<p>"Early Decision PLUS
Loan
56,620.00"</p>
<p>Out of Stern's annual $67000 cost, the bulk of the "financial aid" consists of that ED Plus loan... </p>
<p>is this worse than private loans?
And also, where can I find information about its interest rates?</p>
<p><a href=“Admitted by NYU but no grant or scholarship, can I negotiate or appeal? - Financial Aid and Scholarships - College Confidential Forums”>http://talk.collegeconfidential.com/financial-aid-scholarships/1433303-admitted-by-nyu-but-no-grant-or-scholarship-can-i-negotiate-or-appeal-p1.html</a></p>
<p>You might find this thread of interest.</p>
<p>That’s just NYU’s typically deceptive packaging – it’s not “financial aid” - it is a parent PLUS loan which is a federal loan, interest rates are not good, but it has some protection that doesn’t come from a private loan.</p>
<p>Any person dumb enough to take out that much money to attend Stern… doesn’t belong at Stern. </p>
<p>On the positive side, it should be relatively easy to get released from that ED commitment. </p>
<p>@calmom what do you mean by “some protection”? </p>
<p>Just one example: The parent PLUS loan is discharged upon the death of the student/parent. Some private lenders do not offer such protection. It can also be deferred while the student is enrolled at least as a half-time student. </p>
<p>However interest will not be deferred as with subsidized Stafford loans.
Over $56k for one year?
If the parent could afford that, wouldn’t they have been able to save at least a little before now?</p>
<p>@emeraldkity4 Yea Ill have to discuss this with my parents… i honestly dont know what to do. Stern is a fantastic school with great wall street job opps., but my gut tells me I shouldnt have my parents pay so much tuition.</p>
<p>You applied ED? Did you discuss the finances of NYU with your parents before you applied? </p>
<p>If the school is not affordable, decline the admission offer…and get your regular decision applications all sent if you haven’t already done so.</p>
<p>No one should borrow $56K per year for college, but NYU packages its aid to list the maximum available loan-- as a way to make it appear that there is a full need award. Of course, all parents with acceptable credit are legally allowed to borrow up to the full COA with PLUS loans – so it’s not an offer at all.</p>
<p>However, we know nothing of the OP’s actual financial status – for example, perhaps the parents are able to pay $40K per year for tuition – in that case the parents might borrowing $20K a year and paying the rest up front. That still would be a hefty loan burden for a family with modest income-- but perhaps not such a horrible outcome for a family with the means to pay $40K per year, or a family that expects other current expenses to decline in the future. </p>
<p>Borrowing can be a helpful part of college financing – the key is that the amount borrowed must be part of an overall plan that is within the parents’ means. I took Plus loans for my kids and I had my loans paid off within two years of my daughter’s graduation – the key is that I was paying what I could out-of-pocket and taking the loans to fill in the remaining gap, and once my daughter graduated I could redirect the funds that were no longer going to support my daughter to accelerate payment of the loan – and I had kept my borrowing down to $10K or less per year. I simply figured what the monthly payments would be and was careful to avoid borrowing more than that. </p>
<p>I just don’t like the way NYU presents its awards. It would be far more honest for the school to simply list whatever grant aid, work study, and student loans are being offered the student – then list the remaining amount the family needs to pay, and include a mention of the PLUS loan as one option the parents could look at to help with coming up with the balance. </p>
<p>(I’d think that a family with a moderate 6-figure income - say $175K - might be in the position where they could manage the higher tuition but find it difficult to pay the full amount up front. The bottom line is to do the math on the amount of payments and some basic debt-to-income calculations)</p>
<p>@jarjarbinks23 I work on Wall Street – don’t think Stern is your only path (honestly, when I think about the kids hired the last few years for my division, there isn’t a NYU grad among them. Now Stern MBA, that is a different story – but not for UG). There are lots of ways to get to Wall Street…don’t fret. And definitely don’t go into debt to get there.</p>
<p>I think the interest is alittle over 6% now. Sounds like you got into Stern with no aid with the option a Parent Loan and a Student Loan? Was no financial aid or very little financial aid what you and your parents expected? If so, congrats on your acceptance. If not, do you have applications in somewhere that you know will be financially feasible if you need to turn this ED down?</p>
<p>On the CSS, my parents said they could pay $40,000 a year… still, I didn’t expect to see up to $60,000 being purely loans.</p>
<p>Also do you users think the FAFSA will change my financial aid package, if at all? My parents are neutral right now and they’re going to discuss it with my college counselor, but all of us are secretly hoping the FAFSA will make some impact.</p>
