<p>I get really mixed feelings regarding the amount of debt one should take on for college. We had nothing saved but with parent borrowing , scholarship and student loans we have made it through three years of a BFA musical theatre program. Paying for the BFA training put a huge cloud over our family and with the down turn in the economy we are very concerned about being able to borrow for senior year but do we regret the sacrifice we are making NO WAY and our student will owe $14,000 upon graduation and we will have borowed $70,000.of which we will still owe half. A BFA is now around $52,000. Are we crazy, on paper yes but seeing the results No. The bottom line was the opportunity for an excellent musical theatre education .Our student has changed enormously benefitting from the intense training and it is obvious that when performing its the most natural place to be. So maybe take the risk , you will feel guilty, stressed and stretched at times and warm and proud when they call full of beans about the life they are living at everyones expense.</p>
<p>Dieselbt,
If you borrowed 70,000 over the last three years and have repaid half already then you are in a fairly good position. If your student graduates with 14,000 in debt he/she will survive and repay it. I’m concerned for those students who are graduating with far more debt and do not have parents who can help them repay it. If you look on some of these threads these students are talking 15,000 a year in loans!</p>
<p>oops I meant to say a BFA costs 52,000 yearly</p>
<p>But it doesn’t have to.</p>
<p>This might be one reason to consider whether to go BA or BFA or non-conservatory. Or considering whether your degree can qualify to get a teaching certificate or go to graduate school.</p>
<p>All of the above are wise words. As NMR said -beware of “crushing” debt. That is the key word. Some debt for most people is probably ok. But crushing debt is another story. And as thecheckbook said it’s especially risky for those kids that don’t have parents who can/will help pay back loans. Making money at this profession, as we all know, isn’t easy. That was really brought home the last couple of weeks when S’s girlfriend got cast at a (non-Equity) company for their whole summer season. She got great roles including two leads. But the salary for 11 weeks is $1300 plus room and board. She needs to make $4,000 - 5,000 to pay for school bills this coming year so she’s agonizing over what to do.</p>
<p>dieselbt, I’m with you. We made it through the first year with only $10K in Stafford loans…next year we will likely have to borrow a bit more. I am scrimping like mad to pay for this fine conservatory education because I want to give my kid the best possible shot at her dream. She had the talent to get into the school, so how can I not make it happen for her? I plan to pay off half her debt after graduation and let her carry about $20K. Anything after graduation, like personal expenses or God forbid more education, is on her own dime. She had better hit it big by the time I need a nursing home, though!</p>
<p>Skwidjymom, how long will she have after graduation to pay that $20K off?</p>
<p>I think Stafford and Perkins Loans are for ten years.</p>
<p>What is a reasonable amount of debt for the average BFA to take on?</p>
<p>FYI as far as tax relief is concerned be aware that to use the “performing artist” deductions an actor has to have at least 2 different jobs, each paying at least $200. The $200 is not hard to reach but while in college the 2 jobs per year can be. Hopefully once out an actor will have more than 2 jobs in one year, but this year a lot of my daughter’s friends are finding that more challenging due to the economy and not easy AT ALL. Even though she made a good deal of $ for a summer stock job last summer and is still a college student my daughter was dismayed that she did not qualify due to only having one job! She was hoping to deduct travel, LaDucas, Union Dues, etc. Oh well, at least she had work!!!</p>
<p>How can we define reasonable, NMR? There’s nothing much REASONABLE about musical theatre!</p>
<p>To add to what ttmom posted about the performing artist’s needing 2 jobs of $200 each to qualify. My d was paid $200 to sing at an event close to her school. That would have qualified as one of the jobs. So keep in mind these types of paying ‘gigs’ that might qualify you for the ‘performing artist’ deductions. She ended up with 2 additional jobs for 2008(one summer, one over winter break), so she qualified without this one night gig. My point is that these are just jobs that you might forget you did by the end of the year - especially if they don’t send you a W-2 form for it.</p>
<p>Excellent point musicalmom!</p>
<p>While taxes are being discussed, I remembered that D needs to file this year for the first time in a several years. Is there some convenient reference that people know that she can use to figure out (with our help) how to deal with her taxes. Last year she had 2 “stipend” jobs and one that generated W-2s. In general we have not been good about holding on to receipts for things and husband and I have paid for stuff, but we are shifting her to taking care of this herself, but don’t really know how to advise.</p>
