How Much is Too Much?

calmom
Fri, 30 Mar 2007 05:05:18 +0000

Why would they expect me to pay more in the later years?

Because the maximum amount of Stafford loans increases from year to year – I think it is now $3500 for freshman year, $4500 sophomore year, and $5500 each year after that. So it is likely that your school will expect you to take the maximum loan, and tack that on to the loan amount each year.

Also, the financial aid system expects students to contribute a greater amount of their own summer earnings in later years.

Also, am I supposed to settle for an utterly mediocre state school rather than choose a much better school?

You need to go where you can afford to go.

So basically, is the better education and the opportunity to live in a bigger city and start a new life not worth the money?

If you want your “new life” to one that is burdened by crushing debt that you cannot discharge in bankruptcy and can’t possibly pay off for years and years to come, if you want to spend your “new life” living under near-poverty conditions because you can’t afford a new car or a nice apartment on your salary and with your loan payments, and if you want to defer marriage and raising a family of your own until you are about 40 because of your debt… well yeah, go for the opportunity to live in a bigger city.

You know, if it is a “big city” you want – I have a suggestion: take a gap year and get a job in a big city for that year. During the year you can research financial aid opportunities and apply to colleges that might be more likely to give you good financial aid and improve your options.

Or you can start college in your state and try to transfer in a year or two. Or complete college in your state, and then move to a city of your choice after graduation to find work.