<p>I am choosing between Villanova, Boston University, Northeastern, Emory, and Fordham and each of these schools I will most likely be assuming between 40-60k in debt by the time i graduate. My question is what is a manageable amount of debt for a degree in business (most likely finance)? I have the option of a financial safety in Macaulay Honors - Baruch but I prefer to have a traditional university experience if possible. </p>
<p>YOU will be in $40-60K of debt? Who is lending you that kind of money at age 18? You can get your first finance lesson in this situation. </p>
<p>To borrow that much, you are most likely to have to involve your parents. If their financial situation is such that they can take out these loans and they are willing to do so, fine and good. Realize, however, that the debt is on THEIR heads and their credit reports, and in some cases where you and they sigh, you are shackled in it as well Not a good deal, unless the parents can truly afford it. </p>
<p>The amount of reasonable amount of debt is determined by how much a family can take on. Not a problem for a family in great financial shape to take on that kind of debt and more. For one that has financial issues, it can be a big problem To put the onus of repayment on the promises and hopes of an 18 year old is rather fool hardy. </p>
<p>If you are a dependent student, you could borrow up to $31,000 for the Direct loans from Federal government. See <a href=“http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#how-much-can-i-borrow”>http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#how-much-can-i-borrow</a></p>
<p>@cptofthehouse to clarify, I would be taking out 5500-8k per year in student loans and my parents would be taking out a 10k per year plus loan meaning around 60k in debt by the time i graduate…I do not want to shoulder all that burden on them so i will help to pay it back once i graduate and have a job. We are not in terrible financial standing (120k per year income) but we live in a high COL area so much of the family income goes to expenses </p>
<p>borrow the least that you can. Which school requires the least debt besides the honors one?</p>
<p>Work as much as you can over summers to also reduce needed loans. Work part time during the school year as well.</p>
<p>Each of the schools has met my EFC through combination of merit scholarship, grants, loans, and work study, however my EFC is not reflective of what my family can pay at all (unexpected spike in income for one year that will definitely not be happening again + 1 unemployed parent), we have an EFC of 20k but my parents can really only pay somewhere in the range of 12k so I’m at a loss of how to approach the situation. I am currently looking for a summer job to save some money instead of taking out future loans. </p>
<p>Unless you get Perkins loans or your school/state has other student loans, the maximums are the $31K over the 4 years. If your parents are denied PLUS, you can borrow an additional amount ($5K max0 a year, but then they can’t borrow PLUS. No guarantee that you get Perkins money each year as that depends upon how much a school gets and how they decide to distribute it year to year. So borrowing more than the Direct Loans may not be up to you. </p>
<p>Most families have problems paying their EFCs, and many cannot or will not. Very common problem. One of the most common ones. If your family, can’t pay that EFC, it’s often an warning sign that there are some financial problems going on, or the financial commitments are beyond what families with those resources and income usually have, so taking ou ta loan on part of your parents may not be a good idea. If they couldn’t save what is expected, can’t pay out of current income what is expected, for them to be able to repay those loans is pushing things. The past generally is the best predictor of the future in these situations. </p>
<p>Though the Direct loan maximums are what many say a student can “safely” take, do the numbers on what you will have to repay in six months after you leave school with those loans. My kids have NO loans, and family support and they are still having a tough time making ends meet. A lot of their peers who have that loan monkey on their backs are really having a miserable time of it. They are delaying the loans–and the interest does continue to rack up when they do this, and cannot make the payments. Ironically, many of them who took out these loans so that they could live at college are now back home living with the parents when they are in their 20s after spending that time away, and it can be a highly unsatisfactory living arrangement for all parties. </p>
<p>@cptofthehouse Villanova and BU are pretty much my top choices by far. If given the extra money i would commit to the one that gives me what i need with no hesitation. will they be willing to help me if I express my desire to commit? I was planning on meeting with the financial aid officers of both shools</p>
<p>@cptofthehouse i truly believe my parents can pay our EFC but they have been living a lifestyle (which I am grateful for as they always try to give me and my brother the best) that stretches them as thin as possible. My mother especially is reluctant to cut back on unnecessary expenses but my dad insists he can make it happen so I am especially torn on what to do</p>
<p>Closetohome…do you HAVE financial need…or do you WANT more money from these colleges? There is a huge difference. It sounds like you WANT additional money.</p>
<p>You say the schools have MET your EFC. Please understand, they are NOT going to give you financial aid to PAY your EFC. That isn’t going to happen. If they have given you aid so that your EFC + aid = the Cost of Attendance, they have met your FULL need. And yes, this aid can include the Direct Loan amounts.</p>
<p>Now…whether your parents can or want to pay that family contribution is up to your family. The college is under NO obligations to fund the family contribution.</p>