<p>We were told by a Director of Admissions at a “most selective” MT program last week that, instead of awarding 4 merit scholarships this year to CFA enrollees, they are only awarding 2 (which happen to be going to non-drama kids). The reason for this, according to this individual, is that they want to have more money available for “need based” aid. Okay, so this annoyed us because we do not fall into this “need” category (according to our FASFA, which, HELLO? REALLY??) but were under the impression that this school was “generous” with talent scholarships. Well, that may have been true in the past, but with the economy the way it is today, this may be changing. So, we are finding out that, financially, some of the posts regarding acceptance aid and scholarship packages 3 or 4 year ago, may not be applicable to today’s situation. Thoughts?</p>
<p>MO2, I have to stick my oar in here and defend need based aid. Without it, many kids wouldn’t be able to go to college at all, for musical theater and for other things. I know that some colleges do use non-needs-based academic and talent scholarships to entice talented kids to come to those schools, and that’s terrific. But I think it is more important for schools to help kids whose parents really really can’t pay and who wouldn’t have a prayer of going to certain schools by awarding needs-based scholarships to yes, the most talented and able of those who <em>need</em> it.</p>
<p>I agree with NMR. Colleges don’t owe anyone a scholarship. A scholarship for need based aid allows a child to attend who might not otherwise be able to. A scholarship based on merit is great to get, no question. But based on assessed need, it is not the same. Of course, some schools have combined merit and need scholarships. Funding a college education is very very difficult for most. But if someone’s FAFSA indicates NO need (even if someone does not agree with that assessment), they ought to be happy that they are in such a situation. Someone who receives need based aid is not luckier…they are not in the same “starting position” as one who does not have need based on the FAFSA formula. Kids of parents who do not qualify for need are certainly in a better position and should feel fortunate, even though college is still difficult to fund. </p>
<p>Merit aid is a gift. But without the gift, the student should be able to either afford to attend or take out loans. </p>
<p>Need based aid is required in order for some kids to even attend in the first place.</p>
<p>As hard as it may seem to you, try to rejoice that you do not fit into the need based category. Many only wish they could be in such a position.</p>
<p>I understand what MO2 is saying. A lot of these schools are $40k-$50k year with room and board ($160-200K for 4 yrs ) plus other expenses such as transportation, health fees, deodorant, shampoo, makeup, dance shoes, song books, etc etc. </p>
<p>If EFC on an income of $150k is $50k that is l/3 of a family’s income. $100k is $30k or 30% of the family income. FAFSA doesn’t take into account if you live in an area where homes avg $200k or $900k or if you are supporting an ailing family member or have other extraneous expenses or particularly important this year if you just lost your job and your income is $0. I don’t know any lender outside of student loans that would allow someone to make a purchase of 30%+ of their gross income. </p>
<p>I’ve also read on here where the EFC might be $2000 but the school presents a package expecting the parent to pay $12,000. If the EFC is $0 doesn’t that just mean you aren’t expected to contribute any out of pocket money but still are taking on debt you can’t afford? While it is true the need based student might not be going to college otherwise I think a lot of parents under the FAFSA calculations and cost of college find their student might not be going either.</p>
<p>HoosierMOM, If a family makes $150,000 and doesnt qualify based on FAFSA for need based aid, it is not like the family is expected to shell out $50K per year from college FROM CURRENT INCOME!! If you had to shell out a year’s tuition, etc. from current income, you’d have to make a LOT more money. Rather, it would be expected that the funds would either come from savings for college, some current income, and borrowing money (someone in that income bracket can afford some loans). Also, someone in that income bracket may have investments that yield some income. It would come from a mix of these funds, not just current income. We earn less money than that and did not have a college savings. But we are taking out loans and paying for it over time …the amount we owe due to FAFSA. I also would not assume that the family has to take a loan out for $50K. A family in that income bracket should be able to pay SOME of the tuition, not all and borrow SOME.</p>