<p>The University of Notre Dame is my dream school followed by UVA as second. Both cost a lot of money and I will most likely not demonstrate any financial need. My parents will contriute around 25,000 a year. That said I would need another $25,000 a year for Notre Dame and $10,000 for UVA. I have applied for outside scholarships and even played the lottery. Any opinions on the effect of taking out that much money in loans or any ideas? Thank you so much.</p>
<p>I’m in the same boat but for USC (parents will contribute $25K a year as well)</p>
<p>Don’t forget that there will be interest so you won’t be owing $100K after your 4 years of education. I’m not sure if all loans have continuous interest or not, but if they do, the interest will really add up and might even surpass the amount you originally owe. (I haven’t really calculated the costs so I’m not exactly positive on that though)</p>
<p>Let’s say we get out of school and get a job with a starting salary of $60K. Take out the tax and that’s only going to be like $30somethingK… it would take a long time to pay it all back in addition to all of the living expenses.</p>
<p>It’s a scary thought to be that much in debt and I’m guessing most will say don’t do it. But I would like to hear opinions, advice, and ideas from others as well.</p>
<p>You probably won’t be allowed to borrow $100K all on your own. I hope you have some merit scholarship schools in your mix - because that can make the difference between that $25K that your parents generously offered and the $45K most private schools cost.</p>
<p>Go to finaid.com and use the calculators there to get a real feeling of what various sized loans mean.
<a href=“http://www.finaid.org/calculators/[/url]”>http://www.finaid.org/calculators/</a></p>
<p>For instance, on a $100,000 student loan (assuming you could get one), paid back in 10 years (which would be almost impossible) you would end up paying back about $138,096.57, with a monthly payment of $1,150.80.</p>
<p>Also try to be realistic about your starting salary. $60K would be highly unusual.</p>
<p>I understand that my parents would have to sign off on loans totaling that much money. I just do not know the effect of paying 1,150 a month. I feel I can not accurately predict what a loan like that would be for I am only 18. Any other opinions?</p>
<p>Actually you can estimate how it will feel. </p>
<p>Take a stab at your entry level salary. (Look online to get averages for whatever career you might end up in.) </p>
<p>Estimate your take home per month. </p>
<p>Then subtract rent, car payments, car insurance, car maintenance, health insurance, food, and necessities like clothes or whatever. (Obviously you have to make educated guesses here.) </p>
<p>Then see what you have “left over.” Can you make that loan payment and not suffer unduly? (Remember your calculation included NO fun money, no trips, no movies…) </p>
<p>But here’s the harder question - can you make that payment when you are 30? Will you have kids then? Will you have a mortgage? (How will you save for a down payment for a house)?</p>
<p>Maybe you’ll make the calculations and decide you can do it! But when you buy very expensive stuff, it always behooves one to figure out if they can afford it or not.</p>
<p>Good luck!</p>