Questions for any college grads?

[BC69]

I just got through having a conversation with a close friend of mine and we were discussing college tuition and loans. If anyone doesnt know the costs these days, Boston College next year is going up another 8% and will total over $44,000 for my junior year.
Anyway, both of us are paying for college ourselves with loans, and pathetic financial aid packages. My parents are not in the situation to really help, and I have always thought that with my education here and the field I am going in that I will be okay to pay them off in a reasonable amount of time. I had always assumed I was in the same boat as alot of my friends from home. My friend was complaining bout trying to make some payments now, and that how in total for all four years he needed to pay about $20,000 in loans. I was pretty shocked, because right now I have already amassed over $65,000 and I am a Sophomore! My goal was to keep my loans somewhere around $100,000 for a total, and lets not talk about interest rates. I somehow got slapped with a monthy variable and its at 12% right now!

I know some people might not want to talk about finances, it is not something anyone likes. But I am just wondering if anyone is in the same boat, did anyone leave college with over $100,000 in loans? Lets say it will be around 80,000 is bank loans, 10k in federal low stafford and perkins, and another 10 in Boston College loans. Is anyone dealing with, or delt with paying this type of debt off?

Thanks!

Tim

[ottatyme]

Not having amassed quite that amount during mine (and my wife's) college careers, I'm frightened now at the thought of putting my three kids through college....
I'm stunned that you have a rate of 12% on a student loan.... is this, by any chances a personal loan w/ a variable rate? Is there a clause on having to pay this loan as-is, or are you in a position to consolidate a few loans, move to another lender with a re-finance (yeah, it might cost a few bucks out-right, but the long-term savings and grace periods alone would off-set the initial outlay)?? When you graduate, you have a grace period, and on a student loan, they cannot make your payments more than a set percentage of your pay.... But, man... that's a lot of cash, no less.... I'd look into options on re-financing, etc... A lot will depend on your credit score, obviously, but with banks in serious competition, your chances of landing a nice rate wehen someone buys your loan might be good in your favor.

[BC69]

Yes, as I was saying the 12% is a variable rate loan. I had originally recieved the loan from my bank at around 4-5%, but Sallie Mae bought out the loan and proceeded to alter the interest rate. Sallie Mae is probably the most messed up place to deal with, I am not suprised they had an accounting scandal earlier this year! The rate is something I am going to try and get changed, but its like talking to bricks when calling them.

And yes, I truly don't know what people with young kids are going to be doing in 5-10 years down the road. At this rate you will be paying over 60k a year! There has to be some cap at some point, I just dont see any reason for such high costs. BC is sitting on over a billion dollar endowment, and they still find reason for increase!

Thanks
Tim

[Elusive R]

I know this won't help, but my education at Arizona State cost about what you're paying for one year, and I stayed an extra semester. I know a lot of kids in your type of situation, though. It's hard to work and go to school, so loans are the way to go. I'd be very upset at Sallie Mae and the school. ASU kept increasing tuition every year as well, and it really makes it hard to plan ahead for school because you end up having to pay twice as much as you planned.

What is your major?

Best of luck,
Ryan

[BC69]

Haha, that doesnt help!!! But I understand, and I know some state schools are still cheaper, but I wanted the best education. I actually am working and going to school, I work 4 days a week in the city and get paid pretty well as a finance intern at a start up software company. I know I have heard stories that people "pay" there way through college, and I know people who did. But these days the job money doesnt even dent the interest expense each month!

I am a double major in finance and accounting, hoping to go into Investment Banking, basically have no soul for a few years, but it would help with the loans!

Thanks

Tim

[Hdesign]

Tim,
You can do a general search on scholarships and grants online. Some come from the weirdest places like your home town, a local Rotary or Kiwanis club, an Irish American Legion, etc. Many of them require an essay, consistently good grades or something to qualify for them. Pell Grants, and Staford loans are the way to go if all else fails but whatever you do, don't take out a Gate Loan. THEY SUCK!!!!!

