How much debt is worth it?

modestmelody
Fri, 20 Apr 2012 11:40:14 +0000

In-state at UMichigan is around 25k. Brown is around 50k. Assuming you’re getting some aid (since your EFC has already impacted your first year financing) and assuming that your parents were willing to pay the $25k stated, you’re talking probably somewhere along the order of $60-70k in debt. That’s a fairly big amount.

If you didn’t have to take on any private loans (all grant from Brown, Stafford sub and unsub, etc), I would say that it’s worth it personally. My gf and I live together and she had about that much debt (although hers was almost entirely from the year of grad school at Brown), and she doesn’t regret it at all even if it is somewhat of a burden.

Based on your expected concentration, I doubt it would apply, but remember that using IBR your payments are lowered and if you work in certain public service sectors you can be forgiven after 10 years of all outstanding federal loans. Again, my gf is planning on doing this (since we both work in education policy) and it will cut her total payments in half.