CS had loans? Size of payments?

Avatar for coldfingers
Community Leader
Registered: 04-30-2000
CS had loans? Size of payments?
13
Thu, 09-23-2010 - 10:33pm

Since we talk about our cs's and taking out student loans, for those who have a graduate with student loans, how much did they borrow and how much is their loan payments?

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Avatar for sabrtooth
iVillage Member
Registered: 12-03-1999
Fri, 09-24-2010 - 2:36am

OK, here goes... My went to University of Illinois, Chicago for 5.5 years. Her loans total $27,000.00, with monthly payments of $252.00. She became a HS teacher, her starting salary was $40,000.00, and she moved out 9 months after she graduated.

By contrast, my gf's dd, who is 1 year older than my dd, went to Dominican for 4 years. Her loans totalled $41,000.00, with monthly payments of $563.00. She became a nutritionist for a small chain of day-care centers, her starting salary was $24,000.00, and she hopes to be able to move out of her parents house next year--8.5years since she graduated.

iVillage Member
Registered: 12-23-2006
Fri, 09-24-2010 - 10:03am

It depends on how much is borrowed and the interest rate
at the time the loans are taken.

My dd had scholarships and a college fund to pay for college.
She went to WVU here in our hometown which is pretty cheap.
She was able to pay for all 4.5 years with out taking out loans.
This year is 17k total if you live in the dorms.

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iVillage Member
Registered: 11-28-1999
Fri, 09-24-2010 - 12:20pm
Back in 1982 I graduated from law school & college w/ about $20,000 in loans (total for both) and I remembered paying about $3000/yr--my 1st salary then was only $12,000!
Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Fri, 09-24-2010 - 5:13pm

I looked up a student loan repayment calculator.

A student with $25,000 of loans @ 6.8% on a 10-year plan will pay $287.70 every month for 10 years for a total of $34,524. Ouch! That means that they need to make an extra $4600 pre-tax per year to set aside for their loans, assuming that about 25% of their income goes to taxes. It also means their education cost an extra $9524 in interest.

A student with $50,000 of loans on the same plan needs to repay $575.40 per month and make an extra $9206 to repay the loan.

A student with $100,000 of loans needs to pay $1150.80 per month and make an extra $18,413 pre-tax to repay the loan. They also pay an extra $38,096.57 in interest for their education.

Yikes.

Kelly

iVillage Member
Registered: 08-06-2009
Sat, 09-25-2010 - 11:30am

The debt calcuators are no more scary than payng for any kind of investment,

iVillage Member
Registered: 11-28-1999
Sat, 09-25-2010 - 12:20pm
I just give my DS the $2.50 for lunch--I wouldn't mind making a sandwich if he would actually eat them, although at age 15, maybe he'd have to be making his own sandwiches, but this kid doesn't like sandwiches! For a while there he was taking a tuna sandwich every day--I can't imagine keeping it unrefrigerated for a few hours, even though I would put an ice pack in w/ it. So whatever the lunch is, he'll just have to deal w/ it.
Avatar for sabrtooth
iVillage Member
Registered: 12-03-1999
Sat, 09-25-2010 - 6:03pm

This is also what PARENTS who are funding their children need to pay, for EACH child. Consider:
In the US today, the average age of parents when their FIRST child goes to college, is 44.
In the US, parents are increasingly using their retirement accounts to pay for their children's educations.
Up until 2 years ago, people were using second mortgages to pay for their children's educations. One guess as to what happened to a lot of them.

<<>>
http://www.tellinitlikeitis.net/2010/03/paying-for-college-should-parents-pay-for-college-tuition.html
http://studenomics.com/personal-finance/why-parents-shouldnt-pay-for-their-kids-college-education/
http://mynextbuck.com/why-you-should-save-for-your-kids-college-education/

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Sat, 09-25-2010 - 6:16pm

Of course whoever takes out the loan is paying the interest. Most people would be much better off if they examined the entire cost of taking out a loan, rather than looking at monthly payments. And naturally people should do this for credit cards, home improvements, mortgages, cars, and any other type of loan. Many don't. That's why I included what the additional interest cost is for each of those levels. It can be a real eye-opener. If it's your kid who's taking out the loans, they should be aware of the true cost of their education.

I also agree that people shouldn't sacrifice for their kids' college education if it means they can't pay for their own retirement, because that really helps no one. None of us want to have to depend on our kids to fund our living expenses when we're 80, and our kids don't need that burden in their 40s and 50s when they have their own kids and their own retirement to think of.

Remember, however, that NOT everyone is borrowing to pay for their kid's college education; some people can afford it and want to pay for it, and it doesn't compromise their retirement. For those who aren't as fortunate, more prudence is required, and they can teach their kids useful life lessons about making decisions about money.

Kelly

iVillage Member
Registered: 03-14-1999
Mon, 09-27-2010 - 10:15am
My DS had a college loan with Dickinson College and then with University at Buffalo- they are with 2 different loan companies so he could not consioldate them(well I guess he could but it was a hassle so he opted to leave them) I don't recall what the amounts were but I do know that when he graduated from U.B he did receive e-mails from the loan companies regarding payback he did talk with each too- since at the time he was leaving for Europe he was given some time - I think 30 or 60days to work out payment plans. After he moved to PA and began looking for work- once he a job - he was allowed to work out payment plans at a very reasonable amount and had it auto.deducted from his bank account. Once he is working more & gets an increase he can increase his payback amount. He told me they were very nice/cooperative with him, he had several payback options to choose from and he picked the one that worked best for him and he can change it in the future depending on his income.
Kathy
Kathy
Avatar for coldfingers
Community Leader
Registered: 04-30-2000
Mon, 09-27-2010 - 12:33pm
I'm GOOD!
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