Personal Consumer Issues • College Costs

Hello,

looking for some reality check / guidance on college fees.

First kid got into a college this year; good science college. Fees are approximately 40k/year after minimal federal scholarship. I was shopping for some student loans, and I see some $ amounts that has me.

One of the sites I applied for a loan is sofi.com.

For a 40k loan with a 15 year loan term, based on different options -

student has to either pay $515.86/mo (OR) $493.64/mo (OR) $386.06/mo (OR) $378.38/mo 6 mos after graduation. This is only for the first year loan, assuming the same tuition and interest rate for the remaining 3 years, they step out of college with a debt of > 200k. Their monthly payment is a minimum of $2,000.00/mo for 15 years. All these loan types accrue the interest to the loan principal during the school term.

Is this the reality of College Education? Why are people not going for Federal subsidized loans since DoE pays interest on those loan types during school year? Are there any gotchas there?

Any suggestions (or) good links for college loan process is appreciated.

Statistics: Posted by mksanjay — Sat Aug 03, 2024 7:52 pm — Replies 9 — Views 817

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