<p>I’m still deciding between Indiana University and The Ohio State University and the instate/out of state estimated total cost is rather outstanding. When talking to my friends and family, there are mixed opinions on what exactly is “a lot” of debt/money.</p>
<p>For instance, Friend 1 ended up with about being 10k in debt per year at her college of choice and was complaining about how she’d never make that up. Meanwhile, I am looking at 20k of debt per year if it was out of state. Then again, Friend 2 receive no financial aid and will be looking at almost 50k in debt per year. </p>
<p>I am well aware that the amount of money depends on how much the household income is and such, but what- in your opinion- would be considered " a lot " of money? Does the number flux between “good” and “bad” areas? (debt=bad, grants/scholarships/finaid package= good) What would you consider a “good amount” of money from financial aid/grants/scholarships? Or at what amount would you say you’d stop so the debt doesn’t pile on?</p>
<p>All while being realistic and assuming that a full ride scholarship is not happening (which is the case for most of us, I’d assume). I say realistically because yes, graduating or finishing a year of college with absolutely no debt is possible, but not likely for most cases.</p>
<p>$10K debt per year is high, but not impossible – but your friend is right to complain. It’s going to be tough to pay it off and may limit her lifestyle and choice after college. $20K per year, in my opinion, is way too much for undergrad – if you are saying that is what you would pay for out-of-state but it will cost you significantly less to stay in-state, then you really don’t have a choice. Your friend who is looking at $50K/year for college is really living a fantasy right now – that debt isn’t sustainable and that friend is likely to drop out of college after the first year because of inability to finance the 2nd year.</p>
<p>*Friend 1 ended up with about being 10k in debt per year at her college of choice and was complaining about how she’d never make that up. Meanwhile, I am looking at 20k of debt per year if it was out of state. Then again, Friend 2 receive no financial aid and will be looking at almost 50k in debt per year. *</p>
<p>$10k of debt per year is high, but might be manageable if going into a high-paying career.</p>
<p>$20k per year is tooooo much. That amount of undergrad debt ($80k) will seriously hurt your young adult life and make it very painful. </p>
<p>The payments would be about $900 per month…like 3 extra car payments. I doubt you know anyone in their 20’s/early 30’s that can afford 3 extra car payments each month for 10 long years…in addition to all of his normal living expenses.</p>
<p>$50k per year in debt is outright crazy insane. No question about that. that person’s life will be very, very negatively affected (probably ruined) unless he wins the lottery or some other miracle happens.</p>
<p>What are your future plans? What is your major and future career?</p>
<p>One way to help yourself with this comparison is to convert all the figures to monthly payments. So instead of using someone’s else’s metric (e.g., borrowing 10k per year) that is designed expressly to avoid the issue of what life after college will be like with that debt, follow mom2collegekids’ example and do the hardly difficult work of calling it what it really is: a 10 year long commitment to pay $XXX per month aftrer college.</p>
<p>That might provide additional information about whether YOU think that debt load might be too much directly from one of the two bodily organs we all use when looking at debt: one’s stomach.</p>
<p>Did you receive any scholarship money from either school? If you are instate for IU, they offer excellent scholarship money. I am an Indiana resident with a senior who applied to IU (financial safety), OSU and a top 20 school (ED). If she hadn’t gotten into her ED school, OSU was 2nd choice. However, the IU scholarship money would have been impossible to pass up and I’m sure she would have ended up at IU for that very reason. Even without the scholarship money, IU instate is nearly 1/2 the cost of going OOS to OSU.</p>
<p>Some of these threads confuse me because many times it isn’t clear who is actually taking on the debt. In my opinion, if you are taking on $5500 in unsubsidized staffords and your parents are taking on the rest then I see that differently than you taking on the full debt yourself. Is your friend paying back the $50k/year by herself? My daughter is going to have unsubsidized loans each year so she has some skin in the game and we are picking up the rest of the tab. However, as much as I love OSU (I’m an OSU alum) I don’t think the extra debt is worth it for you/your family unless you are making up some of it with scholarship money and maybe not even then.</p>
<p>If you know your aid packages and can post approximately how much you will be paying in each scenario I think that would be more helpful to people who might want to respond.</p>
<p>The folks at FinAid.org have designed a number of calculators that can help you estimate your loan re-payment schedule, or evaluate different financial aid offers. This one is my current favorite: [FinAid</a> | Calculators | Advanced Award Letter Comparison Tool](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid) Run all of the numbers through it and see what you think.</p>
<p>The general consensus here is that the Stafford Loan maximum for four years is do-able for most college graduates. If you are definitely headed into a well-paying career immediately out of college, something in the range of 40k might not be too painful. Anything over 50k is clearly in the pain level. This means that the 80k you are talking about for yourself is well beyond what most of us would consider manageable.</p>
<p>The other factor that you need to consider is that the only loans your are guaranteed to qualify for are the Staffords, because anyone who can file the FAFSA can get them. You would need a co-signer for private loans beyond that. Have you identified a co-signer who is willing and able to co-sign with you? What is your plan for paying for years two, three, and/or four if your co-signer isn’t able and willing to qualify then?</p>
Marketing Major and still thinking about a double major or a minor in International Business.</p>
<p>
I am the opposite of your daughter in that I am an Ohio resident and the out of state for Indiana is… expensive. I received a total financial aid package of about $11,000 from both schools. So in short, OSU is still a lot cheaper.</p>
<p>I myself would probably be the one in debt rather than more debt toward my family because I have another sibling who will also be entering college at the same time as me.</p>
<p>I see that I still have a lot more to do research wise and hope/apply for more scholarships. So anything less than $10k of debt per year would be ideal? As for Friend 2 with almost $50k in debt, I have yet to hear back from her situation, but I doubt that amount of outstanding debt will happen…</p>
<p>Anything less than the Stafford Loan maximum would be ideal. Anything more than that is entering increasing realms of pain. If you can’t attend even your own home-state public for less than 10k in debt each year (remember, you will need co-signers for anything over and above the Staffords), you may want to consider starting out at a community college that you can commute to.</p>
<p>I, too, look at the Stafford limits as maximums a student should borrow. That really is all you can borrow most of the time without getting a cosigner to your loan. If that’s the case, the terms for the PLUS are often preferable. Your cosigner is on the hook for those loans when s/he signs and it goes on the person’s credit record so it’ s as though s/he took out the loan. If that person is a parent, s/he might as well go the route of PLUS.</p>
<p>The Stafford amounts are the MOST you should borrow…especially with those majors.</p>
<p>Those amounts are…</p>
<p>Frosh 5500
soph 6500
jr 7500
sr 7500</p>
<p>To borrow more than those amounts is dangerous…AND would require parent co-signers. If your parents won’t co-sign then the answer is moot…you’ll have to go where it’s affordable.</p>
<p>Either way…you really need to go to OSU…debt for IU is just not justifiable. Not at all.</p>