College parents - would you consider taking out student loans?

[mjkacmom]

That's Stafford, and while I agree that their limits are presently too low; there are other private programs with higher limits. Also, there is a difference between co-signing for a loan taken out by the student, and actually taking out the loan yourself but handing the money over to the student -- and THAT is what I'm fundamentally opposed to.

I agree that it stinks when a kid cannot go to the school of his/her choice at the time of his/her choosing because of financial limitations, but unfortunately, we don't all have the same resources, and some will have to deal with the difficult reality of limiting school choices and/or changing timelines before goals can be reached. Sometimes you even have to move. (I know a young lady who did that; her parents could not afford their state school, so she moved to another state with lower tuitions, worked for a year to establish residency, then got her education for a more affordable price that her parents could actually manage. Was it the easiest of strategies? No, probably not, and she graduated a year later than most of her peers, but she graduated with a debt load that was a lot more reasonable for the job that she was aiming for (she's a teacher.)

What state? It’s almost impossible to do that before turning 24, residency is the state where the parents live. By the time my daughter graduates, she will have been renting an apartment in another state for 3 years, she still isn’t eligible for in state tuition. Fortunately she gets a merit scholarship bringing tuition down to almost in state anyway (otherwise she’d be at our flagship). One of my kids is going to Clemson in the fall, besides NC, SC or Georgia, NJ students are the next biggest population enrolled. Why? Because our in state colleges are so expensive you might as well go OOS (again with merit).

 

[mefordis]

What state? It’s almost impossible to do that before turning 24, residency is the state where the parents live. By the time my daughter graduates, she will have been renting an apartment in another state for 3 years, she still isn’t eligible for in state tuition. Fortunately she gets a merit scholarship bringing tuition down to almost in state anyway (otherwise she’d be at our flagship). One of my kids is going to Clemson in the fall, besides NC, SC or Georgia, NJ students are the next biggest population enrolled. Why? Because our in state colleges are so expensive you might as well go OOS (again with merit).

Yep my daughter applying to schools in TX, FL and LA and they are very inexpensive compared to the colleges in the northeast.

 

[nicolita3]

You keep making analogies that are not even relevant. Food and antibiotics are necessities. College education is not.

Okay, it's not necessary for living, but can be a matter of quality of life. Sure someone can go to a trade school but even those are expensive. Community colleges may also require the use of student loans. Minimum wage cannot get a person a living wage. Why are you so against helping others?

 

[JLTraveling]

All federal student loans are automatically in forbearance with no interest accumulations. Borrowers had to Opt-OUT of that. I think that started in April 2020 and goes through at least September 2021. She shouldn't have had to do anything.

Not all of them. I have federal student loans, but for reasons known only to the powers that be, about half of the federal student loans out there are no longer actually owned by the government, but by Navient. Mine are in that half. Navient gave forbearance for something like three months at the beginning of the pandemic, and then started collecting again. I could apparently reconsolidate into a new actual federal loan, but I'm currently in the income based repayment program and have been for several years. If I reconsolidate, it restarts the clock on my repayment program. A lot of us are screwed through absolutely no fault of our own.

 

[Mackenzie Click-Mickelson]

Okay, it's not necessary for living, but can be a matter of quality of life. Sure someone can go to a trade school but even those are expensive. Community colleges may also require the use of student loans. Minimum wage cannot get a person a living wage. Why are you so against helping others?

I think if you probably kept other things out of the comparison it may change the discussion. Antibiotics have nothing to do with education even if the parallel you are trying to draw is the necessity (or improvement to living) providing antibiotics to someone can have/be. Food or lack there of have nothing to do with education even if the parallel you are trying to draw is you wouldn't deny someone food or aid to get food.

I do sorta get where you're coming from but those other things added in take the discussion to something that isn't the same as what the student loan forgiveness would be about

 

[Mackenzie Click-Mickelson]

Not all of them. I have federal student loans, but for reasons known only to the powers that be, about half of the federal student loans out there are no longer actually owned by the government, but by Navient. Mine are in that half. Navient gave forbearance for something like three months at the beginning of the pandemic, and then started collecting again. I could apparently reconsolidate into a new actual federal loan, but I'm currently in the income based repayment program and have been for several years. If I reconsolidate, it restarts the clock on my repayment program. A lot of us are screwed through absolutely no fault of our own.

Which can be confusing to someone because Navient is the servicer of my loans but does not own my loans (the Federal ones). I had 5 federal loans (4 subsidized 1 unsubsidized) and all qualified for the forbearance. I have kept it in forbearance as a cushion but have been able to pay each month what I'm owed because if I don't my end date of when I'm done paying just gets longer and longer. My husband has done the same with his loans which used to be serviced by Mohela and were transitioned over to Navient last year or the year before can't remember but are qualifying owned by the government ones.

 

[mom2rtk]

What state? It’s almost impossible to do that before turning 24, residency is the state where the parents live. By the time my daughter graduates, she will have been renting an apartment in another state for 3 years, she still isn’t eligible for in state tuition. Fortunately she gets a merit scholarship bringing tuition down to almost in state anyway (otherwise she’d be at our flagship). One of my kids is going to Clemson in the fall, besides NC, SC or Georgia, NJ students are the next biggest population enrolled. Why? Because our in state colleges are so expensive you might as well go OOS (again with merit).

At Mizzou you can gain residency after a year. There are certain criteria (staying over the summer, and a minimum amount of local earnings) but you can do it. Lots of students do. It was one of the more common questions when the campus shut down for Covid last year.

