Very rarely can you get a good interest car loan without some length of positive credit history which most college students don't have. It also used to much cheaper (mine was 1.9% for my Stafford loans) since it's hard to discharge it via bankruptcy but with all the noise coming from Washington, that sounds like it could change and private lenders are a lot more cautious about giving out the loans too cheaply since their risk of defaulting is now higher. In addition, auto loans like mortgage payments have collateral that can help offset defaults, where as a student loans have nothing that can be collected the debtor. I graduated with $35K in debt in 2005 and still paying some of it (but at 1.9%, paying it slowly since the money is cheap). However, if you're finding that the Fafsa Direct loan doesn't cover enough stuff like life expenses and , 1/3 of my loans came from HHL http://www.hhloans.com/. They don't capitalize interest rate so that's a plus, and the rate is ok at 5.25%. That was the first one I paid back since the rate was higher. http://money.cnn.com/2013/01/10/pf/college/graduate-salaries/index.html It should be ok to carry the debt as a comp sci major (if you can land an entry level job out of college). At $60K per year, take home about $30K (after taxes, medical and 401K, etc.). If you're willing to live a college student lifestyle for another few years it's not hard to make a huge dent in that quickly. That means don't get a new car, if you need a car, buy used. What you ate in college, continue to eat that way. Just because you can afford a table at a club, does not mean you should and etc. Though once again, if you can get some good interest rate for your loans I would rather keep some capital on the side instead of paying it back too quickly.
Went to school on mostly academic scholarships so I dont have to worry about the 100k horror stories. I will be encouraging my kids to do the same. Pay with your time while you are in school, so that you get academic scholarships and free ride to college, or else you will be paying later with heavy loans and hard work. Yeah, studying and trying to get 4.0 GPA may seem dull while you are in HS, but think of it as a 100k job, the amount which you will be saving later.
Actually, I'll say the opposite. Your academics outside of getting in the top 8% of your school is not important. Nearly every scholarship I have applied to emphasizes a. Financial Need, b. Extracurricular Activities, c. Volunteer Work, d. Academics in that order. There is little to no emphasis placed on GPA or class rank.
If you are cash strapped, try deferring your admission for a year while you go to a community college. Save a year of tuition plus living expenses. If you get a part time comp Sci job during that time you would be well positioned for the future.
No loans so far, thank God. Lot of sacrifice, having to live at home with parents, living without a car, skipping out on lots of Rockets game and anything that isn't a bare neccesity. 1 more year to go
Unfortunately, yes. Gotta bike to most places or hitch rides with good friends. This better be worth not having to pay loans after school.
Just got my financial "aid" package from UT Austin: Scholarships: $1,500 per year (State Top 10% Scholarship) Loans: $5,500 Direct Stafford loan ($3,000 subsidized, $2,500 unsubsidized) $20,328 Federal Student/Parent Direct PLUS (Interest rate: 7.8%) #%$&@
Freshman in college, no loans, got scholarships to pay for school and then some I feel bad for you guys with 40k or more in loans, btw what are you guys studying b/c it better be worth it.
It all depends. Unless you are from rich family, do not go to out of state schools or private schools unless they give you a lot of scholarships. This is especially true for getting degrees in low paying fields such as liberal arts for example. A good rule is try to keep your debt to half of your expected first year income. Remember interests do not pay your bills.
I'm in the same situation. I have the choice to go to A&M and pay 11k a year, or go to UH and probably pay ~4k or less a year. Either way, I believe my parents saved enough money to cover either option, but still, it's hard on my conscience making them pay an extra 7k because of a personal choice.
I graduated in 2005 with 19k at approx 2.2%. Went to community college 1 semester and a couple summers. I worked all the way through part time at a grocery store and waiting tables. I don't understand people who 100% finance their education. I couldn't imagine the debt load. Hope it works out for you RR.
People who have less student loan debt probably just paid more up front themselves. I graduated with $16k in 2006, about 6% interest.
UH for $7K a year? We paid over $32K for my wife to go to UH for 4 semesters (2 years) and she didn't even live on campus.
