Does This Make You Feel Safe?

Last week, I officially sent my enrollment deposit to the University of Notre Dame. Somehow, I thought everything after making the decision would be all down hill - however, there still lies the question of "how am I going to pay for it?".

When I wrote the first blog entry while filling out federal aid papers, I didn't fully understand exactly what I was doing. I think I was under the impression that receiving federal aid meant the government would give me money because I needed it - it didn't really occur to me that they would, but I'd have to pay it back, i.e. student loans - I just didn't make the connection.

On Friday night, I had to complete an online loan counseling session that taught me what my federal loan is and when I'm expected to pay it back. I'm getting two kinds of loans, a federal direct loan for $3,500 a year, which is from the U.S. Department of Education, and a federal Perkins loan for $2,400 a year, which comes from the university. In total, I'm borrowing $5,900 annually as of right now - I may have to borrow less depending on variable expenses like transportation and books, etc. The total estimated cost of a year at Notre Dame is about $53,000. For the first year, I'm getting about $32,000 a year on scholarship. Depending on if I decide to do the work study program for another $2,000 a year doing odd jobs for the university, we have to pay the balance of whatever's left.

However, my parents definitely don't have some $20,000 just laying around every year. So how do we make the difference?
Get another loan.

The loan process is actually rather efficient. It sounds rather scary to owe so much money, but the payment schedule is pretty reasonable. Upon graduating from Notre Dame, I'll owe about $24,000. After graduation, I have a six month "grace period" before I have to make my first payment within 60 days of the end of the grace period. I can choose from a range of payment plans that spread the total over 10-30 years. According to the chart, if I choose the standard plan, with my total I'll pay about $300 a month and be done in less than 10 years.

However, I'm not entirely sure where I'm going to get the money for med school...but I think we're just going to have to worry about that later, considering the idea of coming up with another $200,000 is not a very pretty idea.