Full Pay Parent Needs Loan Advice

<p>Our CSS results indicate we do not qualify for financial aid (small business owner).</p>

<p>However, we DO NOT have $5,000 per month to pay for UChicago.</p>

<p>So, looking into private loans...... </p>

<p>Any advice or experience?</p>

<p>Your heloc would be the lowest cost source of funding.</p>

<p>I hate to say this but if you don’t qualify for any financial aid and expect to finance the majority of Chicago’s education with loans you might want to reconsider going there… It’s essentially a quarter of a million dollar investment. If you’re asking for advice, I would say think about the repercussions of having so much debt, and how that will factor into your future plans.</p>

<p>If you cannot afford 5k per month now, how will you afford the loan repayment options over time? This amount is a second mortgage. I think you need to reconsider before going into so much debt. Unless your small business is expected to be very profitable in the near future. To be honest, the thought of 5K per month for any college education, makes me choke, especially with the state of the economy and you being a small business owner.</p>

<p>We budgeted for $30k/yr (not $60k).
Loans are repaid over 10+ years; our son will assist with repayment. </p>

<p>We could’ve chose UCLA (roughly 1/2 the cost), however there is no comparison in terms of job opportunities upon graduation, particularly in Economics.</p>

<p>It’s really up to whether or not you can afford it.</p>

<p>From someone who’s in a similar position (accepted chicago with no FA, LA[and Cal which is the actual alternative for me, and interested at econ in Chicago) i would suggest going to LA. The reality is that you can’t expect your to make a load of money because you studied econ at uchicago. UCLA is in a hub of industry and the difference truly isn’t certain to be enough to make up for the massive debt you would have to go into.</p>

<p>That being said, I hope you’re in a position to choose UChicago, it’s a magical place and I have nothing but warm and fuzzy feelings for it.</p>

<p>I went through the same situation, but without the loan: my parents tapped into my younger sister’s med school tuition. They were a bit disgruntled because they would rather have a doctor than a banker, but I digress.</p>

<p>If your son is interested in ibanking/consulting, UofC is a fine choice. HYPS + Wharton and other top privates are also great choices, so if you get in and get FA from those schools, I would consider those places too. UCLA and Cal are on a completely different tier when it comes to job recruiting for econ/business majors. </p>

<p>The saying typically goes that aspiring doctors and lawyers should go to public school because they have to go to grad school ANYWAY and GPA/MCAT/LSAT are more important than the institution attended, while those interested in business/finance should go to top private schools because they do NOT necessarily have to go to grad school and name brand is more important.</p>

<p>(The Banker) Thanks for the insight, that’s what we’ve been told so far, that Grad school isn’t necessarily required with a UChicago Econ degree.</p>

<p>We’ve also been told that UChicago Econ graduates are highly sought after.</p>

<p>We planned to spend $150k for college. UChicago will cost us an additional $120k.</p>

<p>There’s always the possibility of changing majors and the new one not being the kind that would generate enough income to pay for the loans comfortably (at least in the short term) or require a very expensive graduate school (medical, dental, law) that would add enormous amounts to the debt.</p>

<p>Of all the talk about college admissions being a crapshoot, paying an extra 120k on the chance he does well and gets a lucrative job offer, seems risky. Your choice. But UCLA is not like some unknown LAC with a prof or two. Does your son want to be a banker? Or an economist? Have you looked at the monthly payment expectations on a 120k debt? And how interest accrues?</p>