Student Loan Options... PLEASE PLEASE HELP

[PinballFamily]

OP - not going to chime in with college cost/loan info, but here's my two cents on your DD's plan for the Disney College program after graduation... if she really wants to do the CP - she should do it while in college, not after. My DD did the program twice (summers) and enjoyed it a lot, but these kids don't make any money. Pay *barely* (if at all) covers their living expenses while at WDW. If your DD has student loans coming out of undergrad, I can't really see how she'd be able to begin making loan payments on CP pay. (The PI program does pay a bit more, but not a lot. And competition for these few spots is FIERCE - many talented kids don't get accepted.) The CP/PI experience is wonderful, but not everyone can afford to take the financial hit to do the program. I'm sure folks on the DIS College Board forum could give you more info.

 

[Robinrs]

Saw this on Business Insider yesterday.

The next page has a CATC calculator (College Affordability and Transparency Ctr) for the net price of the highest and lowest colleges (net equals what is paid AFTER grants etc.) I'm sure it's different based on circumstances but it's interesting nonetheless:

http://collegecost.ed.gov/catc/#

 

[NotUrsula]

With a soon to be college frosh in the house, I'm reading this thread with interest. Anyone know what the stats are on average student loan amounts for college freshman?

Do you mean how much debt is average for a new graduate in the US?

If so, that's an easy number to get. According to the Project on Student Loan Debt, the average for a Bachelor's degree was just under $29K last year. Essentially, about the price of a new minivan.

While I'm not wild about DS borrowing money for school, this much debt seems to not be too unreasonable to me. Borrowing the price of an average new car is a relatively reasonable debt to take on if you have basic earning potential, but more than that isn't wise.

 

[Christine]

Do you mean how much debt is average for a new graduate in the US?

If so, that's an easy number to get. According to the Project on Student Loan Debt, the average for a Bachelor's degree was just under $29K last year. Essentially, about the price of a new minivan.

While I'm not wild about DS borrowing money for school, this much debt seems to not be too unreasonable to me. Borrowing the price of an average new car is a relatively reasonable debt to take on if you have basic earning potential, but more than that isn't wise.

That is a reasonable amount; however, what I am seeing with my daughter's classmates as well as some family members are kids going to school with NO money and they are financing not only tuition but room, board, and books. While the tuition may run $9,000 a year at a public 4-year university, they are financing it all which is totally close to $20,000 per year. We know so many that have come out just recently with at least $40K in debt.

 

[LisaR]

That is a reasonable amount; however, what I am seeing with my daughter's classmates as well as some family members are kids going to school with NO money and they are financing not only tuition but room, board, and books. While the tuition may run $9,000 a year at a public 4-year university, they are financing it all which is totally close to $20,000 per year. We know so many that have come out just recently with at least $40K in debt.

This seems to be the norm with people we know, as well. DD has a friend who just finished up her first year at a private college that runs $40,000 a year for tuition, room and board. She received a $10,000 scholarship which is dependent on her GPA. They have nothing saved for college. I mean nothing! When it is all said and done, she will have a minimum of $120,000 in loans for her undergraduate degree in........wait for it........psychology! It truly boggles my mind.

 

[leebee]

DD's financial aid has hit a snag, of sorts, and so I've been talking to financial aid here at UMaine. One thing I learned is that most students graduate from UMaine with about $25K indebtedness for JUST Stafford loans (both sub and unsub). This number doesn't include 'outside' loans. PLUS loans, etc.That's for 4 years of attendance at our state's flagship University with a COA of about $20K a year.

 

[teller80]

Do you mean how much debt is average for a new graduate in the US?

If so, that's an easy number to get. According to the Project on Student Loan Debt, the average for a Bachelor's degree was just under $29K last year. Essentially, about the price of a new minivan.

While I'm not wild about DS borrowing money for school, this much debt seems to not be too unreasonable to me. Borrowing the price of an average new car is a relatively reasonable debt to take on if you have basic earning potential, but more than that isn't wise.

