<p>If attending the University of Chicago would mean student loans of $15,000 to $25,000 each year, and I have a strong interest in attending, is that amount justifiable when compared to graduating debt-free from a decent private research university (Case Western Reserve University)?</p>
<p>I intend to major in Biology and pursue a post-baccalaureate degree in a similar field or profession.</p>
<p>Unless you have 'decent expectations' (e.g., you have a very elderly, rich relative that has put you in his will), or your parents will be able to help with your loans, IMO this is too much debt. Join us in Cleveland - Chicago is wonderful, but Case is pretty nice, too!</p>
<p>Even 60 K is pushing it for college with no further assistance. It would be hard for it not to be a hindrance towards attending graduate school in a timely fashion. Biology related post BA lab jobs pay around 45K in the private sector, far less at universities, so even with two years of work experience you would not likely bring that number down.</p>
<p>I disagree though I haven't been put in a position of being in debt yet. I just think that if you have strong interests of attending and you think you'll do very well, 15k a year isnt too much to handle. I'll be taking on a bit more than that every year to attend UChi. Just seriously consider it.</p>
<p>Go for the offer in UChicago and just start your career in debt. To throw away a near-perfect education because of 60K is like mortgaging your future. Just go for it, and in the long run you'll be earning more money than if you had attended anywhere else.
Also, that way you learn how rubbish it is to be living in debt, and you'll be more careful with money the rest of your life ;)</p>
<p>It's not "like" mortgaging your future, it "is" mortgaging your future. Look up the posts by Taxguy. It's a tough decision to make.</p>
<p>If you are not paying the interest as you go along but are instead capitalizing it (adding the interest to the outstanding loan balance then paying interest on the interest) your debt will have grown much larger by the time you graduate. Assuming an 8% interest rated you re looking at approximate figures of:</p>
<p>For $15,000 a year:
By the end of 4 year the debt (including capitalizing the interest) will have already grown to @ $73,000. If you continue to capitalize the interest while you are pursuing a post bac degree the debt will grow by @ $5850 the 1st year and byt about $6300 the second year so after 2 years you will owe @ $85,000. That is not including any debt you incur while pursuing the extra education. So you will be starting your working life with a debt of $85,000.</p>
<p>For $25,000 a year:
By the end of 4 year the debt (including capitalizing the interest) will have already grown to @ $122,000. If you continue to capitalize the interest while you are pursuing a post bac degree the debt will grow by @ $9760 the 1st year and byt about $10540 the second year so after 2 years you will owe @ $143,000. That is not including any debt you incur while pursuing the extra education. So you will be starting your working life with a debt of $143,000.</p>
<p>If you look at this site
FinAid</a> | Calculators | Loan Calculator
ther is a loan calculator that tells you how much your monthly payments would be based on the loan and the term and the interest rate. It also tells you the recommended salary needed to comfortably make those payments.</p>
<p>To pay the loan off in 10 years with an interest rate of 8%</p>
<p>For the $15,000 a year debt of $85,000: Monthly payment $1031 and a recommended salary of $124,000 a year.</p>
<p>For the $25,000 a year debt of $143,000: Monthly payment $1700 and a recommended salary of $208,000.</p>
<p>So do you realistically think you will start your career earning $124,000 to $208,000 a year? Do you want to have to chooses your career based on whether you can earn the money to pay such large loans rather than a career you love? What else would you like to do in the future - buy a house, a nice car, have vacations, have a family. How much will this debt affect your ability to do these things? </p>
<p>And remember this is just your undergrad debt - it does not include any debt for your masters or doctorate.</p>
<p>Compare that to being debt free.</p>
<p>My blood runs Maroon, but under these conditions I would seriously consider Case Western, a very fine university.</p>
<p>
[quote]
Go for the offer in UChicago and just start your career in debt. To throw away a near-perfect education because of 60K is like mortgaging your future. Just go for it, and in the long run you'll be earning more money than if you had attended anywhere else.
Also, that way you learn how rubbish it is to be living in debt, and you'll be more careful with money the rest of your life
[/quote]
</p>
<p>Uhh... not necessarily. My <em>dream</em> job pays less than the annual COA for Chicago, and if I had to take on any significant amount of debt at Chicago, I would have opted for a cheaper school so that I could pursue my dream job without being hindered by debt.</p>
<p>Debt plays a lot into quality of college experience, too. I can't imagine if I not only had to worry about debt, take on jobs that pay well, but also I were limited by my social expenses. Almost anything that is enjoyable... alcohol, concerts, food, etc. costs a significant amount of money.</p>
<p>DH had $55k in student loan debt when he graduated from a T14 law school (late 1980s). It was $800+/mo. for almost ten years. Didn't buy a house til we were 37 and the kids were finally in elementary school. Between student loans and day care, paying rent in a high-cost area and trying to save for a down payment, we were strapped. No help from either of our parents with anything after HS graduation.</p>
<p>That kind of debt affects all sorts of decisions in your life that you can't even imagine now -- travel, what kind of job, what your spouse does for a living, when to have kids, who will care for them...</p>
<p>As a parent, I would not let my sons take on that kind of debt. Stafford loans are one thing; I think they need to have skin in the game. $60-100K for undergrad: no way, no how. They couldn't get those kinds of loans without a co-signer, and DH and I would refuse to do it.</p>
<p>Thanks for citing the calculators, swimcatsmom. </p>
<p>Students - it is one thing for parents to assume a big chunk of debt. We are more likely to have emergency assets squirreled away ... and we are sort of used to dealing with crushing debt. I agree with Counting Down that having some debt is not a bad thing - but it has to be managable without having to invoke massive good luck from the job deities. And don't forget - your projected gross salary and your take home pay aren't the same thing at all.</p>