My daughter's roommate is a sophomore and has qualified.

 

[wvjules]

Not all of them. I have federal student loans, but for reasons known only to the powers that be, about half of the federal student loans out there are no longer actually owned by the government, but by Navient. Mine are in that half. Navient gave forbearance for something like three months at the beginning of the pandemic, and then started collecting again. I could apparently reconsolidate into a new actual federal loan, but I'm currently in the income based repayment program and have been for several years. If I reconsolidate, it restarts the clock on my repayment program. A lot of us are screwed through absolutely no fault of our own.

Mine are through Navient but the forbearance was automatic for me. And it's still in forbearance until September. It started automatically and has continued automatically. Wonder why they are different?

ETA: What MCM said! lol

 

[Mackenzie Click-Mickelson]

Mine are through Navient but the forbearance was automatic for me. And it's still in forbearance until September. It started automatically and has continued automatically. Wonder why they are different?

Because it's likely Navient is just the servicer of the loan rather than owning the loan.

 

[wvjules]

Because it's likely Navient is just the servicer of the loan rather than owning the loan.

Yea, I just saw your reply.

 

[Mackenzie Click-Mickelson]

Yea, I just saw your reply.

I was too quick in my reply to your comment

 

[JLTraveling]

Because it's likely Navient is just the servicer of the loan rather than owning the loan.

I think that's correct. Navient services all of them, but only owns half. And the borrowers whose loans Navient owns were never consulted, never agreed to anything, and at least in my case, only found out about it when we learned the pandemic forbearance didn't apply. Makes me really angry, actually. There's a reason I didn't take out private loans, but that's effectively what I have now.

 

[NotUrsula]

What state? It’s almost impossible to do that before turning 24, residency is the state where the parents live. By the time my daughter graduates, she will have been renting an apartment in another state for 3 years, she still isn’t eligible for in state tuition. Fortunately she gets a merit scholarship bringing tuition down to almost in state anyway (otherwise she’d be at our flagship). One of my kids is going to Clemson in the fall, besides NC, SC or Georgia, NJ students are the next biggest population enrolled. Why? Because our in state colleges are so expensive you might as well go OOS (again with merit).

Florida. My understanding is that she was still considered technically a dependent, financially speaking, but was eligible for in-state tuition because she had lived & worked in FL full-time for a full year without being enrolled in any educational institution. (That is the key in Florida; you have to work full-time, and you cannot take ANY classes while waiting to establish residency.)

My DS graduated 2 years ago and now has FL educational residency as well, should he wish to apply to graduate school (though in his case it really doesn't matter any more, because he turns 24 in just a little while.)

BTW, Arkansas is very popular for less-specialized majors, because they have very lenient residency rules, and they even help you along if you come from a bordering state and have decent grades, by discounting your tuition to the in-state rate your freshman year. Fayetteville is gorgeous, too; nice bonus if you like the outdoors.

 

[QueenIsabella]

Okay, it's not necessary for living, but can be a matter of quality of life. Sure someone can go to a trade school but even those are expensive. Community colleges may also require the use of student loans. Minimum wage cannot get a person a living wage. Why are you so against helping others?

You make it sound lik e they would be destined to work at minimum wage their entire life. Not true--go to work for Walmart, or most any place, and work hard to do your job right. There will be raises and promotions along the way. Eventually, you could be a store or even regional manager. A lot of places have tuition reimbursement, too, so you could go to school while working there.

I get sick and tired of people acting like it's impossible to get ahead without huge government handouts. Learn to fish! Start a business! Find a way to support yourself, with or without a college degree!

 

[r1lissa]

Okay, it's not necessary for living, but can be a matter of quality of life. Sure someone can go to a trade school but even those are expensive. Community colleges may also require the use of student loans. Minimum wage cannot get a person a living wage. Why are you so against helping others?

You just made a VERY bold assumption. I'm not against helping others. I am against people juking the system.
Do you not understand what the OP was suggesting? He was talking about taking out loans that his child DOES NOT NEED in order to have them possibly written off.

 

[r1lissa]

You make it sound lik e they would be destined to work at minimum wage their entire life. Not true--go to work for Walmart, or most any place, and work hard to do your job right. There will be raises and promotions along the way. Eventually, you could be a store or even regional manager. A lot of places have tuition reimbursement, too, so you could go to school while working there.

I get sick and tired of people acting like it's impossible to get ahead without huge government handouts. Learn to fish! Start a business! Find a way to support yourself, with or without a college degree!

AMEN. My spouse quit school in 10th grade and started working along side a tradesman. He worked his way up to earning his Masters Electrical License. He makes $30K more a year than me, and I have a Bachelors Degree.

 

[QueenIsabella]

AMEN. My spouse quit school in 10th grade and started working along side a tradesman. He worked his way up to earning his Masters Electrical License. He makes $30K more a year than me, and I have a Bachelors Degree.

We have a friend who's a general contractor--he's done some excellent work for us. He just bought himself a Lamboghini. He's never been to college, but he's always looking for new opportunities to enhance his business. That includes buying specialty equipment and going to training to use it.

 

[Mackenzie Click-Mickelson]

Way too many people point to other careers without realizing that someone has to do the other careers too. There shouldn't be a stigma either way but people still do it. Either it's a stigma towards tradespeople or a stigma towards those who have a degree in what some random person has decided isn't worth jack. No wonder our education system has issues people are so busy mocking the other person for whatever education path they decide to take.