<p>Okay, so lets say I do decide to attend NYU on the crazy loans they are offering my parents of $26,000. How does it work? Do they start paying them off every month? Do they pay them off after I graduate? How much would it be per month? </p>
<p>Our only source of income is my dad’s unemployment checks, my brother’s social security checks, and our food stamps. This is definitely a big problem but I was expecting more money from NYU. </p>
<p>I have about a 70/30 opinion ratio. 70% of the people I ask suggest that I just go for it and go deeply in debt and just take the change. 30% of the people suggest that I don’t. </p>
<p>My major is Cinema Studies at Tisch. I am pursuing a career as a film director, if that helps.</p>
<p>I don’t think any college is worth $26k/year loans if you’re on unemployment and social security checks… Do you have other options? Is NYU your best bet or has any other college offered more financial aid/possibly full ride?</p>
<p>My other option is UT, but Tisch has a better film program and so many more opportunities. I am a finalist for the Terry scholarship which is all expenses paid and my interview is April 12th.</p>
<p>(1) You’re trying to assume… (Factoring in the inflation in tuition…) $115,000 worth of debt for your parents, who have no income. Loans are paid off either while you’re in school or after you graduate. Most loans are for 10 year periods. Including the 7% interest… Their monthly payment should be around… $1,100-$1,200/mo. ($13,200-$14,400/yr). Can your parents afford to pay that on their income? </p>
<p>(2) Please read:
“The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.”</p>
<p>Why is this important? Let’s say your parents DO qualify for a loan your first year. However, eventually, with such a low income, they will run out of borrowing power. (Banks won’t give them anymore money because their debt to income ratio is too high). This means that YOU now have to apply for your own loans and assume the debt yourself. Are you willing to do this? The scenario could also break down into: They DO NOT qualify for any loans for all 4 years and YOU must assume all the approximately $115,000 worth of debt.</p>
<p>(3) If I were in your situation, I would not go to NYU unless it was substantially cheaper. The cost of attendance versus the potential expected income is astronomical.</p>
<p>The parent plus loans payments can be deferred till after you graduate as long as you are in school at least 1/2 time. But it is unreasonable to expect your parents to take this kind of debt when your dad is unemployed and your family relies on food stamps. I understand your desire to go to NYU, but that is a lot of debt for your family. If you get that scholarship then, everything would be ok.
Think seriously and with a level head about this.</p>
<p>Yeah, you guys are totally right. I hope that maybe something arises from here until May. If not, then it’ll just be a total dream. Thank you for your advice, guys!</p>