Reply to S/o - would you allow child to take out loans for dream school

Forum Index » College and University Discussion

Reply to "S/o - would you allow child to take out loans for dream school"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Unless your child has consistent income and an established credit rating, they will not get a private loan without a cosigner. So yes, you can stop your child from taking on exorbitant loans by refusing to co-sign.

Federal student loans do not require a co-signer, but as noted above, there are limits to how much you can borrow. The current limits for unsubsidized federal student loans for undergraduate study are $5500 for the first year of college, $6500 for the second year of college, and $7500 for the third year and beyond, up to a cumulative maximum amount of $31,000. If the "dream school" costs $15k more per year ($60k total) than in-state, OP will either need to cough up the money herself or co-sign a loan for her DD.

Note that a student owing $60k would face payments of ~$700/month for 10 years. For a new graduate making, say, $45k/year, that amount would be 21% of gross monthly income. That's a lot of cash. And of course we haven't discussed grad school.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics