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Is loan for college a good option?

This is because I planing of applying for a loan.#computer-science

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Susan’s Answer

You should ask your high school guidance counselor for assistance in understanding what financial opportunities are available to you. Also, many college financial aid offices are available to discuss what financial aid exists even before you've been admitted so reach out to the colleges you're interested in to see what information they can provide. A loan might make sense if you think you have a career opportunity to repay the loan, or that the job may be able to help with the loan. For example some companies have begun offering student loan repayment benefits. Other times, working in an underserved area might entitle a person to student loan deferrals. If you do apply for a loan, make sure you think about the interest rate and repayment terms. Too many people take out loans that are too expensive for them, and many for-profit schools have bad reputations for selling loans more than education. But these are things you can get information about from your high school guidance office or the college financial aid office. Good luck!
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Vincent’s Answer

In addition to repayment schedule and loan factors, make sure you submit a FAFSA to ensure you're eligible for all types of financial aid.

https://fafsa.ed.gov/

There are many different loan types so research what works best for you / what you qualify for. In general, loans via the government (Federal loans, Stafford loans, etc.) have favorable interest structure and usually offer deferred payments (ex: no repayment until you finish school). Also take note of fixed interest rate vs. variable interest rate loans. More research can be done here:

https://studentaid.ed.gov/sa/types/loans/federal-vs-private
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Sarah’s Answer

Hi there - A loan can be a good option to pay for college - but think about a few things before you take on a loan. Remember that the loan has to be paid back in full, plus interest, after graduation. There are some great calculators out there that you can use to help think through the type of salary you will need to pay back for different loan amounts: Here is an example of one of those calculators - http://www.finaid.org/calculators/loanpayments.phtml

Also, look for work/study options to pay for school, as well as scholarships and part time job salary. Using a combination of all of those things can be a great way to pay for school!
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Joanne’s Answer

My motivation is the math behind the repayment

Assume you have 20,000 in student debt ...

Upon graduation (currently it's 6 months after), you have to start paying back $200/month for 10 years.

The more debt, the more payback (the value seems to be around 1% i.e. $40,000 = 400/month or the equivalent of a car payment.

So if you take out $100,000, you'll be paying $1000/month which is the equivalent to housing in many areas of the country.

As folks have previously stated, choose your financing options wisely (there are scholarships, grants, work opportunities, etc ...)

Joanne
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