How Much Money Should I Borrow for College?

I see a lot of people who are worried about taking out very large loans for their kids and rightly so. I also see students responding to this with their concerns. The flip side of the coin is the money you LOSE if you do not have an education.

College is no longer a luxury, but a necessity if you want to make a living. There are definitely ways to keep costs down and starting out at a community college for the first two years helps (providing you check with the school you will transfer to for the last two years about what transfers and what does not so you dont waste money and time)

The fact is that you will lose over a million dollars in your life time in income if you do not get at least a 4 year degree (and that is in today's dollars) My husband and I put three kids through college (two of whom are still there) and have a lot of parent loans to pay off. The kids also have student loans as well. My daughter just graduated from law school last year and is 150,000 in debt!!!! That is what a few dollars from undergrad and law school costs! She is earning 75,000 per year and is not able to live like she is due to 1500 a month for her loans but was it worth it??? Absolutely yes. I too went to college while my daughter was an undergrad and had to take out loans for me too. Was it worth it? Absolutely yes.

Unfortunately, the online schools take people's money without telling them most employers do not hold them in very high esteem. My advice is STEER CLEAR of those schools and go to state schools to save money. My daughter worked and still graduated magna cum laude! Your kids need to be responsible and take ownership of some of the debt (and not only student loans) in order to finance their expenses while in school. My daughter waitressed at a local Chili's about 25 to 30 hours a week and earned good money.

Please look at the reward at the end. College is a necessity, not a luxury and the expense is well worth the money. I think Obama is on the right track with trying to give everyone an even playing field by making the first two years accesible. High school does NOT prepare your kids (or you) for most good paying jobs anymore. That is a fact.

Joyce of CT 6:00PM July 27, 2009

I am right there with you and someone needs to tackle the quandary of what to do when you go to college and pay for it yourself. I went to a public college for two years (to save money), then transferred to a (better) private college for my last two years. After racking up $40,000 in debt, I was accepted into Johns Hopkins University for an MA. It was a tough financial decision, but decided to attend once I received my financial aid package and received a partial scholarship. However, I still needed to take out loans to finance my education. My parents did not pay for undergrad or grad school, plus I pay for housing by myself. I worked (before getting laid off as an intern) 40 hours a week at an hourly internship, which helped pay the rent but it did not suffice. I contemplated taking a year off of school and work, but the current economy does not help with the job situation. Additionally, if I did quit school, I would have to start paying back undergrad and graduate loans... so somehow I would need to make $60K a year to survive. I guess the question at hand is what to do when you're completely on your own? Go to college and rack up debt ($80k once I am done with grad school)? Take the risk of trying to find a job that will pay enough in order to pay back student loans? I have noticed a lot of emphasis on college savings plans and other educational tips from Pres. Obama and financial gurus. Nevertheless, I have not read anything with tips to students who do not have financial support from parents and families. There are a lot of students like us out there, and it is absurd that people suggest we do not attend college because we do not have financial support from our parents. Sorry for a little bit of rambling and poor grammar, wrote this in a hurry.

geoffrey of DC 4:20PM July 16, 2009

I am a senior at Bloomsburg University of Pennsylvania, and let me tell you, TUITION IS GOING UP. The money these state schools are getting are drastically being cut because of statewide cuts...therefore how is it possible to spend LESS than $6,000/year in loans? Because if I do the math right...(and I am a business major by the way) I AM EXPECTED TO MAKE $60,000 OUT OF COLLEGE...?!?!? HA! That's a joke. I live on my own with no help from my parents who make too much money...I'm going to be $52,000 in debt when I graduate...God only knows if this new education bill will actually help us students who are doing things for themselves. I do work as well, 25-30 hours a week and I share an apartment with a roommate, which I pay for out of pocket. I've had the same POS car I've had when I was 16, do you think I'll be able to buy a new one? Will I be able to pay for medical insurance? (Currently have none, can't afford it!) Plus raise children and get married before I turn 30? These are all legitimate questions that have me in a tizzy. So please, will someone higher up LISTEN to these posts, and realize to get a job, you need higher education, to get higher education you need money, to get money you need loans, to get loans you must qualify, to qualify you have to be poor (to get grants at least) once you qualify, you are like another commenter said, PAYING FOR A SMALL MORTGAGE. Hmmm seems strange that one has to pay off education for almost the same time as a mortgage...what am I busting my @$$ for then?!?!?!?

Andrea of PA 9:50PM June 29, 2009

I agree with all of your statements. I am currently enrolled at UofP for my Associates and am almost finished. The cost is ridiculous considering you have no room or board and still have to pay for your own books. Fortunately, I realized it was all a bunch of crap before I enrolled for my Bachelor's.

I have been working in corporate america for about 12 years and have experience in many different areas. I am hard working and a total team player. Unfortunately, I will never move up the ranks without the piece of paper and I work in the Automotive industry and in fear for my job. My husband lost his job 2 years ago as part owner of a 3mil family business with his mother when we found out that my father-in-law was molesting my children (3 and 5 at the time) and fired him when we contacted the authorities. We went through hell including losing his 80k/yr job, our home, no justice for the kids (nothing happened to them)and climbed into a mountain of debt in which I cannot get out of without filing bankruptcy - which I cannot do for another year because of a previous filing 7 years ago.

I begged for help from all of the agencies I donated to and according to them made too much money (they only look at what comes in and not what goes out) and suffered from severe depression. My husband and I picked ourselves back up and enrolled in school - thinking that would be the first step in providing a better life for my kids and getting a better paying job. I have a 3.8GPA and racked up 20k so far with 2 classes to go. I have applied for grants and scholarships but I swear they get lost in the shuffle because I have had no respoonse. I recently was accepted to Arizona State (online) program and was elated! Thought better school - better degree. The only problem is that most of my Associates credits may not transfer and I could easily rack up 60k when it is all said and done. Even though I only went through Federal loans - how am I going to pay that back? I have two small kids (that I have to think about for college) and a financial situation that I did not create but have received NO help other than the FAFSA. I am all for donating to the needy but what happens when you are needy? My children have lost most of their family, their home, and two parents who not only have to work 40+ hours a week but go to school to even compete - when do we get to see the help that everyone advertises. I have worked very hard to keep some normalcy and avoid almost certain psychological damage to my children by setting good values and examples. Now I am wondering, was it really worth busting my butt to get an education when the overall picture may not be so bright. At the end of the day it doesn't matter what me or the rest of the middle class taxpayers went through - it is just another story for the powers that be and they will still need their money when the time comes.

kmthompson77 of MI 2:02PM June 24, 2009