Student Loans / Loan Forgiveness, etc.

[SLPtoBEweee]

As many of us are trying to decide just how much debt is too much, I wanted to ask if anyone has any good resources regarding loans and any type of programs for loan forgiveness.  And, how are you guys deciding what amount of debt is "doable" for you?  I was lucky enough to not have any debt from undergrad and I am feeling like a deer in the headlights when it comes to all these decisions regarding how much debt to incur..... Anyone have any advice?

Thank you!  And best of luck to everyone still waiting & those making decisions!

[mystiqueSLP]

I'm considering the same things but I think considering your future circumstances and the kind of person you are when it comes to money is important. I've heard of people with a lot of loans who pay them off quickly and people with relatively small loans who take decades to pay them off.

 

In my future, I know for sure that I can probably live with my parents for a few years (even if I don't want to) and save up to pay off as much of my loans as quickly as possible. I know that I don't like spending money and will have no problem living without cable or the latest fashion trends. I will be quite happy in a room with a bed, Internet, running water, and food.

 

And personally, I'm also thinking about what experiences are worth having and if I want to risk reapplying and possibly getting in nowhere next time. Despite my hesitation with its tuition, I think NYU would be fantastic for me and I think going to school and working in the city will force me to grow up quickly since I went to a nearby state school.

 

I know NY has a loan forgiveness program with the Dept of Education but I'm not clear on the specifics.

[SLP_boston]

I am in the same boat! I don't have undergrad loans but I also don't have any money saved for grad school. I'm terrified of having 100,000 plus in loans, but I also don't want to settle for a program that isn't as highly ranked. Tough decisions!! ahh

 

Also- 

I wonder if more loan forgiveness plans will be available by the time we graduate..

[SLPzs91]

I heard of something while I was at the MGH open house. As an SLP, if you work in a non-profit setting for 10 years out of graduation, all of your remaining loans will be forgiven completely. This is apparently nationwide, so it could help people here.

[lele]

I've also heard of the program that FutureMSSLP mentioned. If you work in a public school or not-for-profit hospital, then you can definitely take advantage of it. I'm not sure if it involves some kind of application or if you automatically qualify once you start working in a non-profit setting. My aunt (in a different field) is paying back her loans with this program, and she said one of the downsides is that they make you pay a lot each month for those ten years, but the good thing is that you know that after 10 years, you'll be debt free

[katieliz456]

I'm in the same boat-- no undergrad loans, and freaking out about the crazy tuition costs!

 

My personal guideline (totally arbitrary, and just designed to give me peace of mind) is that I will only take loans for tuition, not for living expenses.  For me, personally, that seems easier to justify.  I plan on working my butt off this semester and for a full 3 months this summer to continue saving up money for rent, books, groceries, etc.  I also have some leftover college savings that will help me out 1st semester. I realize this isn't possible for everyone, especially those going to school in expensive places like Boston or NYC!

 

The repayment plans do seem pretty nice, and they're legit!  However, I think that with our starting salaries, most SLPs would have loans payed off within 10 years, regardless.  I also don't plan on definitely working full-time for 10 years-- I might end up taking time off to raise a family or somethings.  

[tlsstc]

This is the NYC program:

http://www.teachnycprograms.net/getpage.php?page_id=60

 

There are a few other programs, including a loan forgiveness.

http://www.teachnycprograms.net/

 

For the scholarship, you agree to work for a NYC public school for 2 years for every year of school.  I went to an info session for it at the UFT (well, it was for the western kentucky distance pgm but they also talked about the scholarship program) and the # of scholarships they give depends on how much $ is available and also the mix of schools - so if they award to all Columbia or NYU for example there will not be as many people receiving scholarships.  The DOE's budget situation is dire, to put it mildly, so not sure how many will be awarded this year.  Also I have heard that they really prefer bilingual (spanish). 

 

Here is info on the federal public interest loan forgiveness program

http://www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

 

Its really confusing! A lot of details and conditions.  It only cancels federal student loans, not private loans.

 

I have about $20k left in law school loans and I do not particularly want to take out more but I think I will have to.  I think that federal loans usually have significantly lower interest rate than private, and there are a lot of different ways to structure your payments so that you can pay a lot or a little each month.  

[occamstoothbrush]

Do you have to work in the same place for 10 years to be eligible?  And if not, can you not have any periods of unemployment in those 10 years?

[Dibbels81]

Assume $110 a month payment per 10k borrowed.  My personal comfort level is 50K total loan amount.  From what I gathered, starting salary should be around 60k a year (medical side, West coast).  Uncle Sam is going to take 25% of that, and depending on whether or not you have state taxes, another 5% or so.  So 60K X .7=42K take home pay.  Even with a budget of 2k a month, you still have a lot of room to make extra payments on the loan.  When the checks start coming in, resist the urge to buy the new car, the nice condo, restaurants, babies, etc.    Continue to live that spartan college existence and you can be debt-free within a few years of graduating.     

[SLPtoBEweee]

So, if I were to say, have $150K in debt, I would probably be looking at around $1,600 a month of payments?  That makes me sick to think about.  That is probably at leat half of what I would get paid a month.......

[mystiqueSLP]

Assume $110 a month payment per 10k borrowed.  My personal comfort level is 50K total loan amount.  From what I gathered, starting salary should be around 60k a year (medical side, West coast).  Uncle Sam is going to take 25% of that, and depending on whether or not you have state taxes, another 5% or so.  So 60K X .7=42K take home pay.  Even with a budget of 2k a month, you still have a lot of room to make extra payments on the loan.  When the checks start coming in, resist the urge to buy the new car, the nice condo, restaurants, babies, etc.    Continue to live that spartan college existence and you can be debt-free within a few years of graduating.     

 

I agree completely. It'll be tough but just penny-pinch your way through and you'll be fine.

 

I'm really overly optimistic though. I have about 25k in undergrad loans in addition to my future 100k grad school loans :/

[puertosurf]

SLPtoBEweee,

 

I am also looking at around $150K in debt. There is no way I could afford 1.6-2K a month in payments, especially since the income cap for SLPs in large cities seems to be 110K, with the average much lower. The only way I could afford this debt is with the government's Pay as you Earn 20 year forgiveness program - monthly payments of 10% of your income for 20 years, regardless of employment status / where you work, and then the remaining debt is forgiven. If/when I get married, there is the option of filing married filing separately so that your spouse's income does not count as part of your income.

 

However, I'm not sure what impact this program will have on my life - like credit rating, ability to get a mortgage, something that would make me want to file jointly? I read one horror story about the predecessor to the Pay as you Earn program where someone completed all his paperwork on time but was still denied. If anyone has any insights, I'd appreciate it!

 

Here is what I used to calculate - http://www.finaid.org/calculators/

 

As others have mentioned, there is also the 10 year public service program, but I don't think I'll be employed for 10 years by a public school / nonprofit.

 

There is also the strange thought that since the gov will be forgiving the eventual balance + interest, should I even be saving now and planing on using up all my savings/stocks to pay for my first year?

[mystiqueSLP]

SLPtoBEweee,

 

I am also looking at around $150K in debt. There is no way I could afford 1.6-2K a month in payments, especially since the income cap for SLPs in large cities seems to be 110K, with the average much lower. The only way I could afford this debt is with the government's Pay as you Earn 20 year forgiveness program - monthly payments of 10% of your income for 20 years, regardless of employment status / where you work, and then the remaining debt is forgiven. If/when I get married, there is the option of filing married filing separately so that your spouse's income does not count as part of your income.

 

However, I'm not sure what impact this program will have on my life - like credit rating, ability to get a mortgage, something that would make me want to file jointly? I read one horror story about the predecessor to the Pay as you Earn program where someone completed all his paperwork on time but was still denied. If anyone has any insights, I'd appreciate it!

 

Here is what I used to calculate - http://www.finaid.org/calculators/

 

As others have mentioned, there is also the 10 year public service program, but I don't think I'll be employed for 10 years by a public school / nonprofit.

 

There is also the strange thought that since the gov will be forgiving the eventual balance + interest, should I even be saving now and planing on using up all my savings/stocks to pay for my first year?

 

20 years? I don't know if I could have loans hanging over my head for 20 years. It's a good backup plan but it doesn't seem like it's guaranteed, especially with that horror story.

[SLPtoBEweee]

20 years? I don't know if I could have loans hanging over my head for 20 years. It's a good backup plan but it doesn't seem like it's guaranteed, especially with that horror story.

