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SalPane

Apr 3, 2007, 2:45 PM

Views: 9760

Re: [jaywalke] DEBT

In Reply To

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.

That changes my nightmare scenario quite a bit. BTW, I'm using the calculators at Bankrate.com, if anyone wishes to check their own situation.

$75K at 6.8% paid at $500/month is almost 28 years! ($93K in additional interest!)

At $1000/month (which most folks can't swing) it's 8 years and you're paying $22K in additional interest.

At $400 a month that debt will last forever, because you aren't even covering the interest.

That's just crushing.

That's only relevant though if you don't find any funding at all during your two year stay. I say go and look for funding outside of the writing department. Have you thought about doing part time office work for another department? As long as you work as staff somewhere in the school they will partially fund you. Most schools pay 80% of their employees' tuition fees.

I'm almost positive I'm going to Pitt's MFA program next year and their funding is historically terrible. But after talking to a lot of current MFA students there they've all told me they've been able to find funding that way or after their first year. And I'm in the same boat as you. I already have 20K racked up in debt. However, what if you apply again next year and don't get in? That's a huge risk and the MFA mistress is fickle at best. My bet is if you're going for an MFA money isn't the most important thing to you anyway. And although being able to financially exist is important, 75K is just the maximum amount of debt you could accrue. There's a decent chance it'll be signifcantly less.

(This post was edited by SalPane on Apr 3, 2007, 2:47 PM)

Edit Log:
Post edited by SalPane (Novice) on Apr 3, 2007, 2:47 PM