<p>lockn,
You have to pay taxes on bonus money.</p>
<p>Lockn and BMW: I think your thinking is a little irrational. I mean no school is worth 200k, not even Harvard.</p>
<p>I’m planning on going to a state school to save money since tuition will only be 10k a year. That way I’ll have absolutely no debt until the time I hit medical school. I know that I’ll accumulate 30-50k in debt simply from four years of medical school but this is reasonable considering the degree that I’ll be getting (hopefully).</p>
<p>There is no reason to be 200k in debt for an undergraduate program. Don’t borrow what you don’t have is a good rule to live by. The interest rates on student loans are high. If you take out a loan for 200k, you’ll end up paying 100k simply in interest rates. This is about the average price of a home. Do you really want to be financing a loan for the rest of your life at an even higher interest rate then a mortgage? Is going to your “dream school” worth the debt?</p>
<p>BMWdude335, I don’t believe you realize the intensity of a loan for 200k even if you are making a six figure income. I make a six figure income and I know that I would not be able to pay off a 200k loan in a few short years, not with the cost of living and additional bills–it’s doable but the financial stress isn’t worth it. Just because you have the money doesn’t mean that you should be irresponsible. There are better things in life to spend money on rather than a fancy education. I’d say shelling out 50k a year would be unreasonable for anyone making under 300k a year.</p>
<p>How do you make a 6k figure if you haven’t started college yet? Anyways, I agree with the rest of what you said. :)</p>
<p>Showgirls make an outrageous amount of money. Plus I own a co-own a small business.</p>
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<p>I’m a Pennsylvanian and former BU student, and as someone who knows literally a hundred people who go or went to those two schools, that is the most absurd statement I have ever heard in my life. The funny thing is, it’s probably the opposite from my experience, and I despise Penn State more than basically anything.</p>
<p>
How’d you figure that “a third of the debt gone right out of school”? You can only pay off your student loan with your take-home pay minus living expenses.</p>
<p>Let’s assume you do make $100K with $30K bonus starting (that’s a dangeous assumption as the old i-bank days are gone…probably forever). How much do you think you will have after taxes? Living in NYC is very expensive. A smallish apartment goes for $2000 or more. How much do you think you can save to pay for your student loan? $2300 a month of student loan is an impossible burden. And you are looking at paying it off for 10 years!</p>
<p>Well, it may be more than 10 years!! Also, some may like Penn State better.</p>
<p>early_college,</p>
<p>Repayment schedules are almost always 10 years for those kinds of loans. Never mind that a longer-than-10 years schedule would mean you’d spend more in interest than the principal!</p>
<p>My d had to decide between a very selective private that offered no merit aid and a $52,000 yearly bill vs. a less selective private with lower tuition that offered her honors and nearly $100,000 in scholarships.
Needless to say, she went with the scholarship school. Especially since she sees graduate school in her future.
Grad. school needs to be a concern when taking on such large debts!!!</p>
<p>Good choice for her Nebraska Mom. BUT UCLAri I know people who are almost 40 and it’s been more than 10 years since graduation and they owe college loans. But this was the 90’s.</p>
<p>early_college,</p>
<p>That does occur, but most loans are going to be on a 10 year straight line repayment schedule.</p>
<p>You sure they aren’t repaying graduate loans? In any case, you don’t want to pay back those kinds of loans for that long anyway, as the accrued interest may cost you more than the principal.</p>
<p>BMWdude – my sister went to Penn State, majored in sociology and is now CFO of with 60B (yes B) under managment.</p>
<p>I am pretty sure. She went to NYU straight from high school and lived with her parents. I know she went to get a masters, but do not know where. It was somewhere local/in state though. Kay right on, BMW has no clue. Oh, I wish I was a CFO. LOL:)</p>
<p>BMWperson and Lockn –</p>
<p>I’m not sure where you get your salary figures. Those are MBA type figures, or else associate positions in Ibanks… or else consultant positions in one fo the top 4-5 consulting firms. </p>
<p>I’ll bet you whatever amount of money you suggest that less than 10% of the undergraduate business school graduates from Penn, NYU, USC, and MIT land a job paying $100,000 per year, with or without bonus. And I’ll bet the true figure is under 5%. </p>
<p>What do the other 90%-95% of undergrad private school business alums do with those monthly loan repayment demands? What do the 98-99% of students from the entire graduating classes of those same schools do? You cannot relieve the obligation with bankruptcy. The post above abotu debt slavery is very real.</p>
<p>The instant reality is that these private schools are only appropriate if the family is able to pay for more than half the current $220,000 cost in cash. And for most, that is really just delaying the payment due the piper – the money middle income families pay to private schools simply delays and diminishes their fiscal health during retirement.</p>
<p>It’s an absurd development.</p>
<p>Well said Dunnin, couldn’t have said it better myself.</p>
<p>bump…</p>
<p>My rough rule of thumb: don’t borrow more than you’d be willing to borrow for the car you’d expect to buy, at the salary you’d expect to earn, when you are finished with school. Typically, that might be about $20K. Could be more if you are going into electrical engineering, or less if you expect to teach elementary school.</p>
<p>If parents can save about $50 per week or more for each child starting at birth, they should be able to accumulate enough to pay for 4 years at a good public university. From that starting point, a student could afford a variety of other schools by adding a combination of campus employment and debt on a “car loan” scale. It might not be enough for the most expensive private schools, but that’s where financial aid comes in. If you don’t qualify for need-based aid, and don’t like the public options, then look for less expensive private schools that offer merit scholarships.</p>
<p>I agree t21!</p>
<p>$200k is not worth it for undergrad. You should borrow at most $20,000 for undergrad.</p>