<p>@thumper1 I’m fully aware they’re under no obligation to help out with it, my question is if there is a way to get some more help from the schools, because I am seriously concerned as to whether or not my parents can truly pay the EFC or not. My parents have kept me in the dark for the most part financially but I do know that based on their expenses plus the fact that my father is unemployed they can not pay the full 20k. I’m asking for advice on what to do about my EFC</p>
<p>The school will not fund your EFC. What other kind of “help” do you think the school can give you? The EFC can be paid by using savings, current income or loans. You can help by getting a job and contributing to the costs. Your parents can cosign a loan for you or apply for a ParentPlus Loan. </p>
<p>Another option…would it be easier for your parents to do a monthly payment plan? It would be about $1000 a mont for 10 months, but some folks find that easier to manage than a $5000 payment per semester.</p>
<p>And remember to discuss this as a FOUR year plan. You don’t want to get to one of these colleges for your freshman year, and find you cannot fund it in subsequent years.</p>
<p>Really, you need to discuss this NOW with your parents. Only THEY can tell you whether they can meet this financial obligation. If they really cannot afford to make these payments, you will need to consider more affordable options.</p>
<p>Be aware that the term “EFC” technically refers to the FAFSA number that appear on your SAR. Many times that term is used loosely to also define what colleges require you to pay. That is often referred to as “institutional” EFC. </p>
<p>You are not permitted to get any federal aid other than PELL until you pay your EFC. Subsidized loans, Seogh, workstudy all are federal aid. Also most colleges have internal policies regarding that federal EFC. That depends upon the school. So your FAFSA EFC is often the rock bottom amount you can expect to pay, and it only goes up from there, because every dollar a school gives you towards it, comes off the federal aid. </p>
<p>I do recommend you make an appeal of sorts to the schools, but do realize that they get many such appeals and do not give more to everyone. Everyone has a story. The colleges are not interested in saving your parents from having to scrimp, borrow, suffer or get into financial trouble. Not one bit. Often it takes a mistake, documented hardships like medical bills, needs, unemployment at the moment to get them to cough up any extra. Sometimes if a competing school comes up with a better offer, another school will stretch a bit. If you are a top catch for the school, maybe some more But truly, it often comes down to a little more loan money or workstudy if the school can even give it to you with FAFSA restraints and limits. </p>
<p>@thumper1 the idea of a monthly plan would probably help tremendously. The thing is i’m worried that taking out 10k loans via plus per year to cover half the EFC might be unmanageable. I’ve heard many horror stories regarding debt and I just want to be able to responsibly take out loans and be able to manage the debt in future years if it comes to that. </p>
<p>I am currently looking for a summer job to try and help my parents with the remaining cost </p>
<p>None. </p>
<p>@sparksflying as much as I would love to take on no debt, that is just not a reality unless i opt for the macaulay program </p>
<p>Closetohome, many students do take on debt and though it is painful to pay off, are in good company with the $31K + interest accrued that they borrowed through Direct Loans. When you start taking out more, which unless you get Perkins, is highly unlikely without involving your parents, it can become a real problem. When you finish school, finding a job takes $s. Working a job that first year often requires an investment of sorts. It’s not that easy to find a job with a living wage and if you don’t want to move back home, getting a apartment and meeting living expenses is expensive. When some aid is forthcoming from parents, even after college, it can really be a big help. My one son got a dream job that paid for a lot of his start up costs, and he got it pretty quickly after college, but even then, we gave him a hand in getting interview clothes and other things necessary for him to be in the league to get that sort of position. Then we bought him some clothes for work when he got the job and helped him get some essential for the apartment he got. He had a car, thank goodness, and with some summer work $s kept that in shape. But it took a bit before he got that first paycheck. And this is a kid with a high paying summer job with flexible hours, living here with us while job searching, a luxury most do not have. So it doesn’t end with college. </p>
<p>Then those student loans become due at the end of the year, and it can be rough when you don’t have a decent paycheck coming in. If your parents are also hit with repaying their loans too, they are going to be strapped as well. So keep all of this in mind. Will they qualify for PLUS even? They can’t have long overdue payments on the credit report to qualify. ALso remember any gap is likely X 4 and some, as costs tend to go up each year and the student is expected to take on more of the cost, coming off of the school’s part of the cost. So you are driving that brand new car off the cliff every single year for at least 4 years.</p>
<p>
Does this $40,000 to $60,000 debt include any loans to cover your EFC?
</p>
<p>Closetohome:</p>
<p>Good for you. FYI, many companies have tuition assistance programs. The company pays all or part of your tuition. Check into it. </p>
<p>Also, be mindful of something most students never think about. Let’s say you want to start a business after college. The banks won’t even talk to you if you’re carrying piles of student debt. You must have assets to get a business loan. Crazy? Yes. True? Yes. </p>
<p>Do whatever you can to keep your student debt low to non-existent.</p>
<p>
Graduate schools: maybe; undergraduate: not many.</p>