<p>How? I really need help!</p>
<p>per year- where is this college?
my house didn’t cost that much- what could they possibly teach you that is worth that up front?
</p>
<p>I’m guessing they meant $220,000 total, which is $55,000 per year for four years. That’s a lot of money, I would start filling out scholarship applications now or applying to some financial safeties.</p>
<p>you could win the lottery.
you could rob a bank.
Or you could try to win “america’s got talent.”
Or sell 220000 glasses of lemonade.</p>
<p>The world is full of oppurtunities!!</p>
<p>(Ok,dont mind me, I myself am trying to figure this question out).</p>
<p>Ah, the business that colleges have become today. Gotta love it. They are laughing all the way to the bank. <strong>kaching</strong></p>
<p>What you do is become more realistic and apply to colleges that are within your financial means. Nobody is “entitled” to go to a school that costs that much.</p>
<p>Agree with 3bm - if you will not qualify for financial aid to help pay the tuition/fees then you must apply to schools that are more within a price range you can afford. There are plenty of schools that will not cost you anything like $220,000. </p>
<p>Do not even think of trying to borrow such a huge sum of money as you will be saddled with enormous repayments. On $220k @ 8% you would be paying @ $2700 a month every month for 10 years which would require your starting salary to be over $300,000 a year to make it easily affordable. And that is assuming you paid the interest every year while you were in college - if not the interest will be capitalized (added to the debt and interest charged on the interest) making your debt grow by around $25,000 before you even start paying it and increasing your monthly payments to @ $3,000.</p>
<p>You do not have to go to such an expensive school. Look for realistic options.</p>
<p>Ahh.once again the voice of wisdom from swimcatsmom. thank you! I see plenty of young adults saddled with huge student loan debts which will never be forgiven, even if the student declares bankruptcy…
No one ever tells these kids what the MONTHLY payment will be and how much they will really be paying for how long.</p>
<p>There is an article on cnn.com about students that flee the country permanently because of their student debts. The main student in the story had a masters in Music and a student loan of $160,000 when he graduated. he thought he would be able manage the payments because he figured they would be $600 a month. $600 a month for a $160K loan!!! Perhaps the very last class of HS or the very first of college needs to be a mandatory one on understanding basic finances. and no student should be allowed to take out any student loan without thorough counseling - not the online thing that they do where they say they understand they have to repay it but one where someone spells out **loudly **and **clearly **</p>
<p>THE REPAYMENTS ON AN 8% $160,000 LOAN WILL BE AT LEAST $2,000 A MONTH EVERY MONTH FOR 10 YEARS. YOU WILL NEED TO START OF EARNING AROUND $233,000 A YEAR TO BE ABLE TO PAY THIS COMFORTABLY. THIS WILL BE AN ENORMOUS WEIGHT AROUND YOUR NECK UNTIL YOU ARE IN YOUR 30s AND POSSIBLY LONGER. YOU WILL NOT BE ABLE TO AFFORD TO BUY OR RENT A DECENT HOME, BUY A CAR, GET MARRIED, HAVE A FAMILY, GO ON VACATION, OR POSSIBLY EAT. OVER 10 YEARS YOU WILL PAY NEARLY $73,OOO IN INTEREST ON THIS LOAN MAKING YOUR TOTAL REPAYMENTS @ $233,000.</p>
<p>In response to>> sell 220000 glasses of lemonade.</p>
<p>You are not taking into consideration the price of sugar, water, lemons, cups, and advertising material.</p>
<p>My calculations show me that his fixed cost (lemonade stand, posters, etc) would be less than $50.
The variable cost (sugar,water, lemon, glasses) would be $1 maximum (less for bulk purchases).</p>
<p>He could sell them for 2$ each and thus collect his $220000.</p>
<p>As he needs around $55000 per year, all he needs to do is sell 150 glasses a day for every day of the year.</p>
<p>TOUCHE, i forgot to factor in the inflation of prices. Which would explain why lemonade costs 2 dollars and is tolerated at that price.</p>
<p>Swimcatsmom–while I certainly don’t disagree with how foolish that type of loan can be, I disagree that one would need a 233,000 salary to “comfortably” pay it off. I’m guessing that comes from the idea that loans should be only a certain percent of one’s salary. But the flaw in that is to assume that one’s level of living needs to go up as one’s loan burden goes up. To pay that off, what one actually needs is, above and beyond what one needs to live, an additional 24,000 plus the taxes that one would pay on that additional amount. So, for instance, if one was living on 70K (still above the median), then maybe 30/40K more (admittedly not chump change) would cover the loan.</p>
<p>Please understand that I’m not disagreeing with you, but I think it’s important to use numbers that won’t be easily refuted. I understand where the 233K is coming from, but I question the premise it is based on.</p>
<p>Garland - No problem. I probably should have pointed out, as I usually do, that I get the numbers from the loan calculator at finaid.com
[FinAid</a> | Calculators | Loan Calculator](<a href=“http://www.finaid.org/calculators/loanpayments.phtml]FinAid”>http://www.finaid.org/calculators/loanpayments.phtml)
who do base it on a debt/income ratio - they come up with the recommended salary as follows
.</p>
<p>Part of the reason our economic situation is the way it is today is because people have been completely unrealistic about debt ratios. Your mortgage or rent should be 25% of our gross monthly income and, as swimcatsmom posts, 10% should be figured for repaying student loans.
