Vent-DD got college financial aid summary

[Melmac]

I'm not too sure how it works in the United States but in Canada some banks offer an "Educational Line of Credit". I was approved for a certain dollar amount every year I was in school (I think it was $10000) that I had access to, if I needed it. It worked like any other LOC but all I was responsible for each month was the interest payment on the money I borrowed (I think it was around 4% of the balance). Payments on the principle of the LOC started 6 months after graduation. The nice part about this type of loan is that I could use the money any way I needed it (i.e. tuition, books, etc). I also had a part-time job and full-time summer job to help with costs. Something like this might work if your DD is set on Penn State. Do they have something like this in the US?

 

[Debbie Jean]

I feel your pain, OP, since as a single parent, I am in much the same situation. My anticipated contribution was over $20,000!

DD (21) went to a CC for a couple of years before transfering to a 4 year private. I was able to pay the CC so only had to resort to loans this past year. I would encourage you to explore any state loan resources that might be available. I took out DD's loans through NJCLASS which are payable over 20 years. The only requirement is that you be "credit worthy". I chose an immediate repayment plan and direct debit from my account so the interest is only 6%, lower than the PLUS would have been for me. The 2% origination fee was also lower.

It's not ideal but at least it's do-able for me. I actually teach at a large State University which DD could attend tuition-free. After much discussion, we came to the conclusion it would not be a good situation for her... but I have to say, it would have made the whole ordeal a lot easier!

 

[Mocharilla]

Seriously, most parents do help their kids rather than making the kids save up their own money for YEARS (which mine did - I never got to spend any birthday or Xmas money, it all went into the college fund) or suggesting Comm. Coll. to keep costs down, or helping their kids apply for grants and loans. It actually bothers me quite a bit, and it contributes to the "me first" sense of entitlement lots of young adults have now.

I agree. I hate the sense of entitlement most kids have.

I went to high school in a very rich district, but was personally OOD. I was surrounded by the kids who got EVERYTHING. I had spent my elementary school years in our public school system, which is VERY bad here. I learned to appreciate things and work for them. When I transfered into the FH district for high school, I was shocked at how much kids not only got, but expected. Almost every student had a car, bought by their parents (the oldest cars were '00 at the earliest), gas paid, everything paid, with parents paying for their college and everything. So, all our class stuff was a LOT of $$$, because the families had it to spend. I went on one big trip in all of my HS years, and that was to NYC, because I was in the theatre program. It was $1000, and I WORKED for that. I was actually the only person on the trip (About 25 kids) who paid for it myself. There were kids who went on the NYC trip every year on their parent's dime. It was rediculous. Almost all my friends got a brand new (like, literally BRAND NEW) car for their 16th birthday. DF and my best friend got slightly-used cars for their 16th birthdays, and their parents both still pay gas to this day (both of their parents said they'd pay it through college). My parents said they weren't buying me a car or paying my gas, but I feel was lucky enough that they said that they would pay for my college up until my AA at a Community College. I was so excited for them to do that for me. It was HUGE. When I told my friends, most of them were like "They don't buy you a car for your 16th birthday, and now they're just paying 2 years at a comm college?! ". I was still ecstatic though!

Anyways, to sum up my rant... kids need to start working for things more!!

 

[Traveliz]

Okay, here's my original post. I just felt silly because it's so darn long.

I used to be a financial aid counselor for a public university until recently. I can tell you that no one understands their family's expected family contribution - if it helps, it's equally unfair to everybody.


Hmm...guesss I wrote a book. Guess I miss my job a little bit since we relocated for hubby's career. It's a tough job, but occasionally someone would tell me that I was helping them realize their dreams of higher education, and that they'd never thought it would be possible. Getting a hug from a stranger suddenly crying happy tears was pretty cool!

Seriously you need to put out a shingle and work as a freelance consultant for parents -- that has to be a market out there that hasn't been tapped and people would pay for that service.

Very helpful post!

Liz

 

[phragmipedium]

Ha! Thank you, TravelLiz. I guess I would just feel badly charging for something that families can get for free. Financial aid offices and FAFSA should be willing to answer the same questions for you! I know it's overwhelming and intimidating, but the best way to overcome that is to learn more about it.

If anyone else has any questions, I'd be happy to answer to the best of my abilities - but certainly your best resource and final answers will have to come from the aid office at the school you choose. Best of luck!

 

[Green Tea]

I agree. I hate the sense of entitlement most kids have.

I went to high school in a very rich district, but was personally OOD. I was surrounded by the kids who got EVERYTHING. I had spent my elementary school years in our public school system, which is VERY bad here. I learned to appreciate things and work for them. When I transfered into the FH district for high school, I was shocked at how much kids not only got, but expected. Almost every student had a car, bought by their parents (the oldest cars were '00 at the earliest), gas paid, everything paid, with parents paying for their college and everything. So, all our class stuff was a LOT of $$$, because the families had it to spend. I went on one big trip in all of my HS years, and that was to NYC, because I was in the theatre program. It was $1000, and I WORKED for that. I was actually the only person on the trip (About 25 kids) who paid for it myself. There were kids who went on the NYC trip every year on their parent's dime. It was rediculous. Almost all my friends got a brand new (like, literally BRAND NEW) car for their 16th birthday. DF and my best friend got slightly-used cars for their 16th birthdays, and their parents both still pay gas to this day (both of their parents said they'd pay it through college). My parents said they weren't buying me a car or paying my gas, but I feel was lucky enough that they said that they would pay for my college up until my AA at a Community College. I was so excited for them to do that for me. It was HUGE. When I told my friends, most of them were like "They don't buy you a car for your 16th birthday, and now they're just paying 2 years at a comm college?! ". I was still ecstatic though!

