Here’s my situation: I can take on about $50,000 in loans at CMC, or I can take a full ride scholarship to UIC. I plan to major in economics (finance at the latter), and have a desired employment career path in the finance world, whether that be in investments (eg: hedge funds) or some form of banking or consulting. I also want to start an entrepreneurial venture, but will not disclose the idea on this forum.
I am asking for some anecdotal advice on paying student loans. While I do think these student loans can be worth the education they would buy at the first option, I am afraid of the sheer amount of money that this is. I would be putting myself through a lot more financial stress, and would completely expose myself to the mercy of the market and potential bubble in education and the student loan market (not to mention the current equity bubble that exists today). Simply put, taking the full ride at the state school would be much so much easier on so many levels, for both my family and I.
I do realize that I would have a great deal of freedom (both financially and postgrad opportunities) if I chose the full ride, but I am reluctant to turn down CMC because of the potential postgrad opportunities it can offer, as well as being a great school with a great campus.
How burdensome are student loans? Is it worth trying to live dirt cheap for a few years and pay them off in a fury? Or is it better to extend the payments over 10-15 years at a lower payment per month? I feel like the real world hit me with a brick; a couple months ago, I didn’t even know how students loans worked, much less if I would choose to take them on or not.
Simply put: is the debt worth it? I think I may have my answer already, but I’m really just looking for any useful insight, as I am very new to this entire college-finance process.
Thank you.
(P.S: I can probably lower the total debt by working and finding ways to reduce living expenses on campus)
That’s going to be a lot tougher if you are carrying a lot of debt.
Right. It’s good that you actually get the subject you want to major in.
UIC grads have opportunities and get jobs. In fact,you might have more opportunities at UIC because you are entering as someone already recognized to be a top student, probably have access to some extra perks because of the scholarship – and may be in an environment where it is more likely that you can excel to a degree to get recognition and the opportunities that come with it.
No. it’s not. Not at that level.
It’s not likely that CMC offers a +$50K value over UIC. If it were a $10K or $15K differential… the math might be very different.
In that case I’m not sure.
First, Illinois public universities are under tremendous stress due to the state’s finances. while uic is unlikely to close like has happened to others, it’s not stable and the student experience is being impacted. Second, look at the conditions for your full ride - Many students have discovered, too late, that these conditions make it almost impossible to keep the scholarship. Third, cmc really is in another class for economics /finance and will open doors uic won’t.
50k IS a LOT of debt but in your case it might be warranted.
However, if you got into cmc, don’t you have other, intermediate possibilities - not full ride but not so much debt ?
Your parents are going to take out the loans? You wrote this just 10 days ago: “After a rude short notice, my parents have refused to pay for my education. I would need to come up with about $10,000 a year of out of pocket costs, in addition to the provided loans that total about $9,000.”
Which university did you commit to?
It sounds like your parents want you to take the full ride, but since you want the expensive school with a net cost of ~$80k they expect you to pay for it through cosigned loans, is that right? So the total you’d have to borrow is the $27k federal student loan plus ~$53k in cosigned loans? That’s too much debt for undergrad. Can you take a gap year and find an affordable college that’s more stable than your current full ride option?
You’re posting mixed signals. Your parents are refusing to pay, so why would you count on them to co-sign loans all for 4 years? You run the risk of having $20k+ in loans and then suddenly your parents can’t/won’t borrow more…then you couldn’t afford ANY school to complete your degree.
Take the full ride for at least 2 years. Let your parents work on their situation. Then apply to transfer and see if you get the needed aid. BUT…do not cut ties with your current school until you have a KNOWN affordable school to transfer to.