If loans are going to be used, they should be taken out by the student from the federal government.Hello,
looking for some reality check / guidance on college fees.
First kid got into a college this year; good science college. Fees are approximately 40k/year after minimal federal scholarship. I was shopping for some student loans, and I see some $ amounts that hasme.
One of the sites I applied for a loan is sofi.com.
For a 40k loan with a 15 year loan term, based on different options -
student has to either pay $515.86/mo (OR) $493.64/mo (OR) $386.06/mo (OR) $378.38/mo 6 mos after graduation. This is only for the first year loan, assuming the same tuition and interest rate for the remaining 3 years, they step out of college with a debt of > 200k. Their monthly payment is a minimum of $2,000.00/mo for 15 years. All these loan types accrue the interest to the loan principal during the school term.
Is this the reality of College Education? Why are people not going for Federal subsidized loans since DoE pays interest on those loan types during school year? Are there any gotchas there?
Any suggestions (or) good links for college loan process is appreciated.
me. I highly recommend you choose a school where no loans will need to be used if at all possible. If not possible, then one where a very minimal amount of loans will be used for the undergraduate degree.
Given how many schools there are with sub $10K (and certainly sub $15K) tuition, many parents and most students even without all that much pre-saving, should be able to cash flow college.
Statistics: Posted by White Coat Investor — Tue Aug 06, 2024 5:03 pm — Replies 51 — Views 3954