<p>Hello fellow CCs,
I wanted to gather some thoughts on my situation. I'm in a junior in college working towards a marketing degree. My first two years my financial aid covered all my college costs. This year my parents allegedly made too much and the government took away my Pell Grant. It was with great agony that I took out a loan of $2,500 to pay for the remaining balance this semester. After looking at my aid next semster it looks like I'll have to do it again next semester. I've applied for a few scholarships, but everyone knows those aren't gaurenteed. I do not qualify for any other scholarships besides the ones I've already applied for, and my school has no other options available for me. My parents have no money to spare and I make milk change at my current part time job. I don't want to take out any more loans but I don't seem to have a lot of options. This is really stressing me out and making me really depressed. Any suggestions on how to tackle my situation?</p>
<p>$20,000 to $28,000 in stafford loans in exchange for an undergraduate degree is manageable.</p>
<p>I’d be inclined to agree but considering the horror stories I’ve read regarding the questionable practices of some loan servicers, I really have my doubts.</p>
<p>Why would such a small amount stress you out? You should look at the average debt a student graduates with. If your parents choose not to provide the balance (remember they had 20 years to save) then why would you think you are entitled to a debt free education. Honestly your situation is not that bad.</p>
<p>If you took out Direct/Stafford loans, you shouldn’t have any problem with unscrupulous loan providers. The stories you are reading to are probably related to private student loans.</p>
<p>Many students take out some loans to help with their education. My daughter has around $20k and the payments are around $200 a month. Manageable.</p>
<p>Your loan amount is very small. Remember you can begin to pay them back as you attend school. Also check to see if your school has a payment plan. </p>
<p>The loan horror stories you often hear are people who went to law school and medical school plus had debt from their undergraduate degree.</p>
<p>OCM 2014: You do not seem to understand what I am saying. I am not saying that the $2,500 I have borrowed is stressing me out, but rather the fact that I will have to continue to borrow. I don’t want to have to go down the road of constantly borrowing to pay for textbooks and tuition. I also do not appreciate your tone. Who said anything about me feeling entitled? I do think think I am entitled to anything, although I would prefer to pay for my education and graduate without any more debt that I have already taken on. I asked for advice in regards to this goal. If you have no advice, than just say so but do not accuse me of being entitled.</p>
<p>As for everyone else, thank you so much for trying to reassure me, but honestly any type of debt just really unsettles. I’ve seen the damage that uncontrollable debt can do and I really do not want to go down that road. For me debt equals death. Perhaps I just need to change my attitude? In any case, I feel I am just gearing myself up for failure.</p>
<p>Well, you are a junior. If you are borrowing just $5000 this year and possibly the same next year, that is $10,000. Not too bad really. The payments will be about $100 a month which should be quite manageable.</p>
<p>It is good that you are thinking about this and are aware that uncontrolled debt is a bad thing. Don’t be afraid of reasonable amount of debt for an education that leads to good job opportunities, but do keep that attitude about excessive debt.</p>
<p>Sorry if truth equals tone. When you find a free ride in life then you will have no worries …car loan mortgage etc. I did understand you meant every semester and again I say its a small amount if your already a junior and got 2 free years.</p>
<p>What are your options other than taking on this kind of debt? Can you find a part-time job where you can make enough money to cover this part of your educational expenses? Have you considered your career options if you were to stop studying full-time, and instead work full-time and study part-time paying as you go? What about not studying at all for a couple of years, building up your savings, and then returning to college with everything covered?</p>
<p>You are very fortunate that your loans for four years of college are only going to be $10,000. Agreed with others…can a job during school plus a summer job reduce those a little…if you are that concerned?</p>
<p>What option do you have? If you have $10,000 in Direct Loans, your payments will be roughly $100 which should be manageable.</p>
