Is It Worth It? Indiana University Bloomington

[SoCal18]

That is the website I used to calculate my loans. However, those numbers depend entirely on where you living and personal expenses. I've priced apartments in Indiana, Connecticut, Illinois, and California...and I still think it can be done.

But in a few months I will have every bit of information I need to make my decision. And if I think SDSU is my best option then I'll go there, if its Portland, Indiana, Miami....I'll go there.

Thanks again for all of the help.

[OaksMom]

SoCal18...I don't think anyone has suggested this...SDSU for undergraduate...keep your payments low, be closer to home and intern/work over the summers (those frat fees are going to take up that $3500 you plan on making each summer by the way) and then head to IU for a masters degree. Could that be an option?

[SoCal18]

OaksMom that could definitely be an option if I end up choosing SDSU. I understand 60k in loans is a lot, and when it comes down to it I may choose to go to SDSU, but I'll just have to wait and see until the time comes. But I just wanted to add that actually being in a fraternity is cheaper than living on campus. Housing/Room+Board/Fees is roughly 6k a year. At SDSU for housing/room+board it is easily 10k a year. So I would actually save money.

[IllinoisMom2006]

My IU son also thought that living in a frat would be cheaper than the dorms. That is, until he found out that the one he was considering was over $10K per year. What are you basing your frat cost figures on?

[DespSeekPhd]

According to the site with the calculator:
"This loan calculator assumes that the interest rate remains constant throughout the life of the loan. The Federal Stafford Loan has a fixed interest rate of 6.8% and the Federal PLUS loan has a fixed rate of 8.5%. (Perkins loans have a fixed interest rate of 5%.)"

This will not be your scenario, since much of your debt will be from private loans. If you take the maximum in Stafford loans, the Stafford loan payment will be $207.18/month. Plus, the Stafford loan rate is not always 6.8% - it locks in at whatever the rate is when you sign the papers. Currently, the rate is actually 7.14%.

Now add in your private loan payment, which will be likely charged at approximately the PLUS loan rate of 8.6% (and is variable). That monthly payment will be $582.73.

Ah, but then you get to this part: "These results assume that the student is paying the interest charges on any unsubsidized loans and is not capitalizing the interest while in school. If the student is capitalizing the interest, the cumulative payments and total interest charges will be higher than shown here."

So you really need to figure your loans at a 14 year term to account for while you are in school. Add in the extra interest, and you're at about $1000/month in loans. That is far, far too much - even at your average salary of $52,000/year.

Don't bet on getting a Perkins loan. Those are only for people with a very low EFC. If your parents are able to contribute as much as you say, plus including your college account, you will likely not qualify.

[SoCal18]

When I did the loan calculator for the private loans I converted it to 8.6% interest.

And IllinoisMom2006, you mentioned SDSU in your posts, so I looked at the figures for the typical frat at SDSU, which is 3,000 per semester.

[mom60]

Did you apply EA to Miami?

[SoCal18]

Yeah I did.

[DespSeekPhd]

Yes, but did you capitalize all the interest? Also, as I said, you are not likely to qualify for Perkins loans, which adds to your private loan amount. As I said, it figures to about $1000/month in loan payments. That is far too much to take on.

Out of curiosity, what do your parents say about all of this? You would need them to cosign your private loans. Have you discussed the monthly amount, etc. with them?

[momfromme]

Make sure you figure out how much you'll have in take home pay -- i.e., after you've paid federal and state income tax, FICA, health insurance and something toward your 401-K. Then what will you need for basic costs -- housing, heat, groceries, electricity, clothes, dry cleaners, transportation? Keep in mind that with these expenses, you haven't yet spent a dime on having fun. I'm sure you want some good times.

$800-$1000 a month is A LOT on top of basic living expenses. It will squeeze your life style and limit your options.

That said, this is premature. As long as you've applied to a range of schools, you can see where you get in and what your actual costs will be and then you have a more informed basis of decision.

[SoCal18]

Well let's not argue anymore about the loan amount, since I'm still unsure of how much it will actually be. I estimated $800 month, but we'll just have to wait and see.

And my parents think that I shouldn't take out any loans. They think I should just go to SDSU. But they want me to stay in California so even if IU was free they would still recommend SDSU.

But in the end, they know it's my decision, and if I'm confident about IU when May 1st rolls around, I'm sure they will let me go there.

Anyways, I've reached a middle ground. Since the cost-of-living difference between the Midwest and California is roughly $500, that is my max monthly payment I will take. So if SDSU was free and IU was $800/month, then I would go to SDSU. But I'm going to pray that IU works out for me...but if not...I'll just make sure to have an amazing time at SDSU.

Thanks for the help.

[IllinoisMom2006]

I was speaking of how much one IU frat costs per year. $3K per semester for an SDSU frat sounds very reasonable. Make sure that figure includes room, meals, and dues/fees.

[B05T0N]

SoCal, for what it's worth, I thought I had the perfect school. My 'IU'. I thought the same way about my school as you do about IU. That was, until I attended. I hated it and just left the school I thought was the perfect school. I realized, in retrospect, that I shouldve visited IU and in which case, I likely wouldve attended. Just remember that no school is perfect and what you hear and see might not be the whole story.

[Worried Student]

Socal- here's a possible compromise. Go to SDSU for 2 years and then apply to transfer to IU. Even if you like SDSU, you'll still have the option of transferring. You will also know where you stand as far as your GPA is concerned. You will be applying directly for admittance into the business school and will not have to risk paying 2 years of out state tuition on the chance that you might get into the business school. Most business schools at flagship state universities have weed out classes because their business programs are so impacted. This usually includes two accounting classes and at least one calculus course. Often, these courses are not curved and you'll have to bust your butt to get a B or a C - and even then, that might not be enough to get you in the program.

I would also suggest applying to Arizona/ASU. The out of state tuition at these schools is much lower and your travel expenses will be significantly less. You will experience the same school spirit, party scene, large greek system, big time sports programs, etc. Both schools also have very good business programs. You may also have a better chance of getting a scholarship at these schools.

[younghoss]

Just a comment on the "Greek system" in general. Those who have not attended college yet often know only what they've seen in movies, tv, etc. They would make one believe that all college males belong to one frat or another. This error often makes a person overestimate the popularity and perhaps value of a frat. At ASU, where the previous poster suggested has a "large Greek system" only about 7% of male students there are members of a frat. At Sdsu, about 11% of males participate. Not trying to say a frat is bad, or is useless, also not saying it is great. Just pointing out that the membership is not nearly as large as a young person might think. I'd recommend you carefully weigh the aspects of joining before you decide you want in. Look at it this way- at SDSU, 89% chose NOT to participate.