That number sounds like the student portion of the loan - $5500 year one, $6500 year two, and $7500 years three and four. That is the max students can borrow, those four years together equal $27,000. I HIGHLY doubt there are no other loans - ie parent plus loans. I would venture to guess tuition, room, board & books averages $17k a year at a state school. Times four is $68k, minimum.

That is a reasonable amount; however, what I am seeing with my daughter's classmates as well as some family members are kids going to school with NO money and they are financing not only tuition but room, board, and books. While the tuition may run $9,000 a year at a public 4-year university, they are financing it all which is totally close to $20,000 per year. We know so many that have come out just recently with at least $40K in debt.

On top of the $29k that the student was able to borrow would be my guess.

 

[NotUrsula]

That number sounds like the student portion of the loan - $5500 year one, $6500 year two, and $7500 years three and four. That is the max students can borrow, those four years together equal $27,000. I HIGHLY doubt there are no other loans - ie parent plus loans. I would venture to guess tuition, room, board & books averages $17k a year at a state school. Times four is $68k, minimum.

Well, yes, if you borrow the entire cost, but I think that probably half of families do manage to pony up a bit out of savings and earnings each year. Nowhere near what the Feds consider a reasonable EFC, but enough so that at a LOCAL public college, the student can get away with just loans in his own name plus what he or she can earn in addition. If not, private loans are also a possibility; I took out a small private loan myself. I absolutely NEVER would have asked my mother to take out a loan in her name for my education, and I guarantee that if I had she would have busted a gut laughing. My education, then my debt.

Only about 17% of the number of students enrolled at public colleges live in dorms; the vast majority choose schools close enough to commute to, so that cost is lessened for them. It's quite possible to manage on just what a student can borrow in his or own name, though it might take a while.

On top of the $29k that the student was able to borrow would be my guess.

Perhaps, but the site gives the impression that the numbers reflect how much debt the student accumulated, not how much he or she was responsible to repay. I think that the high-20's number is accurate for at least half of recent graduates.

 

[spacemountainmom]

Only about 17% of the number of students enrolled at public colleges live in dorms; the vast majority choose schools close enough to commute to, so that cost is lessened for them. It's quite possible to manage on just what a student can borrow in his or own name, though it might take a while.

Interesting statistic since my DD insists that she is the only student in the whole world who has to live at home and go to college.

 

[NotUrsula]

Interesting statistic since my DD insists that she is the only student in the whole world who has to live at home and go to college.

The 17% does add up to just a smidge over 3M students, so maybe she's at a top-heavy school, LOL.

Some schools do have a lot fewer commuter students than others; that is the national average.
Personally, I think there is great value in putting in at least a year in a dorm, but I know not everyone agrees with me on that. Anyway, as long as we can manage the cost (WITHOUT taking our any loans ourselves -- that is totally off the table!), we want DS out of the house. It will do him a world of good to learn to share a 12' x 14' room wiith a total stranger. We are a lot alike, and it was a hugely important experience for me; taught me a LOT about really learning to get along with others.

 

[PlutoPony]

Personally, I think there is great value in putting in at least a year in a dorm, but I know not everyone agrees with me on that. Anyway, as long as we can manage the cost (WITHOUT taking our any loans ourselves -- that is totally off the table!), we want DS out of the house. It will do him a world of good to learn to share a 12' x 14' room wiith a total stranger. We are a lot alike, and it was a hugely important experience for me; taught me a LOT about really learning to get along with others.

Totally agree. My son just finished his freshman year. Living in the dorm really taught him a lot and not all of that was from living with just a roommate. Being in close proximity with those in his hall day in day out is quite different from seeing the same kids at high school each day. You know them in a different way, and that bleeds over into other areas like how to work with them on projects when you've hung out in the hall with them til 2am the day before and they didn't get any work done. And then there's the co-ed aspect of dorms....an education in itself

 

[NewRVLady]

Interesting statistic since my DD insists that she is the only student in the whole world who has to live at home and go to college.

