Comparing colleges is fun. But if schools cost many times what your family can pay it’s a waste of your time and energy. Your options that aren’t on your financial safety list seem to be:
Purdue at $40,000
North Central at $22,000
Illinois State at $18,000
It sounds like those net costs already have the student loans figured in. If your EFC is $30k and your parents can truly only pay $1,000/year, none of those are affordable.
If one of your parents lost their job you may be able to appeal for a little additional aid, but it likely won’t cut into your $30,000 EFC much and there’s no guarantee it would be renewed for the next 3 years. Unless your parents can pay much more than you’re saying, I wouldn’t spend much time researching any of those schools.
What colleges are on your financial safety list?
Purdue is offering an Income Share Agreement which would mean I would pay no interest but at a cost of a certain percentage of my salary for 10 years. Like I said please disregard the 1,000 part. And I am working with colleges to discuss the change in income. So for right now I need to pick what schools I like.
Since many keep asking it is probably 16,000 they can afford per year. Also, keep in mind I am applying for scholarships as well.
***Please Disregard the 1,000 per year comment
I think the minimum repayment is 2.5 x whatever you borrow. That sounds a lot like a loan with interest.
That’d be an exhorbitant rate though, right?
Here is Purdue’s ISA comparison tool…
https://www.purdue.edu/backaboiler/comparison/index.html
I did an economics major example, and the ISA would be the most expensive option as compared to both Plus and private loans
I will have to pay 3,000 a month!!!
It is not worth it right? Even if I have to pay interest?
You are probably looking at forecasted monthly income, not the payment. Then you would owe X% of that monthly payment for your ISA, each month for 100 months. You will have to run different scenarios on this and pay attention to the details. For example, I ran some iterations that show the TOTAL payment over 10 years is less than the total forecasted payments with both Plus and Private loans, even though the MONTHLY payment on the ISA is greater than the monthly payments on the Plus and Private loans. The ISA runs for 10 years, but Purdue’s model has the Plus and Private loans set for longer than 100 months, and at fairly high interest rates.
So, your situation will be unique, but the ISA could be the right choice for some students, with caveats and a big YMMV.
Although all this data analysis is interesting, Purdue will still be likely be unaffordable for you…and it is not worth taking on more debt than ISU.
Can you calculate how much I would pay per month. As Spanish major.
@bubblytaco That will be a good exercise for you to do. It’s pretty straightforward…I have every confidence you can figure it out.
I got 3,000 does that seem right.
Why is that astonishingly higher than the Plus loan?!?
That’s because you would NOT be allowed to borrow that much. In reality you’d only be allowed to borrow 1/10th of what you entered into the calculator.
(your monthly payments, all loans, total, should be about $300/month. It’s already a lot but it’s doable if you live frugally as a young graduate).
Anyway… it means Purdue is out.
Wait if it is 300 per month then it is actually a good deal
No, it’d be 1/10th of the loan and 1/10th of the repayment. You’d have to pay about $300 for 116 months to repay $10,000 - the maximum they’d let you borrow for each of sophomore, junior, and senior year.
Add $300 for federal loans.
It means you’d only have $2,000 a month (if paid at a regular teacher rate) to pay for health insurance, rent, utilities, phone, wifi, cable, car, car insurance, gas, and food.
They don’t allow you to borrow the whole costs and you can only borrow starting sophomore year, so you’d have to pay in full for freshman year AND do well in order to qualify sophomore year on, so the 1st year would be on top of that.
It means Purdue is unaffordable.
But they don’t have a certain amount you have to repay. So say the tuition is 40 k per year they void it. And do the ISA instead.
@bubblytaco
Listen to @MYOS1634 who is talking about what YOU will have to repay.
You can call Purdue and discuss this with them.
You are trying very very hard to make unaffordable options affordable. There is no pot of gold at the end of the rainbow. There isn’t.
Once you get to college…please…please take a personal finance course.