Taking out Loans for School.

  1. Ok, I have a question for all of you ladies who are (currently) in college with loans, or have graduated from college and took out loans.

    Basically, I have no understanding of loans, but heres the deal.

    It is vitally important to my overall happiness that I complete my education ( around one year) out of state. I got accepted into the University that I just got from being on exchange at, and I really want to go. The problem is I will not be recieving any financial help from my parents for this one, and the cost of tuition, living, and car stuff will be around $25,000 for this last year. I understand that's a large sum of money-- and I'm apprehensive about taking out such a loan. Education is of upmost importance to me, and I plan on going to grad school at this same Universty ( where it will be less expensive once I am an official resident.)

    So, do any of you have experience with school loans? Is taking one out worth it, in your opinion? Will I be crippled by debt when I graduate??

    I'm extremely nervous about all of this, but I just really want to go to school somewhere else.

    btw, if I stay here I will graduate with less than 7,000 in loans and will finish in one year.


    I suppose I feel a little guilty and foolish for wanting this, and I'd appreciate any advice, whether about the situation or the loans!

  2. Well I'm in college first year, and in England, we all get loans regardless. So by the time I finish I'll be around £12,000 in debt. I know this isn't helpful, but it reall is up to you. Think about what you want - do you really need to go somewhere else? Or is worth the money? You're welcome to pm me if you want :smile: x
  3. Dani -
    Take the loans and go where you want to go. Student loans are by far the best deal going. The interest rate is really low and you don't have to start paying them back until 6 months after you graduate. Additionally, depending on how much you make, the government now allows for write offs on the interest.

    I graduated with very little debt, around $7k, and they gave me something like 15 years to pay it off. It was peanuts every month.
  4. Although I don't have loans from school
    SOmetiems in life you have to take the plunge and take that experience you want head on

    I say take that debt on, I cna tell you it's really not a large loan when I think about what some people spend on college and then law school and things like that. Also realize a loan that size you won't be paying off until your forty.
  5. Even though this may not be the advice you were hoping to hear...

    Wouldn't it make the most sense to just wait one year, finish where you are, then go to grad school at the place you love? It's not even a whole year since you have summer off:smile: You could even go and visit your friends and associates at the school you like a couple of times and still be way less in debt.

    Anyway, since I don't know the details -- why you want to transfer, which schools you are considering, etc. -- it's hard to really give advice. Also, what field will you go into? As a doctor, you could easily pay back the debt. As a social worker, less easily.

    My general rule of thumb, though, is that if you are going to grad school then you might as well save some money on undergrad and focus on getting into an elite graduate program. That worked well for me -- I went to a quality State university for undergrad (quite inexpensive), then to an Ivy for grad. The LAST school that you attend is the most important. In fact, it looks sort of bad to start out doing something like a Yale undergrad degree, then ending up at a mediocre grad school. Employers wonder why you went downhill rather than up.

    So, that's my general advice for now...but I'm also really cheap and debt phobic, so will be interested in seeing what everyone else thinks!
  6. The thing is, I will save money if I'm a resident when I go to grad school. I have no intentions of attending an Ivy League graduate program, as my field does not really require it.

    I am a communications major, hopefully getting my masters in Mass Comm ( helllooo Advertising.).

    I hope that helps shed a little more light.

    Also, I'm just not happy where I am right now-- for personal reasons, it's frustrating and I miss where I was terribly.
  7. hmm...

    That's a really good point about establishing residency to save on grad school tuition. And advertising is a great field, so you probably won't spend a lot of time looking for a job (unlike me! despite the good schools)

    I guess I would just take a little time to get it all figured out and don't do anything totally impulsive. A year really can go by pretty quickly. On the other hand, combined with the money you will save from grad tuition, and the happiness issue, it may be worth doing:smile:

    As lelgin said, student loans are way lower interest than credit card debts or anything.
  8. loans last forever and ever............

    sorry I'm rambling about my own situation. I'm one of the ones who took out loans. Significantly more than yours of course, but now I'm stuck paying back loans that seem to take more of a chunk out of my paycheck each month than I can really afford.

    Yes loans don't look as bad on your credit and have lower interest, but to me when it boils down to it, it still keeps me from being able to afford alot of stuff. In my situation as a social worker, I'm not making enough to not notice the loans. It sucks and I regret every second of it!
  9. I completely agree with this. I graduated with about 5k in debt from a state school before going to grad school at an ivy league. I was lucky and got a scholarship, but still spent alot of money on living expenses, so my total student debt went up alot. I have a number of friends with more than 6 figure debt and it does affect their lifestyles to a great extent despite the fact that they are all attorneys making over 125k a year, i.e. it controls their job and living choices. I have no idea what kind of salary you are looking at to start in advertising. Also, student loans are only a good deal if they are all Stafford or the like, usually at that level of borrowing, unless I'm mistaken, you'd have to take out some private loans which have variable interest rates and which should be paid off more quickly. I.e. right now I have a small private loan that I'm paying off which is actually at a higher rate then I can get on a credit card.

