<p>Are student loans really as horrible and scary as they are made out to be? I'm working hard to get scholarships (I'm at a community college, 1st year), and my parents don't really have any money to pay for college. It just seems that, learning more and more about student loans, they aren't as scary as they are made out to be, since you get six months before you start paying them back, pay them back over the course of years, typically month by month, depending on the size of your monthly paycheck, and you can defer them for a short time if you can't pay that monthly bill. I was just wondering, because I've always been told about how horrible they are. I'm going to a private, liberal arts college after I get my AA, and it costs after $58k per year. I know that it is a lot, but I am working hard for scholarships and grants, which will bring down the amount I will have to take out in loans. </p>
<p>I'm just wondering if I'm on the right track on thinking about student loans, or if they really are as terrible as people have always made them out to be.</p>
<p>First off…if your private college costs $58,000 a year, YOU will not be able to secure loans in that amount without a cosigner. At many private colleges, aid for transfer students is less than for incoming freshmen. Does the four year school guarantee to meet full need for all transfer students? </p>
<p>Remember also, the school computes your need.</p>
<p>I’m not trying to be a Debbie Downer here, but I think you need to be realistic about what you can afford for those years after community college. The Direct Loan, which is the ONLY one you are guaranteed to receive, is $7500 for junior year, and $7500 for senior year. That leaves you with $50,000 plus to fund for that private school.</p>
<p>I would suggest that you look at affordable options as well. In addition, talk to the transfer advisor at your CC to find out if there are any colleges where you might be eligible for aid that would make the school affordable.</p>
<p>It’s not the borrowing part that is so terrible at all. It’s paying them back. It’ll be a blight on your credit report and worse for your budget. It’s tough getting a decent paying job and then to have to be including loan repayments for something that is a done deal really is nauseating.</p>
<p>Do not rely on scholarships. They are very competitive and very hard to get. The odds of you getting enough scholarships to make that school affordable is very, very slim. Also, student loans are not always bad, if you need $20k or so. That’s pretty manageable. </p>
<p>Even if the school is generous and gives you half of the tuition in grants (which is not likely), you’re still looking at about $30k per year. That’s too much money. You will not be able to take out that much in loans, and if your parents have no money, they probably will not be able to cosign the loans for you. That leaves you with pretty limited options.</p>
<p>I think you need to be more realistic here. That much debt IS bad. You’re not guaranteed a job after college, and you certainly are not guaranteed a high paying job. That much debt when you are just starting out your adult life is very burdensome and will not be as easy to pay off as you are imagining it will. Sure you could defer for a while if you can’t make the payments, but you can’t do that forever and interest will still accrue. And those loan companies are sharks. They’ll come after you whether you can afford it or not. They don’t care that you can’t pay, they want their money. It could really hurt your credit, which would make it much harder to secure loans to buy a house or car. You’re oversimplifying this. The reality is, is you probably won’t be able to afford the payments on loans that big, and it will affect a big part of your future. </p>
<p>Do the smart thing and find a cheaper school where you will be able to graduate with very little debt. That way when you start your career you’ll be able to save up money for a car, a house, or whatever else it is you want to save for… having $60k in debt right off the bat will really set you behind and it just isn’t worth it. I know that’s not what you wanted to hear, but you have to be smart and taking that much out in loans (if you even CAN) is not smart.</p>
<p>Most CC have articulation agreements with public colleges in the state that make it possible to complete the second two years of a four year degree at the public four year college after completing an associates degree from a CC.</p>
<p>This will be your best bet for completing your degree. </p>
<p>Another option is to look for private four year schools that will accept most of your transfer credits from the CC, allow you to graduate in two more years after earning you associates degree from the CC, and will offer enough aid to make the cost of attendance for you to complete your degree the same or less than it would be to complete your degree at a public four year school in your state.</p>
<p>You will not be able to borrow the amount of money you mention without a qualified co-signer, anyway.</p>
<p>Have you met with the transfer counselor at your CC?</p>
<p>You need to be very cautious with student loans. Are you taking out loans for CC or was this covered by grants or other aid? </p>
<p>Your new school is $58,000. Remember you are limited to the following loan amounts:
Freshman Year - $5500
Sophomore Year - $6500
Junior and Senior - $7500</p>
<p>Any other loans would have to be taken by your parents (parent plus loans) or via a private loan which can get you into trouble. </p>
<p>The best thing to do is analyze your career goals and determine the best college for you. A cheaper school may get you to the same place a more expensive school may get you.</p>