<p>I commend you for being concerned about debt…but don’t be penny wise and pound foolish. It sounds like you need these loans to complete your undergraduate education…which really is an investment in your future. Consider the loans for you education as an investment towards your future earnings. I mean…really…your college degree will be worth much more in earnings over your lifetime than $10,000.</p>
<p>OCM2014: Have fun playing on your high horse. I have nothing else to say to you.</p>
<p>Happymomof1: I have considered all these avenues, but they all result to be a quagmire. As I mentioned before, I make milk change at my current job. There are some lucrative part time jobs in my area but they all require skills that I do not have or require time that, as a full time student, I cannot give. The full time employee part time student plan appeals to me, but that would mean losing all of my merit scholarships which pay for the majority of my tuition as it is. (You have to have at least 15 credit hours every semester to get financial aid at my school.) I think that the full time work and save strategy would be the best route, but again that would mean losing all my merit scholarships. To top it off, my current job is contingent on being a full time student so as soon as I drop out my employer will show me the door. Many options but not very good consequences.</p>
<p>By the way, where are you guys getting the $100 minimum payment?</p>
<p>othersidedixie, what about working during the summer? Or during college vacations? My high-school-senior daughter babysits and she makes quite a bit of money per hour that way.</p>
<p>Student loans are now administered directly between you, the college, and the federal government.</p>
<p>The payments for Stafford loans are based on the amount of the loan with the minimum being $50 a month. They are paid off over 10 years. There is a loan calculator here that will show you how to calculate payments for different amounts of loans.
[FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>
<p>(FWIW, just ignore or block anyone who just seem comes here to be rude or insulting instead of helpful. Engaging people like that rarely gets you anywhere).</p>
<p><a href=“http://talk.collegeconfidential.com/profile.php?do=ignorelist[/url]”>http://talk.collegeconfidential.com/profile.php?do=ignorelist</a></p>
<p>To all the moms that commented and everyone else thank you for your help. The fact that I took out a loan was really bumming me out, but now hearing from you guys has made me realize its really not that bad in the grand scheme of things. I’ll look into trying to double up on work during the upcoming Christmas break.</p>
<p>You are right that giving up the merit funds isn’t a good way to go. You likely won’t get a chance to get that advantage again. All in all, you are in an enviable position. Your loan needs are in the manageable and reasonable category. People here caution about excessive debt all the time. You just don’t fall into the excessive category or even the moderate category, it is very low even total through sr year.</p>
<p>What else do you expect here? What can we do for you?</p>
<p>It’s a great time to pick up a weekend seasonal job. And keep an eye on craigslist in the Jobs-Etc and the Gigs categories. One-off or short term things pop up all the time. You sound motivated so check it daily.</p>
<p>I’m sorry that you have to take out a loan to get through college. I’m sorry for any of the students who have to do so. It is an issue, a financial one and it will put pressure on you when you finish school in terms of financial obligations You are wise to be be wary of this course. </p>
<p>What you and anyone taking out loans for ANYTHING, and that includes mortgages, car loans, any kind of loans,should do is weigh the advantages and disadvantages, all of the alternatives and pick the best one. I remember when we took out our first car loan vs paying cash for a junker car which we could afford without a loan, and going through the pluses and minuses. So one should do with each loan one considers. Only you know your particular situation, and can go through all of he alternatives you have.</p>
<p>One hot tip for reducing the stress of loans – try to see if you can pay off the interest as it accumulates on any loans you take out. This keeps the cost of the loan from amorotizing over the 2 years you are in school so it reduces the amount you hae to pay. You mention you have a part-time job so that can be a source of additional money. Of course taking out loans is always a mistake but in your case it would be an even bigger mistake to forego to the loan and drop out because then that means you just wasted two years of tuition!! Debt is bad but it’s not the end of the world and it is gratificing that you are mature enough to weight your options accurately and make a solid pragmatic choice!!</p>
<p>My brother felt same way but he will graduate with about 27k of loans. I think your ok with such a manageable number. Isn’t the school aid office helping you with the numbers?</p>