Local University here

My oldest moved out and always lived with friends-but had to work to pay for housing
Youngest stayed home-he tried living in apt, but his work load at school was immense and didn't leave him time for work, so he moved back.


we were lucky that both kids had scholarships that paid for college-we helped with books etc

 

[PatsGirl]

A different/new school is in order unfortunately

I've spent many, many hours developing a spreadsheet with DD17 of colleges she is interested in and feel like I can chime in here with some pretty recent information.

I am not sure where you are located but there are MANY schools, very good schools, in the Northeast where they meet 100% of financial need. For those whose income is less than $50K, that almost always means nearly free. These are the schools with price tags in the $58-$62K range.

We are having difficult finding schools (other than the state schools) that are under this price range. Because DD's dad puts us out of most financial aid scenarios (and yet will not or can not pay the full amount of EFC he'll be "assigned") we are now researching schools with the best merit aid. It sounds as though your daughter might be in a category where she could good substantial aid. One advisor told us to look at schools that would want DD, those that the average student is a bit below her capabilities, and they would offer the most $$. Another advisor told us "a white girl with a GPA in the 4.0 range and SATS at 200-2100, looking to attend a NE mini-ivy school, is the kiss of death" and we should look outside the NE area. We are now looking at schools in upstate NY and the Philly area.

Although DD will most likely be accepted into most schools on her list, it'll all come down to the financial packages she is offered. I believe, like someone else mentioned on this thread, that a good student will do well anywhere. I refuse to mortgage the farm to pay for her bachelors degree. In the end, even though she doesn't really want to go to a large school, she'll go to UMass Amherst if that is all we can afford. Not that it is a bad school, in fact, it is a great school, but it is VERY large.

I'd go to collegeboard.org to their search engine, pick a major, a region, and 100% need met and see what pops up. You can use their financial estimating calculator for each school. You might be surprised at the list of schools she can chose from and that are affordable to you.

Good luck!

 

[spacemountainmom]

The 17% does add up to just a smidge over 3M students, so maybe she's at a top-heavy school, LOL.

Some schools do have a lot fewer commuter students than others; that is the national average.
Personally, I think there is great value in putting in at least a year in a dorm, but I know not everyone agrees with me on that. Anyway, as long as we can manage the cost (WITHOUT taking our any loans ourselves -- that is totally off the table!), we want DS out of the house. It will do him a world of good to learn to share a 12' x 14' room wiith a total stranger. We are a lot alike, and it was a hugely important experience for me; taught me a LOT about really learning to get along with others.

Actually she's at a very commuter heavy school. It's just all of her friends live in the dorms. I do think a year in the dorms would have been good for her, it just is not in the financial picture for us/her to take out loans for her to live in the dorm.

We live 13 miles from campus. The most basic housing and food plan costs $8,000 a year. You can buy a pretty nice used car for $8,000 and it will last far longer than one school year. She still complains but understands that a minimum of $32,000 over four years is way too much to pay for "the college experience".

It would have been cheaper to go to many other schools and live in the dorm. It was her dream to attend this school and she gets that she had to sacrifice dorm life to do so. I just like to poke the bear when she complains.

 

[teller80]

Actually she's at a very commuter heavy school. It's just all of her friends live in the dorms. I do think a year in the dorms would have been good for her, it just is not in the financial picture for us/her to take out loans for her to live in the dorm.

We live 13 miles from campus. The most basic housing and food plan costs $8,000 a year. You can buy a pretty nice used car for $8,000 and it will last far longer than one school year. She still complains but understands that a minimum of $32,000 over four years is way too much to pay for "the college experience".

It would have been cheaper to go to many other schools and live in the dorm. It was her dream to attend this school and she gets that she had to sacrifice dorm life to do so. I just like to poke the bear when she complains.

She may complain now but when her friends are making loan payments long after graduation and she isn't, she'll thank you.

 

[leebee]

Another advisor told us "a white girl with a GPA in the 4.0 range and SATS at 200-2100, looking to attend a NE mini-ivy school, is the kiss of death" and we should look outside the NE area. We are now looking at schools in upstate NY and the Philly area.

