So now that May 1st is rolling around very quickly, I have finally decided on where I want to go, CU boulder, in which I am an out of state student who received no financial aid. Unfortunately, my parents aren’t exactly happy with this decision, as they find this too expensive for the quality of education. My question is, shouldn’t the choice of college ultimately be the student’s decision, as it would be me paying of the loans? Also, do you think its worth the money for your dream school?
Well if your parents get PLUS loans then itd be them getting the loans… But yeah if you were solely responsible for paying it then it should be your decision.
I think of it as a joint decision, ideally…which means we look at the range of options, their cost, and the desire to go to each one. I wouldn’t sign for a loan if I truly thought it would overburden either one of us. At the same time, I don’t want to crush anyone’s dream. That is why I have encouraged my kids to realize that no college is perfect.
You need to have a conversation with your parents about how they expect you to pay for your education. Can they help you a lot, some, a little, or not at all? Unless CU Boulder offers a unique program that doesn’t exist anywhere else in the country, then you certainly must have other options elsewhere. And unless you are able to fully cover the costs of CU Boulder on your own because you have a ginormous college-savings fund, you may need to re-consider your list and opt for a more affordable place to study.
The loans won’t be yours, they will be your parents. And if you can’t pay them back they will be stuck.
How much will you be borrowing each year?
What is your major and career goal?
How much will you be earning upon graduation?
How much will you be able to pay in monthly payments?
And…who will and HOW will you be paying for “Greek Life”?
You can’t get a loan, kid. You have no credit. All you have to a banker is liabilities, and no assets other than your bank account.
Here’s what credit is: A proven track record over YEARS of making and keeping financial promises. And assets (what they own) which exceed their liabilities (what they owe). Assets - Liabilities = Equity aka Net Worth. Engrave this equation to your brain. It’s adult life until death. You can’t divorce it, either.
So, for you to get a loan IN YOUR NAME, your parents must co-sign and be a party to your loan, since they have the credit and assets. If something bad happens to you, their hard-earned credit (and maybe even their house) is kaplooey. With some loans, if something bad happens to them, you might be on the hook for the remaining amount IN FULL - AT ONCE, since it was THEIR credit which secured the loan, not yours. Maybe the bank will be friendly and offer you a repayment plan - at 20%+ interest (based on your sketchy or nonexistent credit history) rather than their 9% or less (based on their long history of prompt payments). This is not something to take lightly.
Boulder is great, though. My sister lives in the area.
Is a dream school worth the money? It depends on what you and your parents will be giving up in the future, so that you can attend now.
How much in the way of loans, and how much in the way of parent contribution (including parent loans or parent co-signing loans beyond the federal direct loan limit)?
Realistically, your net price limit should be the maximum your parents are willing to contribute plus federal direct loans plus a few thousand per year that you can realistically earn with part time and summer jobs. Lower is better, of course, since being at the very edge of your price limit can be stressful if any unanticipated financial setbacks occur.
You and your parents should have discussed the cost constraints before you made your application list. That way, you will know that any admission that does not come with enough scholarships or financial aid grants to fall within the price limit can be treated as a rejection. Knowing the cost constraints may also have let you build a list of more financially realistic schools.
@liv732, I’m sorry your parents didn’t discuss finances more thoroughly earlier in the process. They may not have realized how much costs have risen since we were in school. You can only borrow the federal student loan (about $5500/year). If you work every summer, you may be able to earn $3-4k, which gives you about $9500/year. So yes, if you can find a school that costs $10k or less (including books & transportation) you can choose to go there. Otherwise, you need your parents help. Most parents have to limit how much they spend for college, so you’re not alone.
Did you qualify for merit anywhere? What’s your parents EFC? Can they pay it? If their income is low enough (~$40k), you may qualify for a Pell grant. Did you get accepted anywhere they can afford?
@mom2collegekids is trying to help you. We graduated from college a long time ago, so nobody is going to be grading our spelling in the near future. Please take advice in the spirit in which it’s given. Good luck.
College decisions are the liability of both you and your parents. If I had it my way, I would be heading to University of Rochester taking out a boatload of loans. However, my parents made it clear that this was simply not financially feasible. We met halfway and I’m now attending a school that I LOVE in the fall with a price tag that makes my parents smile.
I also find it hilarious how you went through all of @mom2collegekids threads to find a spelling error. Please find something else to do in your free time lol.
What other schools did you get into and for what cost? Boulder is famously expensive for non residents.
At our school, it’s considered an out of state that only the wealthier families can apply to.
My kids applied to a few schools that were pricey, and they were told many times that they might get in but it might be over budget. It’s not fair to expect your parents to go into debt for college.
I think they are right, the quality of education at Boulder is not worth the big expense, unless you are in-state.
Again, what are your other schools, and at what price?
CU Boulder’s a nice place but beware the “dream school” trap. Plenty of people end up unhappy at their so-called dream schools. Unless your other options are truly unsuitable, you’ll be grateful to be debt-free later.