<p>I’m not even certain that the OP’s parents aren’t including student loans in the $30k per year budget. The OP hasn’t been really clear about what his parents can pay. I’m not sure if he’s ever gotten a clear number that his parents will directly contribute with cash.</p>
<p>$40k in debt is a lot. And, it’s too much if it can be avoided - unless going to a MIT/Cal Tech kind of school.</p>
<p>$40k in debt involves federal loans and private loans. Fed Direct loans are only to $27k. Borrowing that additional money requires co-signers…which most parents won’t do.</p>
<p>And, since college costs rise each year, that $40k estimated debt is probably underestimated. By the time that student is a junior or senior, a school that costs $40k per year now, will be costing $46k+ per year then. So, his real debt could be $48k+</p>
<p>By the time the kid graduates, the debt is easily going to be $50k+. His payments are going to nearly $600 per month for 10 long years. That’s like 2 additional car payments…in addition to whatever car payment he actually has! </p>
<p>How many new grads can afford 2 or 3 car payments in addition to all their living expenses?</p>
<p>When you’re employed and your co-workers who don’t have that debt are making the same as you, you’re going to be very annoyed that $6k per year of your “take home pay” is going to debt that you didn’t have to incur. They will be buying homes and moving on with their lives, while you’re stuck with this debt.</p>
<p>If you had no other choices, then you could live with that annoyance. But, if you look back and realize that you didn’t need to incur that debt, then those monthly payments are going to be an albatross around your neck.</p>
<p>My H used student loans for grad school…which he didn’t need to do. He had a fellowship for tuition, room, board, books. He only borrowed money to pay for dates and entertainment. </p>
<p>So, imagine how annoying it was to pay back that money when the loans were not necessary? Believe me, he regretted it. When we went to buy our first home, we had to take into account that we couldn’t afford as much because we still had his stupid student loans (that were unnecessary!)</p>