Although DD will most likely be accepted into most schools on her list, it'll all come down to the financial packages she is offered. I believe, like someone else mentioned on this thread, that a good student will do well anywhere. I refuse to mortgage the farm to pay for her bachelors degree. In the end, even though she doesn't really want to go to a large school, she'll go to UMass Amherst if that is all we can afford. Not that it is a bad school, in fact, it is a great school, but it is VERY large.

Regarding the bolded, this is exactly what we were told, and learned, when DD was looking at schools 4 years ago. The admissions counselor at Princeton pointed out that he has a stack of applications 6' high from kids with similar qualifications to DD's, and unless she'd been a national science contest winner, outstanding nationally recognized athlete, etc., well, too bad, so sad. It was a bitter pill to swallow after all her successful hard work in high school, in addition to her volunteer work, school involvement, and 25 hours a week in the dance studio, to realize that she was just "average" for the top colleges.

Regarding UMass Amherst, you are right, it's HUGE out there. When DD was applying, the pushed the concept of the 5 college consortium, although even with a shuttle bus, it seemed like it'd be pretty hectic taking classes at 5 different schools. However, DD has one friend who matriculated at UMass but took almost all of her classes at Smith. It was a pretty sweet way of getting a Smith education at a UMass price. Yes, her degree says UMass, but she had the privilege of a private school education for far fewer dollars than those who matriculated at Smith. Something to consider.

 

[PatsGirl]

Not to hijack the threat, but Smith is one her top five choices and with any luck, they'll have her and provide a package that we can afford. She is applying to all five schools there (except Hampshire) and we feel confident she'll get accepted to each one, including the Honors College at Umass, except Amherst. That is a reach school for her but hey, you never know. I think I'll start a new thread because so many questions are now popping into my head and I don't want to hijack any further than I already have...

 

[MrsPete]

That is a reasonable amount; however, what I am seeing with my daughter's classmates as well as some family members are kids going to school with NO money and they are financing not only tuition but room, board, and books. While the tuition may run $9,000 a year at a public 4-year university, they are financing it all which is totally close to $20,000 per year. We know so many that have come out just recently with at least $40K in debt.

The loan folks PUSH kids to borrow. When my daughter was a rising freshman, she kept-kept-kept-kept-kept getting letters and emails about borrowing. In fact, though they've slowed, I'm pretty sure one is waiting over by the door right this minute.

A couple of these places sent her detailed lists about how much $$$ she'd need each year, including clothing, toiletries, transportation, books -- even though her university includes textbooks in their tuition! -- and they offered to lend her something like 150% of the cost of attendance!

When they keep on asking, I do understand why even the most anti-debt kids -- in a moment of weakness -- say, "Oh, why not just borrow!"

looking to attend a NE mini-ivy school, is the kiss of death" and we should look outside the NE area.

What in the world is a mini-ivy? The Ivy League is made up of exactly eight schools -- you can't be in that league on a "mini" version.

She may complain now but when her friends are making loan payments long after graduation and she isn't, she'll thank you.

Yeah, but you're saying that from the viewpoint of an adult with enough life experience to know that debt is bad. The young girl in question doesn't yet realize that -- oh, she knows it, but she doesn't KNOW it.

What's that saying? Life is a tough teacher because it gives the test first and then the lesson.

 

[PatsGirl]

Mrs. Pete, I beg to differ. "Mini-ivy" is a common term in the Northeast. Those included are generally the NESCAC schools and other small selective liberal arts colleges: Amherst, Williams, Hamilton, Middlebury, Vassar....at this time, there are a couple dozen schools commonly considered Mini-Ivy

 

[PatsGirl]

So what debt amount is considered acceptable for a four year degree to most of you? I was thinking nothing more than $40K total, hopefully less. Assuming a student is majoring in a field that has lucrative positions and they are ambitious and hard-working, I think that amount can be paid back in less than 10 years. Actually, given the right budget and work ethic, maybe half that. DD has been told that when all the packages arrive, loans will be her responsibility and neither of us will co-sign any more than $10K a year, and her choices would be limited to the loan and what her father and I each decide to contribute.