<p>Hi, I want to attend U Chicago next year, but if I do attend I will have to take out around 120,000k in loans. I know loans are the devil, but I want to become an Investment Banker one day and I think U Chicago will give me the spark and push I need to become a great banker. I have also been accepted to John Hopkins and a plethora of schools in Florida. I want to get out of Florida, and I don’t know much about John Hopkins math/econ programs. But, I know JHU econ program is good, just not as good as Chicago’s. </p>
<p>Lets say if I took out roughly 30,000k in loans each year and deferred them until after graduation (while in school I plan to do internships/scholarships/ maybe run an internet business or two). And I chose to span the loans out for over 20 years. Would banks allow me to pay more than the minimum as I move up the banking latter, so for instance lets say I get hired at an excellent firm with a nice bonus would I be able to use that bonus to knock out a percentage of the remaining loan? Or would they lock me into the 20 year plan with the interest. Let me explain my question in an example, let us say that 100,000 k over 20 years is actualy 220,000k with interest. If i get a good job and a bonus lets say at year 7 could I knock out the loan without all the extra interest (13 years worth). Thanks.</p>
<p>You would need to check the terms of the loans. You can pay loans off early though sometimes there may be penalties. And you need to make sure the payments will reduce the capital amount owed and not be treated as payments in advance (funnily we were just talking about this happening to someone yesterday where they paid a chunk wanting the balance reduced but the loan company treated it as payments in advance).</p>
<p>If you borrow $30 k a year and defer them (payments and interest) until after graduation the debt then, assuming a 6.8% interest rate, the debt will have already grown to @ $142,000 by graduation. According to the loan calculators at finaid.org
[FinAid</a> | Calculators | Loan Calculator](<a href=“http://www.finaid.org/calculators/loanpayments.phtml]FinAid”>http://www.finaid.org/calculators/loanpayments.phtml)
If you pay that over 20 years you will pay almost $1100 a month and would require a salary of $130K to support the payment. Do you really think your starting salary will be $130K ?</p>
<p>If you have options that will not leave you starting your life with such horrendous debt I would seriously consider them. Good Luck.</p>
<p>Yes, I have been thinking about this a lot. My parents have agreed to help me as long as I pay them back so my loans will probably be less than 100,000k. I am just using 100,000k as the worse case scenario. I don’t want to take out a butt load of loans either but this my dream ;/.</p>
<p>I really wish these forums had an area for students like me so I could learn all the lingo, like consolidating loans, libor rates, prime rates and etc.</p>
<p>I am pretty sure you can prepay, depends on the loan company you choose.
You choose a plan with an length and monthly payment but if you pay it back early it does not eliminate all the interest. The interest still accrues on the amount outstanding.
Anyway…I agree with momof2sons…that is a LOT of debt.</p>