<p>@Ramon712 Really? Aren’t there a lot of stern undergrads in the bulge brackets? Stern is well known for being a finance powerhouse and pumping out BB analysts.</p>
<p>I agree about NYU and how it presents its FA deceptively. It was DD’s dream school but we told her they have lousy aid and if was too expensive, it wouldn’t work. When she got accepted, she came running in and said, “Look, they gave me a lot of aid.” Turned out that everything but 10k or so was loans. When we explained this, she understood and she ended up elsewhere, a very good LAC with much better aid.</p>
<p>“Turned out that everything but 10k or so was loans. When we explained this, she understood and she ended up elsewhere, a very good LAC with much better aid.” </p>
<p>If more parents and kids were as savvy and reasonable as you guys, there would be fewer NYU applicants and fewer families paying off ridiculous NYU loans. </p>
<p>Jarjarbinks…can your parents pay $40,000 a year? Because if they can…you will “only” need $20,000 a year on loans to attend NYU.</p>
<p>But really…on a $60,000 a year income, their take home pay would not be enough to pay this cost to attend college and their other living expenses.</p>
<p>In August, you said your parents and you were all on board with NYU. Did your oarents NOT know the costs?</p>
<p>Unless you qualify for a Pell grant, I can’t see the FAFSA changing your aid package.</p>
<p>@Jarjarbinks23 – NYU doesn’t commit to meeting full need of students, so your FAFSA is not really relevant, except to the extent that might qualify you for a subsidized direct loan or work study – but I am guessing that the subsidized loan is already included in your package. NYU also will not really negotiate their financial aid – if an RD student “appeals” an award, they typically will add $1000 or $2000 to the grant amount, so maybe a $10K grant becomes a $12K grant, but that usually doesn’t make a dent in the total. I don’t know whether they’ll do anything for ED students – you can ask, but you gave up what little leverage you had when you signed the ED commitment. Bottom line - NYU doesn’t care what your actual need is --they leverage their aid through policies that are based mostly on where you stand among their admitted students. The top 5% get offered generous aid packages, then everyone else gets very modest grants or nothing at all. </p>
<p>I’d add that I know NYU aid policies because it was a dream school for my daughter – but I wouldn’t have allowed her o apply ED anywhere, and she didn’t ask – at the time it would have cost us about $30K for her to attend NYU – she had a much more attractive offer from Barnard, so that’s where she went. But she is attending NYU now about half-time as a grad student, with a 50% tuition scholarship. As a grad student, she qualifies to borrow whatever she needs to make up the difference on her own – but she’s fully employed and will have the benefit of income based repayment options in the future if she ever suffers a significant reduction in income.</p>
<p>So i seems that NYU is a lot more flexible about money with grad students. You might do well to attend a college that is more affordable now-- you may find that in the long run you are better off with an undergrad degree from a reputable college that can meet your family’s need (or offer more in merit money), and an MBA from Stern. </p>
<p>Jarjar- Stern is not a powerhouse for wall street, despite what you are hearing from other 17 year olds. Stern does just fine in the wall street hiring- which is logical given that the school is a long walk (or short taxi ride) from where the big banks and brokerage firms have their headquarters.</p>
<p>Fordham also does fine. So does Baruch, SUNY Binghamton, Queens college and Brooklyn. The kind of debt you are talking about is absolutely absurd to go to Stern as an undergrad.</p>
<p>What if you get there and decide you hate finance and want to study social work or ethnomusicology? Your debt doesn’t go away because you change academic focus.</p>
<p>A loan by any other name…</p>
<p>I do find that a lot of high school students view certain colleges as exclusive ‘feeders’ for their dream career though. I don’t really know why this is to be honest; is it really plausible that a major industry like finance would be able to operate if it hired mostly or exclusively graduates from one or two colleges?</p>
<p>I don’t know if this is true for any industries, but I do know from my own personal and professional experiences that while on-campus recruiting is used somewhat heavily on Wall Street and in Big Four consulting, it’s not limited to just one or two schools. Most of the firms have a network of schools that they recruit from, usually based on geography as well as academic majors (and probably some personal bias on the part of the managers there). Even with that, though, they still hire graduates from other places. From a business standpoint though, it doesn’t make sense to put yourself in hock for this one school; you’re not really getting a leg up on other job candidates and you’re limiting your options if you take out all this debt (unless your parents are comfortable with paying it).</p>
<p>I think Calmom is right though; I’d save my debt capacity for grad school where it might actually matter.</p>