I also went to school in Boston. Halfway through my Junior year, they lost all of my enrollement and financial aid info during a Co-op semester. They didn't make any effort to contact me about the situation until 3 days before the next semester began. In an emergency I ended up with a Gate Loan and I'm literally paying 3 times more for my education than I would with another grant/loan. The worst part is that it cannot be consolidated at a fixed low rate....ever. Sally Mae, Stafford and other subsidised loans can.

A word of advice about payoff...pay it off as soon as you possibly can, the interest in the long run will absolutely kill you. The car may have to go on the back burner for a while!

Ben

[ProStreet R/T]

Tuition has been going up drastically out here since 01'ish. It's to the point now where a JC is in the same price range as a cal state.

That being said I know a few people who have come out of school 6 figures in the hole but most have a law degree by then. If you are a soph and $65k into it something is very very wrong. You need to sit down and review all your finances, loans, etc. 12% for a student loan is highway robbery.

I would try to get that sorted out right away, if you leave school $120k in the hole thats gonna take 10 years to pay back. :wow:

I'm curious, where were your parents through all this? Somewhere along the line they should have 86'd the whole idea of an adjustable rate loan.

All I can stay is stick with it and kick some ass.

[BC69]

Well the big reason I am in this situation is because my parents income the year I was going into College was ALOT higher then it is now. So my freshmen year aid package had NOTHING. Throughout my freshmen year my parents finances got worse, so 99% was paid in loans. Boston College actually gave me 3k in grants...and TOOK IT AWAY mid semester for no reason! My parents are very aware I am not so well off, but neither are they right now so I don't expect much help. My brother and sister have alot less than me because they went to cheaper schools and at a time when my families finances were better.

This year my parents income is still going DOWN, and the aid package went up a bit, thats why I had less loans this year, but it is still not where I want it. Believe me I HOUND my aid advisor. I think she may hate me by this point, but I worked in the aid office last year as a work study, and they are not too bright and need to be pushed, so I have...and will continue to. I feel like having the student call the aid person has a bigger impact than the parents because it shows it really does matter, as most kids just leave it to their parents.

I would have been alot better off had my families finances changed before I went into school, but they make the aid packages off the previous years income, so I basically ended up in the worst situation, as real income was going down, but previous years tax returns were higher. That is why I think I can squeeze out with about 100k, because I am hoping for at least the same aid package next year or more. I wont have another 40k year, but 25k isnt right either!

Thanks

[Hdesign]

Every time you and your parents fill out that stupid FAFSA form for financial aid each year, BC should be adjusting your aid up as your parents finances go down. How are your grades, are they consistently above average? Usually, grants are merit based and will reward you for hard work. 12% APR is freakin nuts, get rid of that loan and get another.

If you're not knocking on the financial aid advisors door every day they forget you. My experience with those people is piss poor at best and they flat out don't care about helping you.

What about transferring to another, less expensive school? If you want to stay in MA for school in finance, Bentley in Waltham and Merrimack College in North Andover are excellent. You're less likely to get lost in the paperwork there.

Good luck and rip the advisor a new one if you feel they're not helping you. Contact the Dean of Students as well. You hired these bozos....you can fire them too if they're not gettin it done. Good luck!

[BC69]

Haha, sounds like we had the same aid advisor! The best part is mine is Part-time. So she really only is at the office on Thursdays. You can bet who calls her every thursday, and it takes weeks to get things done.

My grades are good, I am above average but not outstanding. I always keep my eyes out for scholarships and such, but (and I mean no offense) a large % of them are for minorities more so than need. I am limited on what I can apply for, but I try.

I almost transferred this year, got applications to Harvard and Upenn...thought that if I was going to pay, I would pay for Ivy. But I decided I really do have good friends and really do enjoy BC as a whole, its just the cost that is killer.

Thanks Guys.