Should I accept this loan offer?

Question

I graduated from high school and got accepted to a private university. The tuition for one year is about $30,000. Half of the tuition well be paid by grants, awards, and by my work income. To take care of the other half im being offered federal loans, Perkins loans and a loan from the school that all add up to the rest of the money i need to pay the whole tuition. ($14,000) It just seems that that's a big debt for an undergraduate freshman, and ill most likely need to take out more loans to continue paying until i graduate which will just add to the debt. What scares me the most is reading peoples stories who are in dept due to student loans and them going into default, which screws up their credit and the government taking their federal tax returns. Its not to late to not accept the loans and consider going to community college. Should I accept that loan offer.

Answer 1

If you need the money urgently for your educational expenses, then accept it. But, also look for a part time job for refunding it, or atleast to stop compound interest that is likely to be generated. Always keep in mind that your are indebted, and ought to work harder then others.

Answer 2

It depends, remember, that is just for one year. So lets assume you stay with them for the whole program, just assuming, you'll need around 56,000 in student loans.



Sometimes, a school isn't right for a student because can't afford it. Remember, you'll still have to pay it back, even if you don't finish. So what happens if you take out these loans, and something happens to you where you can't find a job or didn't earn that bachelors? Now, you have 56,000 in debt, and no means to pay it back.



On the other hand, you could find ajob that pays 100,000 and be set.



Personally, if you are going to take out that much in students loans a year, I would go to a state school (which I did lol), and still be cheaper, better off, and still a good education. For 14,000, at least in Georgia, you can earn a bachelors degree at a public state school if you look hard enough. And for another 10,000, you can get a masters.

Answer 3

Since you are being awarded a Pell grant, you can probably attend a local Community college for less than your entire PELL grant. Meaning you wont have to take out ANY loans and will probably even have money for books AND extra cash for living expenses and transportation costs. If you can go to college for free why on earth would you turn that down? After two years transfer to that private school and then start piling on the debt (if you must).



Example: My local Com College costs 3000 a year. (1500 a semester). Students who get the max Pell grant of 5550 a year then have the extra 2550 in their own pocket to do with as they see fit. NO LOANS BABY!!!!



Nothing better than a free ride. Private schools are WAY over rated... especially when no one cares you paid 10X more than you have to... except you when you are making those student loan payments until you are 50 years old.