« on: May 31, 2010, 12:05:27 PM »
Hi, I'm a few months away from being a 1L at NYU. Get to the top of the story, my budget looks like I'll come out of this with 175k of debt. Is that a reasonable amount of debt to carry for earning an NYU degree? I want the facts, not just that its a great school or whatever. What do YOU think you'll be carrying in loans? How do you feel about that?
My mother and I have created a budget for me. The school sets out ~77k as the basic amount of tuition/books/housing/food. However I have other expenses (I understand some could be cut should I really need to make cuts)....we are unsure if we should get rid of my car, although we can insure it for 70% less if I have it parked for a few months at a time. My twin is in graduate school in another state and I live 5 hours away from my actual home.. add money for that.. add at least 1800 for a professional wardrobe (spread over 3 years)... money each year for other clothes.. cell phone bills, the times i break *&^% unnecessarily, and the cost of a several nights out a month with a few drinks at a bar, and the amount I think I'm looking at spending sounds like ...90k a year in expenses. I have an expected contribution but of course I can borrow past that without having to ask for a budget readjustment from NYU's part. So no hassle there. I can just borrow if I want.
I anticipate contributing about 45,000 and my mother 50,000 to this whole experience, leaving me with.. yeah, 175k in loans....
So, I am interested in public interest, and at NYU the LRAP will pay back only a certain amount of money, whatever is required besides stafford loan and your expected contribution to meet their bare bones budget... Amazingly enough, this number works out so that I can borrow about 60k a year over the three years without going beyond what LRAP will cover. With my expected costs beyond my mother's and I's contributions (175 - 3(60))= -5 ... I actually stay just within LRAP's allowable debt burden. So it does seem to me that NYU considers this reasonable.
My fear is that, while it is allowable to have this much debt, many other students will actually carry much less debt. Also, I never think budgets work too well, I'm not a big believe in statistics and accounting's purity... for example my budget includes NO income from myself, just savings, because I have no idea if I'll get a summer job that makes money. So I guess some stuff just will have to play out....
Any advice would be great..