Increasing the ratios increases your chances that you will not be able to keep up with payments and will end up in financial trouble.
When you are, please don’t ask me to bail you out. Been there done that.</p>
<p>SCM–thanks. I did figure it was from a calculator along those lines. My point still is, it seems fine to say that on should avoid more than 10% of your income for student loans, but turning it around, saying–whatever your yearly payout, you must make 10 times that, seems counter-intuitive. 233K leaves 200Kfor the rest of one’s life–surely no one needs that in order to be paying off 24k/yr loans. You don’t need to be more affluent post-loan payment, is my point here. You do need, though, to *get *how much of your income will go to those loans.</p>
<p>Don’t forget that students are borrowing more & more in unsubsidized loans. They aren’t paying the interest during school & the grace period … and it continues to accumulate during the repayment period … leading to a ridiculously large amount of interest owed on what <em>seems</em> to be a relatively manageable loan amount. The loan calculators often are for subsidized loans. </p>
<p>OP, are you planning to attend a school that costs over $50k per year without any guaranteed financial assistance other than loans? If so, I assume your parents must earn a lot, yet are unwilling to help you pay for school. If they don’t really make all that much, perhaps you would actually be eligible for more aid than you think. You might want to talk to a financial aid officer at the school to find out what things might look like for you. The bottom line is, though, that you need to VERY SERIOUSLY consider what it means to take on as much debt as you asked about. Personally, I would advise you to look into other, more affordable schools. If you can get into a $50k/year school, you can most likely find an excellent school where you could get merit money.</p>
<p>Swimscats mom - "THE REPAYMENTS ON AN 8% $160,000 LOAN WILL BE AT LEAST $2,000 A MONTH EVERY MONTH FOR 10 YEARS. YOU WILL NEED TO START OF EARNING AROUND $233,000 A YEAR TO BE ABLE TO PAY THIS COMFORTABLY. "</p>
<p>Also unrealistic— parents with only a little better than 1/2 that income meeting an EFC of 40 to 45K annually.</p>
<p>See post #14. The figures are based on the finaid.com loan calculators premiss that loan payments should not exceed 10% of a person’s income.</p>
<p>I am going to reword my post as the fixation on the recommended salary (which i did not pull out of the air but which were based finaid.org - a source I trust) seems to detract from the point of my message which is that students need to receive better counselling so that they do not somehow end up with $160k+ in debt and think that their payments will only be $600 a month.</p>
<p>There is an article on cnn.com about students that flee the country permanently because of their student debts. The main student in the story had a masters in Music and a student loan of $160,000 when he graduated. he thought he would be able manage the payments because he figured they would be $600 a month. $600 a month for a $160K loan!!! Perhaps the very last class of HS or the very first of college needs to be a mandatory one on understanding basic finances. and no student should be allowed to take out any student loan without thorough counseling - not the online thing that they do where they say they understand they have to repay it but one where someone spells out loudly and clearly</p>
<p>THE REPAYMENTS ON AN 8% $160,000 LOAN WILL BE AT LEAST $2,000 A MONTH EVERY MONTH FOR 10 YEARS. THIS WILL BE AN ENORMOUS WEIGHT AROUND YOUR NECK UNTIL YOU ARE IN YOUR 30s AND POSSIBLY LONGER. THESE REPAYMENTS WILL BE DUE AT THIS LEVEL ALMOST AS SOON AS YOU GRADUATE COLLEGE SO UNLESS YOU START YOUR WORKING LIFE WITH A VERY HIGH SALARY YOU MAY NOT BE ABLE TO AFFORD TO BUY OR RENT A DECENT HOME, BUY A CAR, GET MARRIED, HAVE A FAMILY, GO ON VACATION, OR POSSIBLY EAT. OVER 10 YEARS YOU WILL PAY NEARLY $73,OOO IN INTEREST ON THIS LOAN MAKING YOUR TOTAL REPAYMENTS @ $233,000.</p>
<p>According to the loan calculator at finaid.com the recommended annual income to comfortably make these loan repayments is around $233,000. This is based on an assumption
</p>