How do loans work?

Paying for College
1

So I’ve been thinking about going to Boston University, which as you probably know is pretty expensive. I got 40k in grants and 3k in loans… but with room and board the total tuition is 67k at this school. My parents DO NOT have the money to pay for even half of the remainder. Is there some additional loan I could get that I wouldn’t have to pay back until I graduate?

2

So the net cost of the school is $27k per year to your including loan(s). If your family can pay only $10k per year, that will leave you $17k in loan per year. That would be $68k for 4 years if you do graduate in time. This is more than double of the average college graduate loan amount. So even it you can get the additional $14k loan per year from Parent Plus or other private loan, it seems the school is not really affordable to you. Note that the interest accumulate from the time it is dispensed except for subsidized loan.

3

And are your parents willing to sign up for parent plus or other private loans? So are and others aren’t. Better to have those discussions before you get your heart set on any particular college.

4

http://talk.collegeconfidential.com/financial-aid-scholarships/1989808-how-can-i-afford-university-p1.html

Thought you were going to affordable UMN-TC. What happened?

You will be taking about $25,000 a year in loans to attend BU…

The repayment provisions are determined by the lender and the type of loan.
If your parents will take a Parent Plus Loan, I believe those payments can be deferred until graduation…but interest is not exactly rock bottom.

I have a kid who graduated from BU…and it’s a great school BUT we would NOT have cosigned or taken $25,000 a year in loans for him to attend.

5

“You will be taking about $25,000 a year in loans to attend BU…”

I am pretty sure that the total coast of BU is now a bit over $70k per year, including things like books and miscellaneous expenses. With the grant and if parents pay $10k additional per year then I don’t know if this quite adds up to $25k per year in total loans but it is very close and will probably get to this level before four years is up.

At the risk of repeating myself from other threads, this is WAY too much debt for undergrad at BU. Just forget about it and look at your other options.