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swimcatsmom · 04-08-2008, 02:40 PM

Back to the OP.

taythetenor:Are you talking $40k a year in loans? However much you love the program do not take out $40k a year in loans. How are you going to pay the interest each year while you are in school? At 7% you will hve to pay $2800 in interest the 1st year, $5600 the 2nd year, $8400 the 3rd year and $11200 the 4th year and will owe $160,000 at the end of 4 years. You will then have to make loan payments of $1800+ a month for ten years or $1250 for 20 years. Are you guaranteed the income needed to make such payments from the day you graduate? ($150k to over $200K).

If you capitalize the interest (add it to the debt) you will be paying interest on the interest and the debt will have grown to over $190,000 by the time you graduate. Yes it is insanity to do this - Your 4 year dream could become a 20 year nightmare where every choice you make is governed by whether you can afford to pay your monthly loan payment and afford to eat and have somewhere to sleep.

04-08-2008, 02:40 PM	#17
swimcatsmom Senior Member Join Date: Apr 2006 Threads: 67 Posts: 2,579	Back to the OP. taythetenor:Are you talking $40k a year in loans? However much you love the program do not take out $40k a year in loans. How are you going to pay the interest each year while you are in school? At 7% you will hve to pay $2800 in interest the 1st year, $5600 the 2nd year, $8400 the 3rd year and $11200 the 4th year and will owe $160,000 at the end of 4 years. You will then have to make loan payments of $1800+ a month for ten years or $1250 for 20 years. Are you guaranteed the income needed to make such payments from the day you graduate? ($150k to over $200K). If you capitalize the interest (add it to the debt) you will be paying interest on the interest and the debt will have grown to over $190,000 by the time you graduate. Yes it is insanity to do this - Your 4 year dream could become a 20 year nightmare where every choice you make is governed by whether you can afford to pay your monthly loan payment and afford to eat and have somewhere to sleep. Last edited by swimcatsmom : 04-08-2008 at 02:46 PM.