How much debt is worth it?

fireandrain
Fri, 20 Apr 2012 11:58:09 +0000

Are your parents paying for your brother’s education? After your freshman year, those payments will go away, so your parents can now devote that money to your education. In fact, if your brother is getting FA from USC, that amount should increase next year.

While your personal EFC will increase, your parents’ total contribution should stay the same. So, if your EFC is $10,000 and your brother’s is $10,000, your parents will pay $20,000 next year for both of you. When your brother graduates, your EFC becomes $20,000, but your parents are still paying $20,000, but just for you now.

In general, rule of thumb is that a reasonable amount of debt is the federal maximum, which is about $27,000 total for four years.

ETA: have you talked to your parents about how much they are willing to pay/borrow?