So you mean to tell me Student Loan interest rates are now higher than my Mortgage Loan? That’s that bull****! Over the weekend I was listening to talk radio and there was a major debate on the July 1st rate increase that doubled interest rates from 3.4% to 6.8% #ThatsThatBullS***
Of course this comes after the Senate failed to reach a compromise by the July 1st deadline. So of course the republicans are blaming the Democrats – the Democrats are blaming Republicans and everyone is blaming the President. All that drama aside, here’s the problem. The cost to attend college is higher than it has ever been and this rate hike is a major blow for middle and low income students. Paying these loans means that students will have to seek careers that pay higher wages, putting other careers such as teaching and civil service at risk because these types of careers may not provide the means to pay back these loans on time.
Let’s break this down. Let’s say you’re 18 and you decide you want to attend the University of South Carolina (GO COCKS!), if you’re an In-State student, it costs you approximately $20,003 per year to attend USC, if you’re a Nonresident, the costs are approximately $37,159 per year here’s the breakdown:
| Estimated expenses | S.C. Resident | Nonresident |
| Tuition and Technology Fee* | $10,488 | $27,644 |
| Housing | $5,702 | $5,702 |
| Meals | $2,835 | $2,835 |
| Books and Supplies | $978 | $978 |
| Total | $20,003 | $37,159 |
**USC was rated by Princeton as “150 Best Value Colleges for 2013” #GoCocks!
These costs don’t include other items you need while in college like soap, toilet paper, club money and hairdos! (Just kidding parents *wink)
Seriously though, if you are an In-State student, and you manage to get through college in 4-Years, your principal owed at the end of your 4 years will total $80,012. If you plan on paying this loan back in 10 years, your monthly Student Loan payment at 6.8% will be $920 per month and your Total Interest Cost is $30,481. The MINIMUM annual salary to handle these payments (pay off in 10 years) will need to be $138,117 per year. The reality of this situation is that many students don’t pay their loans off in ten years. Here’s the Breakdown:
| Estimated expenses | S.C. Resident | Nonresident |
| Tuition and Technology Fee* | $10,488 | $27,644 |
| Housing | $5,702 | $5,702 |
| Meals | $2,835 | $2,835 |
| Books and Supplies | $978 | $978 |
| Total | $20,003 | $37,159 |
| 10 Year repayment | 120 Months | 120 Months |
| Interest Rate | 6.8% | 6.8% |
| Principal Amt of Loan (4 yrs) | $80,012 | $110,576 |
| Monthly Payment for 10 yrs | $920.78 | $1272.51 |
| Total Interest Owed | $30,481.68 | $42,125 |
| Minimum Salary need to handle Repayment | $138,117/yr | $190,876 |
So this is the reality of the situation and of course, this doesn’t take into account any Scholarships, Grants or money awarded. This is not to scare any young people, Syllabus Magazine encourages students to go to school, but we also are encouraging you all to be smart about money while you are in college. While senate tries to debate this situation, those of you who are considering attending school, consider other options:
Scholarships/Grants
- apply early
Armed Forces/Reserves
- helps pay for college & believe me, when you get in the corporate world, BIG COMPANIES LOVE MILITARY CANDIDATES – these are the 1st applicants large companies look at. TRUST ME – I KNOW!
GET A JOB
- get a dang job! Parents if you’re telling your kids you don’t want them to work while they’re in college, this is just a bad idea. This is not how it works in the real world – so get out there and get a job!
Don’t forget about the great Community Colleges out there
- Community colleges are great, and more personable. Can save you in costs in the long run
Learn a Trade
- College isn’t for everyone. Many successful entrepreneurs didn’t attend or finish. So don’t be afraid to explore other options – that’s just real talk
I have my own personal feelings about higher education that I will save for another time. But people remember, College is just a stepping stone to your future, its not the solution to a great life. Be open about what you plan to do for your future, there’re millions of opportunities out there. Good Luck – you’re going to need it.
I calculated my Cost using this website, http://mappingyourfuture.org/paying/standardcalculator.htm
