Too much Grad School Debt...?
I am part of a grad program that has a full tuition waiver and a $25,500 a year stipend.
I still plant to take out $8,500 in subsidized stafford loans to help with living expenses for both years of grad school.
When i come out i can expect to get a job that pays anywhere from 35,000-55,000 a year (depending on where in the country i work/ in what type of institution). jobs are prevalent in this career.
I have only $1,500 in undergrad student loan dept.
So is having $18,500 in student loan debt too much to have after getting a masters?
Update:Plan* not 'plant'
Answers & Comments
Verified answer
It is not excessive, but have you considered any other alternative? Debt is debt and any payment is a drag. 35-55 K is an OK salary but its not easy street.
If you do take out the loan live frugally after you get that first job and pay off the debt in 2 yr or less.
I don't think so. If you do, however, have trouble with your monthly payments after school is out, there are several different ways you can pay your loans back:
What you get first is the usual 10 year repayment plan. Your monthy payment on that plan will be between $155-165.
http://www.finaid.org/calculators/loanpayments.pht...
If that is tough for you, you can opt for an "income-sensitive" repayment plan, in which you will send in two of your most recent pay stubs, and your lender will make your new monthly payment anywhere between 4%-25% of that amount.
http://wwww.finaid.org/calculators/isr.phtml
There are also a few other types of repayment plans:
http://www.finaid.org/loans/repayment.phtml
But all in all, 18,500 for a bach + master's is a good deal. You should consider using your student loan money to pay off any higher interest rate loans or credit cards you may have.
Not to me - you've always embarked on the grad school journey so I guess you don't think it's too bad as well?
I have a grad school assistantship that covers tuition, but I still took out the federal aid ($8,500) as well - meaning I'll leave with $17,000 upon graduation. I'm using my aid to fund purching a professional instrument (I'm a clarinetist) and for living expenses.
But, I have $10K in loans from undergrad school and $3K left on my car loan. So, I'll have much more than you - that might make you feel a little better about it. The dept. of ed. is flexible on repayment options and will work with you, as long as you pay it on time.
I personally don't think $18,500 is excessive, it's very low in comparison to the average student loan debt for students who pursue beyond their bachelors (and even just the ones who go for a bachelors!).
I'm already in almost 50,000 and that's PRIVATE loans, before the stafford loans I also have.
All that and I don't even have my undergrad yet.
No, it is not because there are people in worse debt after graduation. Some are even larger debt after their bachelor's degree. I have heard of people $100,000 in debt.