<p>I'm technically not suppose to be here considering i'm only a senior in high school right now..oops :)</p>
<p>I'm concerned with a friend a mine that attends Brown University and possibly majoring in Applied Econ/Math and heading on to Wall Street/Investment/Trading etc. His grades are um...okay...a C maybe a B+ you could say...</p>
<p>He's taking out loans..lots and lots of them and will have to pay 120,000 for 4 years because his parents cosigned but still has to pay them back. He also wants to get an MBA (i heard MBAs are pretty useless now because everyone can get them...?) meaning an extra 50k/year.</p>
<p>He's in dream land thinking he will get into a top investment company with mediocre grades and get that 6 figure salary and pay off the debt in less than 10 years...</p>
<p>I also got accepted in Johns Hopkins but with very very little grant money and have to pay 45k/year. I told him what he thinks and he said to take out the loans and that risk like this is worth it (undecided right now, possibly some type of scienceish major). But instead, i've decided to go to the US Air Force Academy because it's an amazing experience.</p>
<p>Now, I just need some peoples POV of how the economy is right now especially with inflation in tuition and an increase in debt in housing, credit cards, cars, college etc. and the consequences of taking out so much loans for undergrad. My parents keep emphasizing how bad the economy is and what happens if I take out loans and how it will effect my life in the future. </p>
<p>Sorry if this is wordy, I'm very scared for my friend (once my boyfriend, but still best friends) I just want other peoples view in life right now especially parents....</p>
<p>Without knowing his family situation, it’s hard to say what is happening here. If the loans your friend took out are private ones, with parents cosigning, both are on the hook with the amounts on both his and his parent’s credit reports. Why he chose those loans instead of his parents taking out PLUS, may be because they were declined there, or the interest rate was better privately, or the parents felt that having the loan officially with their son’s name on it was the way to go. In the end it’ll be an issue between him and his parents regarding repayment. If he and his family can afford them, good for him. </p>
<p>I don’t like to count other people’s money because one never knows the full story and it’s really none of anyone’s business unless the person asks for an opinion. </p>
<p>As a rule, taking out large loans is a risky venture. Hopefully this works out for your friend. Good for you that you won’t have that monkey on your back.</p>
<p>Thank you for your response. I don’t have a clear view of how money and debt is an issue at this time because i’m too young to actually understand the real world right now…i’m just scared for him:/ i care a lot about him still. I still don’t get how loans really do effect the decisions of people because i haven’t been there yet…but it looks very very hard.</p>
<p>@OHMomof2 </p>
<p>Yes! USAFA is free in tuition, with a value of $440,000 including room&board…
plus…who wouldn’t want to join a skydiving club ;)</p>
<p>This is really his business and his family’s business, not yours. Now, he is doing something that most parents would advise against out here. But it is not your decision to make. He may even clean up his act, improve his grades, and pay off those loans with a good job after graduation (at least he is majoring in something where he may very well get a decent job). It doesn’t really matter what our opinions are (or even what your opinion is). He and his parents are the ones making this decision, and his parents will ultimately be stuck with the bill if he does not make good (since they co-signed the loans). This is an issue of boundaries – they have not asked your advice, and you have no legal relationship with this guy. I suggest you focus on making sure your own college experience is successful, and let him focus on his.</p>
<p>Since you are still best friends say your piece (once no more!). Suggest he goes to the career office and found out how realistic his expectations are - then back off. Yes, he’s probably going to regret this, but there’s really nothing you can do about it. Luckily it looks like the economy is slowly improving, so maybe he’ll get lucky, but I think you’ve made the wiser choice. (Especially since you think skydiving sounds like fun. It sounds terrifying to me!)</p>
<p>Salaries for an entry level investment banking analyst varies but generally it looks like $55,000 - $175,000 in NEW YORK. Your friend won’t have much money in his pocket after loans. BUT this is his business not your business. Hopefully since your friend wants to go into the banking/investment business he’s run some calculators of what his monthly loan payments are going to be after graduation. If he lands a 6-figure job instead of closer to $60,000 that doesn’t go far in NYC when he’s spending over a grand a month on loan payments. You can’t “worry” for him and as the saying goes you can lead a horse to water but you can’t make him drink" so I would frankly take care of yourself and not get to hung up on what your friend is doing.</p>
<p>I understand it is none of my business and I have no right to tell him what to do, but we are still the best of friends and since we were once together for a year and a half, i cannot just sit here and not care with what he does with his life, we are still as close as before. I am focusing on myself, lmao trust me I really am. I’ve decided to decline an acceptance to one of the top schools in the US and serve my country at the Air Force Academy (plus free tuition lol) I’m giving up freedom that my other friends will have in college, but this is my choice and i’m willing to accept it.</p>
<p>@mathmom
Thank you for that response, yes we are still best friends and we still have enormous feelings for each other, we took a break because he was leaving for college and wanted to focus on himself, I agreed and we’re both still happy with our friendship. and thank you! i’m very happy with my choice even though it’s a tough road but i’m willing to go through it. skydiving is a once in a lifetime chance! :D</p>
<p>Well, he and his parents are financially tied at the ankles to each other since both credit reports will get dinged if they both signef for the loans, so he will by default have his family to help him through this. I don’t see what you can say or do to change anyone’s minds who look at college expenses as an investment. I couldn’t with close friends of mine. They had to feel the pain before they got it.</p>
<p>The simple rule is to not take out loans that total more than the average first-year salary in your field.
Taking momofthreeboys figure of $55,000 - $175,000 in NEW YORK, the average across the U.S. is $90,000. So he is thinking of borrowing $30,000 too much. You can buy three cars for that.</p>
<p>hiiperson --Skydiving club, eh? Congratuations on your acceptance to USAF Academy. One of my son’s friends is there as a freshman. He is having an amazing experience that is very different from his friends going to regular universities in lots of fun ways, but from what I hear, it is not easy. Morale can get very low. They let a huge fraction of the class go after a few months because of a combination of budget cuts and students not making the grade. I think it is a wonderful opportunity, but it is not for the faint of heart.</p>
<p>He will need 3.5 GPA to get into IB unless he has connections. Starting salary for first year is 75K with 10-40K bonus. His monthly net pay would be around 4000. His monthly loan payment would be 1300+, rent= $1500 (if he shares). He will be left with 1200/mon for everything else. He will be tight. One thing to remember is that most analysts would need to leave after 2 years to go to another job or MBA. If he is a freshman now, he needs to bring his GPA up.</p>
<p>LBowie-Yes:) The skydiving club is what I’m hoping to join, but you need stellar grades, which will be one of my goals upon entering the academy. It’s hard, I actually went on a recruitment visit (got flown in for free, and recruited for fencing) and all the cadets there seemed very very normal and focus which i want in a college environment. It’s not for everyone, physically and mentally. First year is probably the breaking point for a lot of freshman, but i heard that going through it with your class creates an amazing bond you cannot get at a regular college/university. It’s tough and as a freshman you are not really a “person” there, more like a dog in training. Which builds character and confidence and I really want to lead people. I’ll be leaving June 27th, all the way from Long Island, NY. I think i made the right choice for declining my acceptance to Hopkins, even though it was my dream school, I can’t bake the cake and eat it too. :)</p>
<p>Thank you all, you all seem like wonderful parents and realize how the world is today. I appreciate the comments even though this is mostly not about me.</p>
<p>OP, your choice in colleges is completely irrelevant to what your friend does. So I am not sure why you are bringing that into this discussion. Maybe because you want us to think that YOU have made a “mature” decision compared to what your friend is doing? I hope you are successful in your chosen path, but that does not give you any right to interfere in his. I pick up a certain smugness toward your own decision. But he is an individual with his own right to pick his own path. I am not even sure it is the wrong path. Even if he does not go into investment banking, he may end up with a successful business career and get his loans paid off.</p>
<p>I have seen other situations where boyfriends/girlfriends interfere in the college decisions of their SO. And he is not even your SO any more (although maybe you wish it was still more, or you wouldn’t keep mentioning it). You are STILL stepping beyond the boundaries by trying to “fix” this problem. It is his and his family’s problem, and you are NOT his family as much as you seem to wish it is so. If this were my son (I do not have any sons, though, so really just imagining this), I would want you to butt out in no uncertain terms.</p>
<p>I am not interfering whatsoever. I’m letting him go on to his own path and so am I. And yes, I do have some bitterness towards him and I am trying to let go of that. I’m not here to give any parents an assumption of me really butting into his life, just to get other people’s perspectives. Yes, I do wish things were different but I can’t control him nor what he does in the future. I’m sorry for making it seem like I am some girl that noses in other people’s business if you think that, it was unintentional. </p>
<p>Also, I like how you are very upfront with this and not sugar coating anything… it gives me I guess a way of not having to worry or butt in anymore. criticism helps me. </p>
<p>But again, intparent I’m sorry for sounding nosey with his business. :/</p>
<p>Do not get sucked into going to a school on loans if you can help it. USAFA is a great experience with fantastic (hard) academics. I attended and that, with my 20+ years of service, have provided me with a very good living for my family.</p>
<p>Unless you are married or planning to marry - what anyone else’s financial limitations or gifts are cannot be your business. And I can only imagine a guy who is majoring in finance would like it even less. Hell, my husband barely tolerates it from me! :)</p>
<p>I agree with Intparent. It’s not your concern. While I might suggest he go to the financial aid office and see if he cant better his loans etc for the upcoming years, even that is crossing the line.</p>
<p>Congrats on the USAFA - but it is hardly free. You will dedicate four/five early earning years of post graduate employment to them, right? Not saying it’s a bad deal and I respect hugely the decision to serve. But make no mistake, it does include a payback.</p>
<p>Take away for me. Finances and money discussions are a good way to end a friendship. To be quite honest, this is really none of your business…even IF your friend asks you. The ins and outs of his family’s finances should be between your friend and his family. There could be some holes in the information your friend has, or is sharing.</p>
<p>My opinion…worry about your own finances and with regard to others (until you are married) MYOB.</p>
<p>The friend will do just fine in his life and career. Going into debt for college is an investment. Every investment comes with some risk. As an ex-officer in the military - I know that you are taking on some risk to go to an academy, just a different kind. He will more than survive financially. And, by the way, not every kid should risk taking on debt and not every major is worth a bunch of debt. God forbid someone study social work or philosophy or education while borrowing $120K. That’s insane.</p>
<p>Your friend is getting an applied math degree at an elite university. He won’t hurt for very long if he applies it well and is truly talented. As far as his grades, it won’t be long before all that is completely forgotten. It’s funny how something that seems so important in the present becomes so trivial after only two or three years out of college but it happens. </p>
<p>What’s most important is is he making friends and connections and landing internships, participating in clubs and studying abroad? If he’s a recluse pulling Cs, he may have some issues later down the road. Otherwise, it’s all good.</p>
i’m very happy with my choice even though it’s a tough road but i’m willing to go through it. skydiving is a once in a lifetime chance! :D</p>