Undergrad Debt??

[danzgymn86]

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As the title says, how much debt did you graduate undergrad with, if any?
It's looking like I am going to have to take out a private loan for the first time for my senior year. (I have previously had Stafford Loans).
It looks like I will graduate undergrad with $20/k in debt...how bad/painful will that be in the future?
(Keep in mind, I also plan on doing a PhD program too...I want Social Psych...)

 

[RayneeDeigh]

I'm graduating without debt from UG because I had scholarships and a father who invested in real estate (and also because my UG tuition was $4000 annually, if that). However, I have quite a few friends doing their UG in the states and 20K in student loans at the end of undergrad isn't too bad. If you try to get into a fully or at least partially funded PhD program you'll be able to pay off your debt in no time.

 

[danzgymn86]

I do have a scholarship that is $3k/year but other than that, I can't seem to get other scholarships. Though, I did have $1750 from a high school scholarship that I used my Freshman year.
Other than that, I work my butt off because my parents don't give me any money at all...and I don't get aid because they have a lot of money.
Such is life. So I have some loans and then I just have worked a lot during the summers and semesters and written big fat checks to my school *sigh*
Question: If I end up taking a year off after undergrad, do I have to start re-paying the loans for that year and then can I stop paying when I go back to grad school?

 

[Therapist4Chnge]

Thanks to scholarships and a 'real' job for a couple of years during school, I walked out only down $25,000....and paid it down over a few years. Tuition + room / board was $31,000/yr when I was there, so considering that....I did well. I can't imagine people dropping $120,000+ for UG...but people do it!

-t

 

[JockNerd]

Thanks to being born in my wonderfully paternalistic and socialist-esque home country, which actually recognizes the value in post-secondary education and fund the crap out of it, I was able to graduate with no debt at all through a combination of a little bit of scholarship money and working over the summer to pay my $3000/yr pittance of a tuition.

$20k seems insane to me, but only because my entire education probably cost about $12k in total.

One of my friends had $10k in debt from doing a certification that she was able to pay off in only a few years without being horribly inconvenienced, and she wasn't making a hell of a lot of money and was simultaniously living on her own and doing a university degree. The problem comes when your interest payments alone are massive and prohibit paying off the principal, as happens when you accrue something like $100k in debt.

I can't believe how much you Americans are forced to pay for your undergrad degrees! 😱

 

[Jon4PsyD]

Well I have a friend that went to a "top tier" university and is $180,000 in debt following graduation from this 4 year undergraduate program. My undergrad (at a state university) was $4,000 a year (16,000 overall) and I lived athome. Having a part time job and scholarships, I walked out free of any debt.

Now back to my argument, if I spend $80,000 to $100,000 for a PsyD while my friend $180,000 in debt goes to a fully funded Ph.D. program. Who ends up coming out ahead again? Obviously neither of us, but who is a little better off than the other? Just wondering🙂

 

[JockNerd]

Well I have a friend that went to a "top tier" university and is $180,000 in debt following graduation from this 4 year undergraduate program.

What field was that in? Does it actually cost that much to get a BA in psych from some US schools?

 

[KillerDiller]

What field was that in? Does it actually cost that much to get a BA in psych from some US schools?

It can cost that much, but it also doesn't have to. I too graduated from a private top-tier university and I have zero debt from undergrad. I hate to see people discouraged from applying to what may be their dream school because they think private schools are by definition out of reach for middle and low income families. If you look for schools that offer need based funding through grants and those that have need blind admissions, you can really get some fair deals. I ended up paying about the same tuition as I would have paid as a resident at a state school and, with work-study during school and jobs over the summer, it was relatively easy to pay off my tuition expenses.

Now, however, I'm going to have to start taking out loans for the first time for graduate school. I'm not going to a professional school or anything, and will not graduate with 100k plus in debt, but the funding package at the school I did accept is not good enough to live on. Even though it's mostly the professional schools that cause graduates in this field to go so far into debt, there are also respectable, school-based Ph.D programs that just can't provide quite enough to make it work. It's gonna be a little rough, but I hope to manage these loans intelligently.

 

[Jon4PsyD]

It was in Psychology and yes it can definitely cost that much, many top shcools are now charging around $700-800 per credit. When undergrad comes to 120-140 credits (depending on the school) you're talking a LOT of money right there, then add in about $50,000 if not more for 4 years of room and board...this not including books, food, and enjoying life money for 4 years..and you're talking a LOT of money..so $180,000 isn't an outrageous figure at all.

It happens and yes programs are out there, but there are definitely situations that still exist in which certain people don't qualify for anything.