    You'd have to figure out how much you'd save becoming a resident first and how long that would take I guess to see if its worth it, or really to see what your real cost is, it sounds like its lower than 25k.
  10. Here are my experiences and advice for all students regarding loans. Totally go for the loans for educational purposes, but don't over-exceed and count that as expendable income. My total schooling cost $75k and I ended up paying almost 25% interest and ruining my credit trying to pay it off.

    was it worth it? yes, I would definitely do it again, HOWEVER, I would probably try to get a part time job to not have to depend on the loans as my cost of living expense, because it really is very difficult to pay them off. It took me almost 10 years to do so!
  11. I think this is the perfect time to do a cost-benefit analysis of whether or not the money you spend on out-of-state tuition will pay off in the long run. Is there any particular reason why you're planning on going straight into grad school rather than working in your field for a few years and then assessing your opportunities? Outside of your happiness, what does the other university offer that would make it worth $18K of student-loan debt?

    Though the writing is a bit sensationalist, this article on student loan debt might give you some perspective on how that additional amount could affect your choices after graduation.

    Best of luck to you in your decision.
  12. I am currently in grad school. I went to a state school and borrowed approximately 20K to fund that. Now I'm in grad school (not quite Ivy League, but a top 20 school) where my tuition is paid and I get a stipend. I am still borrowing though.
    All told, I estimate that I will be around 75K in debt when I am done.
    Was it worth it? YUP!
    In addition, although I am in school right now, I have some loans which aren't interest free while I'm in school....so I pay that interest every month (it's not a lot) because it will save my thousands in the future.
    In addition, one of my loans is consolidated and locked in at 2.5%, another at 5%, and the other one is variable right now because I'm still in school. All my loans are government...I won't borrow privately because those can be dangerous (rapidly rising interest rates, no ability to get a good consolidation rate, etc.).

    My advice to you....how much would you save by being a resident versus not taking out loans?
    If you will truly be much happier, and get a better education (and possibly a better shot at getting into that graduate school), then I say go for it.
  13. As someone who graduated with $52,000 in student loans (and believe me that's a bargain after scholarships and financial aid). Think and think again before getting student loans. It feels like free money at first...and then you get your bill, and it becomes very very real and you become very very poor.

    1. Did you apply for financial aid for that school. It's not too late to do so. Do it now!!

    2. Student loans aren't the best thing going. That's just false and insanely misleading. The interest rate is constantly going up. The standard right now is 6%, on July 1, 2006 it's jumping to 8%. If you consolidate, it lowers the interest amount, but it tacks up to 10 years on to your loan. That's hardly a good deal.

    3. Look for grants, scholarships, anything that could help with the cost.

    4. Consider what you'll be making when you graduate. Don't inflate it either. Will you be able to afford $250-400 a month in just student loans? Don't forget about interest too.

    5. To establish residency typically takes 2 years. Are you planning on living there for an additional year? Is this school better than your current school? Transferring with one year left will raise flags for grad school. Can you give the grad admission board a better reason than living out of state will make you happy? Will going to this school significantly increase your chances for getting in for grad school (not always a 100% sure thing-it's worth looking into).

    All this being said, if you're researched it and you still want it, I would say go for it. My student loan amount is high, but my God, I loved Emory University and it looks fantastic on my resume. To me it's worth it 100% even if it means a certain percentage of my paycheck goes to my student loans. Like Monablu said, look into getting a part time job. I worked 2 jobs in undergrad to help offset some of the costs (my car, my apartment, food, books, etc.).

    Good luck with whatever you choose!
  14. I'm having this problem as well... I'm going to be graduating undergrad with about 8K, but my grad school is absolutely going to cost me no less than 60K for tuition, room/board and supplies.

    i'm terrified of having that kind of debt, especially since I am an ART MAJOR. I want to be a gallery artist and professor ultimately, however my plans are not neccessarily solid. I'm almost constantly worried that if I take out so many loans, I wont have any time to have the time to grow as an independent artist post-grad before I MUST get a job in a university.

    I know i will end up taking out the loans, seeing as it is the only option, but there is much trepidation for me in doing so.
  15. Jillybean is right. You really have to think about getting those loans. 25000, is nothing compared to the 5 and 7 thousand others compared. When you get out of school, you'll be paying over 100 dollars per 10000 you take out. They give you up to 25 years to pay it off and if you pay just the minimum it ends up costing you 2xs as much. So 25000 is really 50k. You may be unhappy now, but you will be even more unhappy when you get out of school and realize you can't afford to live on your own and pay your loans. The benefit of loans is you can wait to pay it off later, but let's remember if you ever get too deep in the water after you have the loans remember this... STUDENT LOANS CANNOT BE DECLARED IN BANKRUPTCY. You use it, you pay it back.

    I'm not saying not get on, but you better be sure that you have look at all your alternatives. If you are determined to go to school, I would take out the least minimum loan and work. I would reevaluate your budget and find things that you can pay for by working. Many people see fit to say 'Oh I'm in school, I can't work', but if you're determined, you do what you have to do.