What is the maximum student loan someone can take in their freshman and subsequent years? I always thought it was $5500 but sometimes on the net price calculators they show as much as $6000?
Through the government, bases on FAFSA, $5500 for freshman, $6500 for sophomores and I think $7500 for junior and senior year.
Is the $5500 the max. you can have at the subsidized rates.
Also why do some schools put $6000 for school loan amount under the Net price calculator if you cant take that much as a frosh
Parent Plus loans or Perkins loans perhaps make up the difference.
whats everyones opinion on the amount of debt someone should come out with from college, when you studying elementary ed.
No, the subsidized amount can be $3500/$4500/$5500/$5500; $2000 of the maximum amount for each year is always unsubsidized.
If a student is independent or the parents cannot qualify for a Parent Plus loan, the undergrad student can borrow an extra $4000 or $5000 per year, which will also be unsubsidized.
There are also private loans, state government loans, and school loans that might be available.
I believe the Perkins loan program has been discontinued
The maximum student debt over 4 years is $27k total. I wouldn’t borrow more than that.
If you are studying elementary ed, I would go with $0 debt.
- Try to take as many AP classes as you can.
- If you are up to it, take some dual enrollment (Community college classes) while you are in HS. Then they are free! But, you have do well as they count against your college GPA.
- Look at your state public colleges,…they will be cheaper and will take any CC credits you have taken and will prepare you for what your state education needs are
- Run the Net Price Calculator to see how much financial aid you would get
- If you will get no aid and your parents won’t pay, then consider community college for 2 years andthen switch to 4 year state school.
Many school systems require teachers to get a Master’s degree within X years after being hired. In our area, that’s five years. That degree is on you – the school system will not pay for it, and since you would be teaching, your salary will preclude you from any FA other than loans.
Avoid burdening yourself with lots of loans for UG. Teachers don’t make enough $ to carry heavy loan payments!
Thanks for everyones help. Much appreciated.
Unless you have a plan to teach in a rural area that offers loan forgiveness or live in your parents’ basement, I wouldn’t take out debt for elementary education. In my state, teachers are highly encouraged, if not required, to have master degrees and then they aren’t even paid a living wage to start. If you can’t make enough to cover your living expenses, you surely won’t have enough to pay student loans.
Adding on to @bopper 's excellent tips: ask your academic counselor which courses, if any, you can take in the summer at community college, as sometimes this is a way to get the general education requirements out of the way very cheaply.
So what happens if you do take out the loan as an teacher and can’t pay?
@Religiousdude you can google what happens then. Default and you can’t declare bankruptcy to clear the debt.
Fortunately, there are income driven repayment plans available for federal loans that allow borrowers to repay based on income. This allows everyone to be able to manage repayment (as long as they budget the payment into their overall spending plan). This is why students should stick to federal loans only and avoid borrowing other loans to pay for school.
Research the state where you want to teach regarding loan forgiveness. Yes it is often for rural areas, but in SC it is also for schools that are Title 1 schools (high percentage free lunch qualified) and that includes schools in larger cities so you don’t have to move out to a small town to be eligible. There is also a program if you qualify to give you money upfront for college and you agree to teach in a critical need area for a set # of years - basically same idea but you have $ upfront. But if you change major, etc you owe the money back.
Those loan forgiveness plans are usually only after you have made 10 years of monthly payments. Anyone planning on teaching should not plan on taking out enough debt to need 10 years to pay it off.
You are not correct. There are loan forgiveness programs that forgive a certain %age of the loan each year if the person works in a certain area, in a certain job. That is what is being discussed.
I think @scmom12 is talking about the TEACH grants. Not all universities and not all states participate.