 

I know.  20 years I can handle.  I know plenty of people who have had loans for 20 years and after a few years when you have a good amount of money flowing in, they say you just get used to paying each month and it's not that bad.  I just don't want to be penny pinching for 15-20 years.  While money is not the most important thing in the world, I definitely want to be skipping out on family vacations and all of that until I am 45 years old.  Some people don't seem to be phased by large amounts of debt..... Others seem to be running as fast as they can from it.  I feel like I am somewhere in the middle.  I want to go to the school that is best for me, but I am not the type of person who can penny pinch for 10 straight years and be happy.  I like to shop!!!

[mystiqueSLP]

I know.  20 years I can handle.  I know plenty of people who have had loans for 20 years and after a few years when you have a good amount of money flowing in, they say you just get used to paying each month and it's not that bad.  I just don't want to be penny pinching for 15-20 years.  While money is not the most important thing in the world, I definitely want to be skipping out on family vacations and all of that until I am 45 years old.  Some people don't seem to be phased by large amounts of debt..... Others seem to be running as fast as they can from it.  I feel like I am somewhere in the middle.  I want to go to the school that is best for me, but I am not the type of person who can penny pinch for 10 straight years and be happy.  I like to shop!!!

 

I was planning to seriously penny pinch for 5-7 years and hopefully make/save enough money to just pay it all off before 10 years. I mean, there's still a life to live and a future to plan. What about a new house or car or vacations or kids? Having loans forgiven after 20 years would be just a waste of time for me.

 

My parents are scared to death for me. I'm more blasé about it, like, what else can I do? It's not like this is a silly investment.

[SLPtoBEweee]

I was planning to seriously penny pinch for 5-7 years and hopefully make/save enough money to just pay it all off before 10 years. I mean, there's still a life to live and a future to plan. What about a new house or car or vacations or kids? Having loans forgiven after 20 years would be just a waste of time for me.

 

My parents are scared to death for me. I'm more blasé about it, like, what else can I do? It's not like this is a silly investment.

 

I agree.  I am almost 27 now though, so if I penny pinch for the next 7 years, I will be waiting a little longer than I would prefer to start a family!  That's kind of what worries me.  I don't think I would mind penny pinching if I were 22 and knew it would be over after that.  Money makes things so difficult!

 

My parents are SO scared for me - it makes me nervous that it doesn't freak me out as much.  They think I'm crazy to take out any loans, much less $150K...........

[mystiqueSLP]

I agree.  I am almost 27 now though, so if I penny pinch for the next 7 years, I will be waiting a little longer than I would prefer to start a family!  That's kind of what worries me.  I don't think I would mind penny pinching if I were 22 and knew it would be over after that.  Money makes things so difficult!

 

My parents are SO scared for me - it makes me nervous that it doesn't freak me out as much.  They think I'm crazy to take out any loans, much less $150K...........

 

Ahh...I'm 21 but I want to start a family before I'm 30 (I would hate to be an old mom!). And this education system is insane, trying to make us pay over 100k for classes we still have to stress over doing well in!

 

My uncle was able to go to NYU Poly and pay back his loans right away so my parents think I'll be ok if I just follow his footsteps. But he graduated in electrical engineering just when computers and the Internet took off so he got super lucky :/

[puertosurf]

I guess I'm thinking the opposite way from you guys - 20 years is a long time, but I think I will be able to live very comfortably - have kids, take vacation -  while paying off the loans. The only thing I would worry about is my ability to qualify for a mortgage.

 

In contrast, when I look at 10 year plans, if I am paying back 1.5-2K a month I will literally be poor. If I assume I will make ~70K, that's about 4K a month in take home pay. I cannot pay for rent, gas, groceries, and have a kid on 2K a month! (Assuming I live in a big city like NYC)

 

When I graduate I will be 27 and due to personal/family genetics I must have children before I turn 35. So 10 year payment plans are not possible for me. It's unfortunately either the 20 year plan or no grad school at all for me :/

 

Btw guys, the thought of this much debt terrifies me! I don't think I conveyed this. I am considering not going to grad school because of it.

Edited April 1, 2013 by puertosurf

[Pronounce]

  As the parent of a future to be SLP, I've been lurking around this board for future programs for my daughter.  I have to say  $150,000 is way too much debt.  The interest starts accruing the day you take the loan, so add another 15,000 or so before you graduate.   $165,000 is 2.5 - 3 years starting salary.  

 

 Your future will be crippled by the debt. That is a mortgage payment and you won't even own a house.  In fact you won't be able to get a mortgage because of your debt to income factor.  You'll be living in crappy apartments or with parents or roommates for a long time.  

