Apr 3, 2007, 11:27 AM
$75000 at 3% interest is a $500 per month payment for 188 months! That's more than fifteen years. If you pay $300 per month it will take almost 32 years! That doesn't include the extra costs that you will incur because you have higher interest rates on everything else (credit cards, mortgage, car loans) due to a bad debt-to-income ratio.
That is a crazy amount of debt for anything less than a JD, an MD or maybe, maybe an MBA.
I would also bear in mind that the current stafford (federal) loan rate is 6.8%, with private loan rates for students starting at the prime rate (8.25%), with some adding as much as 6% to that. However, I think subsidized stafford loans are a great idea since the government pays the interest while you're in school, especially if you have reason to believe that you'll be able to pay the money back quickly while in school or just done with it (and I don't mean from adjunct pay necessarily. I'm talking more about having savings in the bank or investments that you plan on letting grow during this time, while your loan amount stays static). But you can only take out so much of these loans anyway.
"Oh, all the poets they studied rules of verse
and those ladies, they rolled their eyes"
(This post was edited by SweetJane on Apr 3, 2007, 1:05 PM)