Is taking large private student loans a good idea?

Here is my situation:


So I have been accepted to OSU as an out of state student and I really wannt go there. But it costs about 30k a year (everything included) and my family isnt low incone/middle class and I wanna get the hell outta my state (wisconsin). I know I will get some FAFSA aid and maybe a couple scholarships. That means I might have to take up to 60-80k in student loans





1. Is that considered a lot for student loans?


2. Is it a good idea?


3. How long do you usully have to pay it off? and do you start paying after you complete college or right away?


4. what is an average intrest rate for student loans?

Is taking large private student loans a good idea?
If you're talking about going to The Ohio State University and not another OSU... You're right, it's a great school and let me be the first to welcome you to Buckeye Nation.





While you'll get a great education and it will serve you well throughout your life, it is important to do so with some financial responsibility. As was pointed out, it's not a good idea to take on more debt than you can handle after graduation.





But, I would say if you are willing to do what needs to be done you can get the degree at the school you want while being responsible.





Here's the steps you have to take:





Apply for federal student loans, you already know about fafsa, so I won't go into detail about this, take as much as you can.





You think you may get a scholarship or two, that is a start, but be sure to apply for every scholarship you can. Seek out local business people and local civic organizations. Ask if they have any type of scholarships. Find scholarship sites online and apply, apply and apply some more. The major scholarship engines are listed and reviewed at http://www.reviewscholarships.com/ Also look for help from alumni in providing scholarships, contact the school to see if they can put you in touch with any.





Work / study while this is not an easy thing to do, you can still work while in college and make enough to cover some basic living expenses. This means you will have to borrow less. Contact the school to see if they have any programs that you would be able to get into, again, use any alumni contacts you can find to help you with a job. (unless you get an athletic scholarship!) On a trip to the area try to find places that hire college students, talk with the managers. You'll likely be looking at retail and food service... you aren't doing this as a career, but it's good experience and you can make decent money working part time.





Finally the private student loans. They do have a higher interest rate and they do require a positive credit and employment/income history. You may find you need a co-signor to get one. There isn't really an average interest rate as these are not provided by one source. Each lender has their own guidelines and terms. Payment for private loans are like federal loans in one way, they start 6 months after you leave school. NEVER borrow more than you need.





You should apply at several just to get a feel for what each lender can offer. You don't need to apply for these types of loans now, they only take a couple weeks to process. Just bookmark this and come back when you are ready. A couple I'd recommend trying when you're ready are Student Loan Advisors at http://www.StudentLoanAdvisors.com and Chase bank, they have a private lending department you can reach online through http://www.usadegrees.com/ but again try these only when you're set with your federal loans and scholarships. You do not want to borrow more than you have to. Good luck with your education! O.H.
Reply:The whole "better school out-of-state" situation always makes me laugh because - for every kid in Wisconsin going to Ohio because it's "a better school" there is a kid in Ohio going to a school in Wisconsin because it's "a better school".


Is that "grass is always greener on the other side of the fence" attitude really worth 30X4 years = $129,000 potential loan and payments of $1,200 a month when you graduate?





Good rule of thumb when borrowing is never borrow more (total for 4 years) than you would expect to earn your first year upon graduating. With your degree could you easily get a job making 120,000 a year immediately? If not, you won't be able to afford those payments. If you would expect to earn say 40,000 a year after you graduate, then borrow no more than that amount over the course of your college career. (Payments would be about 400 a month)





You will not be able to borrow that much in federal student loans. (Max amount to borrow as a freshman is 3500 per year- yes you can go to school with this amount) so you'd have to go to private student loans which require credit checks, cosigners, high interest rates and high destination fees. These loans are substandard and evil.


Save your money and go to an in state school. Take out the big loans for grad school.


Good Luck.
Reply:I think 60-80k in loans is an awfully large amount, however it isn't too much in this case because you are borrowing it to expand your profession. Once you reach your goals you will be able to pay it all back in the long run. You also have to be careful when applying for a loan because not all loans are good loans. A good loan program will grant you your desired amount and begin charging you not only after you finish school but when you start you profession.