
What if your parents can’t get private loans next year? You’d have to pause your education or transfer.
Ask Kent State about getting the classes you prefer.
Perhaps you could start at Kent State and transfer later as finances may improve.
Have seen this resource comparing federal and private loans?
https://studentaid.gov/understand-aid/types/loans/federal-vs-private
https://studentaid.gov/sites/default/files/federal-loan-programs.pdf
I’m a little confused. Wouldm’t you have a parental contribution and summer earnings if you went to Miami U. of Ohio? What is the actual price difference? $15k versus $8k?
I don’t know if a response is possible without a direct comparison. Maybe others understand your figures.
Is the savings mainly from living at home? So that Kent State with a residential experience is similar in cost to Miami U?
I guess you could either 1) commute to Miami U. or 2) start off commuting to Kent State and consider a transfer later. If more students commute to Kent State and most students at Miami are residential, there might be social consequences to think about.
I do agree that for a CS major, paying off $60k is doable but that doesn’t seem to include the federal loans.
The cost of the two are almost exactly the same if I were to live on campus. So, yes, the savings are completely from living at home. And unfortunately I cannot commute to Miami since it is 4 hours away. Otherwise I would since I’d only have to pay 3k per year at Miami commuting. And, yes, I still have parental contribution and summer earnings at Miami, but that still only would bring be down to 14k per year in total loans (federal and private, living on campus). Miami costs ~19k per year to live on campus and kent would cost ~6k a year to commute, maybe 7-8k including gas, but my parents would probably be willing to pay for gas.
Here’s the thing with taking the loans. You really can’t take loans out yourself (other than the federal ones) so your parents need to co-sign them. Depending on their financial situation, and the types of loans they are taking, it is possible they may not qualify for additional loans by the time you need to take years 3 and 4. That leaves you with loans for the first years, no degree, and no easy path to make the money to pay it back. We have seen that same scenario play out both on CC and with people we know in real life.
Of course there is a correct decision. You go to Kent State.
There are a small collection of universities worth incurring substantial debt (Harvard, Stanford, etc.) and Miami of Ohio is not one of those schools.
You keep talking about how you will sacrifice the “college experience.” Well, you are also sacrificing owning a Ferrari and a private yacht. You can’t afford any of these things, including the “college experience” at Miami of Ohio.
Here is the good news…are you ready…you will have a blast at Kent State. You will meet great people, go to parties, date and have a wonderful experience. Don’t nuke your future for experiences you can’t afford that won’t be any better than the ones at Kent State.
Do most students at Kent State commute?
In cost difference, also consider food and gas.
I am on the fence with this one for a CS major. My nephew went to Miami U. of Ohio and graduated with a really good job.
But it’s really $87k in debt….the $27k in Federal Direct Student loans plus the $60Kish in loans that her parents will have to take out (or co-sign). Unfortunately I agree with those who say that is too much, even for a CS major. Payments upon graduation will likely be $900/month in loan payments every month for ten years…that is high enough to impact one’s life certainly for that decade, but possibly longer (inability to save for a down payment on a house/condo, etc).
I committed to a college in my state since it was the cheapest college I could live on campus at (Miami University Ohio). However, even being the cheapest, I still need to pay roughly 14k per year through private loans… (and that’s after the federal loan).
Today, my dad and I sat down to sign up for private loans and seeing 14000 dollars per year with interest scares me. I’m majoring in computer science and everyone tells me I’ll make enough that 60k in student debt is manageable
A $14k private loan per year is ~$60k. Since that’s in addition to the ~$27k federal loan the total debt would be closer to $90k. Who’s telling you that $90,000 (plus interest) is manageable? If they’re not repaying the loan for you they shouldn’t be encouraging you to take loans.
The payments on that kind of debt will probably be ~$1000/month. If your parents had that kind of money they wouldn’t be cosigning $14,000/year of loans for you. You need to think about how that debt would impact your family. Do you have siblings whose college costs have to be considered? When do your parents plan to retire? If you can’t make the payments how will they cover them? As cosigners that’s their responsibility. That’s an awful lot to ask of your parents just so you can live on campus.
If you don’t like computer science, you don’t do well and have to change your major (which happens), or your parents are denied loans after a couple of years you’ll have a lot of debt without a cs degree. Even if you do well and graduate with a cs degree, a residential college experience isn’t worth that kind of debt.
My parents also offered to let me live at home rent free to pay off the loans but that’d suck since it would just be a year of my life where I’d be stagnant, working solely to pay off my debts.
What happens if the job you get isn’t near your parents’ home and/or it takes you a few months to find a job? How would you pay for living expenses and the loan? If you commute and graduate with no debt the money you’d be using to repay loans could be saved or invested.
Ultimately, you aren’t borrowing $90,000 for a cs degree. You’re asking your parents to borrow it so you can have a residential college experience. I don’t think Miami University Ohio is affordable for your family. I’d contact Kent State and ask if you can still enroll there.
Kent is a fine school. You won’t be the only student who commutes there to save money (I personally know three others right now).
If you have to co-sign private loans to pay for school, you can’t afford it. That’s far too much debt for a bachelors degree. If you can afford Kent State and graduate with the $27k federal loan limit, then that’s where you should be. If you have to do private loans for that, then maybe you should start at community college.
Here’s a reality check about “college experience.” The students having all the fun and going to parties are the ones on academic probation. It’s nothing more than a distraction. CS is a difficult degree, so you have to make a choice. Do you want a degree CS or a “college experience?”
My kids went to all of the parties and kept their grades up, my daughter is a rising senior at the university Delaware with a 3.9, my oldest graduated with a 3.9 and the next 3.4 (he’s never been the most organized person with his ADHD). My kids saved money by moving off campus and working part time, cooking instead of eating out (those dining plans are so expensive). I’m not saying the OP shouldn’t commute, but there really is a big difference in the experiences of commuting vs. being on campus.
Please stop telling young posters looking for advice that only those on academic probation have the full college experience. It doesn’t help at all because it’s just false. Most students enjoy the residential college experience, including fun parties, sports, and other social events, and do just fine academically. The truth is just that the full college experience can be had by commuters as well and isn’t worth almost $90k in debt. No reason to make stuff up to make the OP feel better about making the smart choice.
$60k isn’t huge. Your gross pay will be at least that with a Comp Science degree from Miami U.
Or you could save for grad school and move away for that. However you don’t typically need grad school in CS. At least your parents are willing to co-sign and you have a good enough relationship to live at home and commute. I assume quite a few from your HS will be commuting to KSU.
The amount is actually around $90k. And what if the OP washes out of computer science as a significant percentage of students do each year at every school? Bad decision.
If you’re the person I’m thinking of your kids have a financial backstop if something goes wrong. Are any of your children graduating with ~$100,000 in debt? Debt is a stressor. Debt that parents have to repay if you don’t (when they didn’t have the money to pay in the first place) is a stressor. This student’s situation is not the same as upper income families who can afford to pay for college without cosigning enormous amounts of debt.
I agree and it appears the best option for the OP is to commute. I also believe that living away at college is very different than commuting based on what I’ve heard from those who commuted and my kids with friends who commuted. My oldest was a commuter for her last semester, she was not a fan. If the OP “only” expected to need to borrow $60,000, I’d suggest looking into off campus expenses, because unless in an expensive city they can be significantly less that R/B.