Jon

 

[GiantSteps]

It is even worse due to the high interest percentage rates students are paying through private loans - 13 to 20%!😱

http://www.nytimes.com/2007/06/10/us/10loans.html?_r=1&ref=education&oref=slogin

Good thing RayneeDeigh graduated without debt. Americans run to Canada to shirk their responsibilities. Where would she have run?

 

[Therapist4Chnge]

WOW.....13-20%, that is insane!

-t

 

[RayneeDeigh]

It is even worse due to the high interest percentage rates students are paying through private loans - 13 to 20%!😱

http://www.nytimes.com/2007/06/10/us/10loans.html?_r=1&ref=education&oref=slogin

Good thing RayneeDeigh graduated without debt. Americans run to Canada to shirk their responsibilities. Where would she have run?

Haha. I'm still not buying you a boat or a computer. 😀

 

[RayneeDeigh]

I do have a scholarship that is $3k/year but other than that, I can't seem to get other scholarships. Though, I did have $1750 from a high school scholarship that I used my Freshman year.
Other than that, I work my butt off because my parents don't give me any money at all...and I don't get aid because they have a lot of money.
Such is life. So I have some loans and then I just have worked a lot during the summers and semesters and written big fat checks to my school *sigh*
Question: If I end up taking a year off after undergrad, do I have to start re-paying the loans for that year and then can I stop paying when I go back to grad school?

Hmm the thread kinda got sidetracked and I just noticed nobody answered you so... it's me to the rescue! haha.

First of all, that's amazing that you've done it all yourself. I have so much respect for that.

As for having to repay undergrad loans if you take a year of... it depends on the loan (to the best of my knowledge). In MOST cases you can find a way to defer payment. It's best to talk to the loan people to find out the exact terms.

 

[GiantSteps]

I do have a scholarship that is $3k/year but other than that, I can't seem to get other scholarships. Though, I did have $1750 from a high school scholarship that I used my Freshman year.
Other than that, I work my butt off because my parents don't give me any money at all...and I don't get aid because they have a lot of money.
Such is life. So I have some loans and then I just have worked a lot during the summers and semesters and written big fat checks to my school *sigh*
Question: If I end up taking a year off after undergrad, do I have to start re-paying the loans for that year and then can I stop paying when I go back to grad school?

Most loans usually have some type of grace period after one graduates until the repayment begins. Then if one can not start paying, there is an option to defer payment but your loans starts to compound interest(I think that is the correct term). I think almost all student loans allow for deferment without interest adding on if one is a student at least half-time. However, it may depend on the specific loans.

If your parents have moeny but are not giving you any then you should at least be declaring yourself an independent. Therefore, financial aid can not count your parents earnings in determining your ability to pay for school. Yet, I believe that you have to have declared youself independent on your taxes for at least a year prior to applying for financial aid. If your parents want to teach you the value of paying for your own education, at least do not allow the school to assume they are paying for you when they are not.

Haha. I'm still not buying you a boat or a computer. 😀

No boat, no computer, and no mansion! 😡 I will deal with you in a PM where you will not have your dad's real estate to hide behind or you free Canadian money (RayneeDeigh informed me that Canadians get free money from teh government if they are single!). Well, you did promise me a custom made sock puppet so don't you deny it!😛

 

[ny1020]

Question: If I end up taking a year off after undergrad, do I have to start re-paying the loans for that year and then can I stop paying when I go back to grad school?

I deferred payments for my college loans for 3 years because I just wasn't making enough money to pay them. In the past 3 years, I've paid off half.

I'm not sure if you can start and stop - I would call them and ask. But I do have a friend who deferred her college loans through medical school because she was a continuous student and now that she's out of medical school, will be paying back all of it. That might be an option for you, if you wanted.

 

[Therapist4Chnge]

American here. . . I went to a good undergrad institution. Merit-based scholarships + worked a little = no debt upon graduation.

Jon is one of those *special* people!

Have you heard back on your EPPP?

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I had free rides to some state uni's, but they weren't really my style. I too swung together merit-based scholarships + work to get a $160k UG education for .10 on the dollar, because that's how I roll. 😉

-t

 

[Therapist4Chnge]

Heh, special. . . deranged. . . what's the difference?

But seriously, many universities offer their own brand of merit scholarships beyond the obvious national merit scholar program.
Yeah, I went the state uni. route. . . didn't know what I wanted to do. . . the state school was good. I had a blast.
The networking opp. at an Ivy is probably very valuable.


Passed the EPPP. Pretty easy exam.

There are some awesome state uni's, so some people can double dip on a 'free' education and a great learning environment. I wanted a very hands on experience, small classes, tight community, etc....so I didn't bother looking at any school over a certain size (which ruled out a ton of great larger schools). To each their own.