  If your only option this year is too expensive, change your plans; work for a year and save, or apply to cheaper schools next year, or apply to schools where you're likely to get funding, or move to a state with lower tuition and work for a year to establish residency.  Don't let your dream turn into a nightmare.  Apply to affordable programs that you can like and be accepted to.   

[puertosurf]

Pronounce, I don't know much about mortgages. Does the debt to income factor count the total amount of debt you have, or just what you owe each month? I would be paying 10% of my monthly income. I definitely want to be able to get a house in the future!

[katieliz456]

  If your only option this year is too expensive, change your plans; work for a year and save, or apply to cheaper schools next year, or apply to schools where you're likely to get funding, or move to a state with lower tuition and work for a year to establish residency.  Don't let your dream turn into a nightmare.  Apply to affordable programs that you can like and be accepted to.   

Pronounce, I really appreciate your advice & do agree with it. I hate the idea of taking out huge loans.  However, it is not always so easy to predict what schools we "can be accepted to" and which programs are "likely" to offer funding.  The cheaper, state schools tend to be more competitive because EVERYONE wants to get a cheap graduate education (I'm thinking NY public universities vs. expensive schools like NYU and Columbia).  

 

In my state, there are only 3 universities with the SLP program-- 2 are highly ranked and very competitive. The 3rd is low-ranked, but only accepts a very small cohort each year.  There are also a lot of students with families who cannot move cross-country.  So although this is good advice, attending cheaper state schools is not always an option for everyone.

[BostonTeach]

I agree, Katieliz456. There are just so many factors that need to be considered when determining what you can afford (or, rather, should pay) for grad school. My husband has a job that we wouldn't want him to leave and I have family/child care issues to consider. There are no state universities in the Boston area that have SLP programs. When considering future mortgage issues (if that is a concern for someone) you should think about where you may end up. For instance, It's a lot more expensive to live on the east/west coast in the US. Everyone's situation is different and you need to make the best decision for your own future. Good luck, everyone! : )

[mystiqueSLP]

I also agree with katieliz456. It's hard to plan on something so subjective like being accepted into a cheaper school or a school that is likely to offer funding. Many people here have applied multiple times, demonstrating how competitive this field is. Putting another restriction, like applying to only cheaper schools, will only make it that much harder to receive an acceptance.

 

I understand that 150k in loans is a lot though and should be cause for hesitation but what would anyone recommend for someone in my situation? I was rejected from almost every school I applied to and was barely accepted by one school. My GPA was probably why I was rejected and also not something I can easily fix. I could reapply but, from reading posts on this board, reapplying does not guarantee a future acceptance. We've already heard stories of adcomms accepting or rejecting a person based on whether they woke up on the right/wrong side of the bed that morning so should I really risk reapplying when I've already been accepted (albeit, by a very expensive school)?

[katieliz456]

Mystique, if i were you, i'd be really hesitant to take the risk of applying again :/ The universities keep churning out more and more SLP undergrads, so it's only gonna get more competitive.  

 

NYU is crazy expensive, but if you can get a GA position, or work part-time, and do things like live with roomies or live outside the city and commute, it might be a bit more tolerable.    

[mystiqueSLP]

Mystique, if i were you, i'd be really hesitant to take the risk of applying again :/ The universities keep churning out more and more SLP undergrads, so it's only gonna get more competitive.  

 

NYU is crazy expensive, but if you can get a GA position, or work part-time, and do things like live with roomies or live outside the city and commute, it might be a bit more tolerable.    

Reapplying is the last thing I want to do. If I didn't get in anywhere, I definitely would but the fact that I did makes me feel extremely lucky.

I'm commuting from home so it's not that bad, pretty comparable to other programs. GA positions are only for PhD students at NYU but I did get some work-study and I'll try to work part-time at my current job so I don't think it'll be that bad.

I'm just really defensive now because whenever I mention being accepted by NYU, people would just say how expensive it is or how the program is apparently not great. It makes me sad to think I got accepted into a program that isn't great. I haven't seen anything like that being said about the other programs here so it makes me wonder if it was all a mistake. I just don't understand how bad this program is if it has been accredited by ASHA for the past 20 years and it still has students applying and attending every year.

 

Personally, I feel really, really grateful to NYU for giving me a chance with my GPA. I want to attend even more because they somehow overlooked my terribly low overall of 3.28 and it's just hard to get excited when everyone else just keeps bringing up the negatives about this program to me.

Edited April 3, 2013 by mystiqueSLP