Loans

[PH2011327]

I'm starting to consider loan options and want to ask all you future public health experts...what is a reasonable amount of loans to take out? I understand that estimated starting salaries are not very high for MPH degrees, so at one point do you draw the line in terms of cost? Thoughts?

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[eddymay]

I was wondering the same thing. Now that I have acceptances, I'm wondering what's normal in terms of cost and how we're expected to pay for them. I think we're all still waiting to hear about financial aid specifics, no? Is it normal to take out $60 grand or more in loans?

I recently found out that Michigan will cover 1/4 of my tuition costs, but my mom seems to think that's still pretty low for a lower income family... which makes me nervous.

How are you all expecting to cover the costs? (if you don't mind my asking)

For anyone whose done this before, any advice on how to deal with the financial burden?

 

[pistachios]

Thinking about taking out so much in loans is making me sick.

http://www.boston.com/business/personalfinance/articles/2008/12/07/trim_your_student_loan_debt/

 

[2011healthpolic]

I think the rule of thumb is not to take on more loans than your first year starting salary.

 

[ph1234]

Major bump on this. I keep hesitating to accept my Financial Aid award simply because I'm not sure if I want to trim the loan amounts down or not. I was offered 8500 in a subsidized loan, and 24000 in an unsubsidized loan. I realize that these are personal figures, but I would really like to get an opinion on whether I should be taking out that much in an unsubsidized loan or not? My other options would be to take out less of the latter and try my hardest to live on a budget for the next year...

 

[awkwardturtles]

Major bump on this. I keep hesitating to accept my Financial Aid award simply because I'm not sure if I want to trim the loan amounts down or not. I was offered 8500 in a subsidized loan, and 24000 in an unsubsidized loan. I realize that these are personal figures, but I would really like to get an opinion on whether I should be taking out that much in an unsubsidized loan or not? My other options would be to take out less of the latter and try my hardest to live on a budget for the next year...

I'm not an expert on personal finance, but I do believe it depends on how capable you are of paying off these loans and how good your credit score is.

With interest rates so low these days, you'd probably be able to score a private loan at an interest rate lower than the federal unsubsidized loans. In fact, my boyfriend's loans dropped to ~2% interest rates. He currently holds significantly more interest on his unsubsidized federal loans than his private loans.

However, a private loan doesn't come with all the perks of a federal loan.

So if you plan on paying back the money very quickly, it's a better idea to get a private loan. If you plan on taking your sweet time and hope to bank on the federal forgiveness plan for public service employees, then it's better to go for the unsubsidized loans.

 

[nietzsche754]

It is indeed the rule of thumb to not borrow more than your first year's salary but that assumes you are middle class and above. If you are a working class person in this country and want to get an advanced degree the reality is more than likely you will have to borrow a fair bit of money. I can't tell you what's right for you however I can assure you that the federal government can never take more than 15% of your DISCRETIONARY income (big difference between discretionary income and income) in loans. At the end of the day if you really have sat down and gone over the numbers and are aware of the level of the sacrifice you will have to make and still want it that bad then you probably will never be happy without it. If you have a calling in life then celebrate it most people go through life never really knowing what they want to do. I am living the advice I'm giving others also I will have about 80k from my three degrees when I graduate next year.