As for the EPPP, I took a practice exam to get my bearings (just to see what I'm in for when I eventually sit), and I passed pretty easily. I am still going to study my butt off for it (no need to chance it), but it was nice to know that I've put myself in a good position to handle it without killing myself.

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Yeah...so, back on topic.......Debt.

-t

 

[psychanon]

I'm really lucky to be from a state with one of the top state university systems in the country. I stayed in-state, got a superb education (i think on par with some ivies), paid low tuition, and graduated with zero debt. Now that I am in grad school, I realize that where i went to undergrad will probably never play a big role in getting anything I apply for in the future, and I am so glad that I didn't go to one of those fancy private schools that I was gunning for at age 18, as I would have had massive debt. Then again, if I had been from a state with a worse university system, maybe my decision processing would be different.

 

[Ollie123]

You in Cali by chance psychanon? Heard fantastic things about nearly all the cali schools.

I was fooled into thinking similar things about my state education system (NY) by a combination of parents/teachers/guidance counselors. (Okay, I guess I can't speak for the whole system, but my undergrad is surely a terrible place and is known as one of the "better" ones so judge I shall...)

I was largely unimpressed and would actually have been quite happy to pay more for a better education. That's four years of my life I'd like a second try at.

So let this be a lesson...save money where you can, but don't be willing to sacrifice quality too much. My education was cheap, but I got what I paid for.

 

[Therapist4Chnge]

I thought of CA too...definitely a number of solid schools in the bunch.

-t

 

[psychanon]

Nope, not Cali...but similar quality, IMHO.

 

[Duckygirl]

Question: If I end up taking a year off after undergrad, do I have to start re-paying the loans for that year and then can I stop paying when I go back to grad school?

Danzgym86~ It depends on what kinds of loans you have. If you have government-issued federally funded loans such as Stafford, Direct, or Perkins Loans, you will have to start repaying your student loans in that year off after the grace period ends. I think it's six months for most after the date of graduation. Once you go back to school full-time, you no longer have to make payments on your loans, they will go into deferment as long as you notify the appropriate institution that you are indeed, a registered student again. If you have privately-funded loans, I couldn't tell you at all how and if it works with deferrals and all that. I do know, the more loans you can get from the federal government the better; interest rates are fixed, lower than private institutions, and have much more flexible repayment options (i.e. deferment).

...If your parents have moeny but are not giving you any then you should at least be declaring yourself an independent. Therefore, financial aid can not count your parents earnings in determining your ability to pay for school. Yet, I believe that you have to have declared youself independent on your taxes for at least a year prior to applying for financial aid. If your parents want to teach you the value of paying for your own education, at least do not allow the school to assume they are paying for you when they are not...

I'm with GiantSteps on this one! If your parents are not paying for your schooling, declare yourself an independent and you should get decent financial aid as a young person on their own! There are two caveats to this: 1) If your parents are claiming you as a dependent for tax purposes (which sucks for you!), even if they are not paying for you any longer, I don't think you can simultaneously declare yourself on your own. 2) I think GiantSteps is right when he said that you have to be on your own for a year or more to get that status to apply for financial aid as an independent. Boo.

I deferred payments for my college loans for 3 years because I just wasn't making enough money to pay them. In the past 3 years, I've paid off half.

I'm not sure if you can start and stop - I would call them and ask. But I do have a friend who deferred her college loans through medical school because she was a continuous student and now that she's out of medical school, will be paying back all of it. That might be an option for you, if you wanted.

You can definitely start and stop. In fact, you can start and then stop again. Start and then stop. Start again....as long as you qualify for the conditions your lending organization stipulates for the time periods they allow.

I ended up with $34,000 in debt combined from my undergraduate and master's degree, with about $15,000 coming from undergrad. I work in mental health as a technician (read: low-paying but excellent experience), and make very little money. Because I owe around $450 a month for student loan payments and that's more than 20% of what I make per month, I qualify for a financial hardship deferment for all of my loans (= 1 year with no payments). You are still responsible for the interest that accrues in that time off, but I paid for a year's worth of interest on all of my loans for about what I would have paid for one monthly loan payment. It's the ONLY way I was able to pay for applying to 15 schools, taking both GREs, mailing, and traveling for interviews. If you have federal student loans, there are a litany of things you can defer for, including financial hardship. For Direct Loans, financial hardship can only be used for up to three years, and they have to be virtually consecutive years. You can also defer [for various amounts of time] for military service, Peace Corps service, unemployment...You can even make payments on your loans while in deferment, if you have the income to spare.

In addition- graduate psych friends- you can even defer loans if you are in a graduate fellowship program. Here's the website for the Direct Loans Deferment List: https://www.dlssonline.com/borrower/DefermentFormList.do?cmd=initializeContext.

Good luck to Danzgym86!