Anyways, to sum up my rant... kids need to start working for things more!!

This is interesting to read. I don't think my child feels a sense of entitlement, but we do provide everything. He has the car, the computer, the fully paid college. He graduates from HS this year. We didn't fill out the FAFSA because we knew we wouldn't qualify for aid. He has received a merit award from a college which would make the entire tuition/room/board/travel abroad free to us. DH is of the thought that he should make any decision irrespective of costs. If he wants to go to a $45K year school a little more than free school, then he should do it. He thinks money doesn't matter. I disagree. I think the finance of it should play in. DH get annoyed if I try to bring finances into the picture in college decisions when having conversations with ds. He says $ shouldn't factor into the decision. I think $ should be discussed with the student, dh does not. Interesting to read your post. Thanks for sharing your observations. (and yes, we pay all of the gas for the car )

 

[meandtheguys2]

Green Tea, I agree with you. It is teaching the child to look at the whole picture. I hope your husband sees your point eventually.

We have money saved for our kids college. But if DH and I both continue to work at his U. and my college, the kids could attend them (or their affiliates) for free. That said, the deal is if they go to free school, they get the cash to buy their first home.

Very few fields care about the college after the first job. Aside from networking and bragging rights, it just doesn't matter.

 

[shelly3girls]

This is interesting to read. I don't think my child feels a sense of entitlement, but we do provide everything. He has the car, the computer, the fully paid college. He graduates from HS this year. We didn't fill out the FAFSA because we knew we wouldn't qualify for aid. He has received a merit award from a college which would make the entire tuition/room/board/travel abroad free to us. DH is of the thought that he should make any decision irrespective of costs. If he wants to go to a $45K year school a little more than free school, then he should do it. He thinks money doesn't matter. I disagree. I think the finance of it should play in. DH get annoyed if I try to bring finances into the picture in college decisions when having conversations with ds. He says $ shouldn't factor into the decision. I think $ should be discussed with the student, dh does not. Interesting to read your post. Thanks for sharing your observations. (and yes, we pay all of the gas for the car )

I see both sides of your situation. I can understand that for many situations there is not a big difference the exact school you attend. For some though it really matters. If a student is looking at certain career fields or graduate programs, the school makes a huge difference in where they will go upon graduation. Some of the top hiring companies only recruit and high level schools. If you don't have a highly regarded school on your diploma they don't even look at your resume.

I completely agree with your argument about sense of entitlement. My parents paid for everything but my spending money which I earned in a summer job. They had the attitude that school comes first, it was my job. As a result I achieved high and was accepted into every Ivy where I applied. I definitely did not have a sense of entitlement, I worked hard! I was able to have a well rounded resume with high grades, sports, extra curricular activities and charity work all of which are needed to be accepted into a top school. I realize not all parents can provide everything for their kids but I think the kids without jobs during the school year have a definite advantage. Of course, what they do with that time is a whole other thread.

Also, CC is not always the best option even though it is cheaper. Although it may prepare you for many schools it will not get you into a top notch / Ivy League school. I know this is not a big concern for many but it really depends on the student's potential and career plans.

 

[MELSMICE]

I guess I look at it a little differently

$14k -
Room and board at the dorms is probably $6 to $7k of that

So tuition is what? roughly - $8,000

If the student could pay $3,000 from a summer job, which my 17 year old easily made last summer bagging groceries
Mom and Dad are left with $5,000 in tuition. That is more than reasonable for a Higher education. It is less than what I will be paying to send my son to High School next year.

Then you have to decide about Dorm Living. If you do not have the money, I guess you finance it or make a plan for the student to live at home.

It sounds like your kid has an awesome GPA, it is certainly worth a try to go back to the school and see if there is any more money to be had.

My oldest son is a High School Senior this year and I'm just shocked by the number of times I've heard this conversation of the past month and shocked by the number of pretty solid middle class parents I know that have saved nothing at all for their kid's college.

I think all the articles that have been published lately about places like Harvard and Yale making school "free" for the middle class have really skewed expectations.

Unfortunately, not every college is $14,000, which would include dorming.

My DD's got a decent Merit Scholarship & we are still paying a large amount out of pocket & she does not dorm. She lives at home.

Of course, we could have forced her to go the larger university in the area, however, this was the best choice for her, so I'm not complaining. I'm just stating that not all schools are the price you have quoted.

Ha! Thank you, TravelLiz. I guess I would just feel badly charging for something that families can get for free. Financial aid offices and FAFSA should be willing to answer the same questions for you! I know it's overwhelming and intimidating, but the best way to overcome that is to learn more about it.

If anyone else has any questions, I'd be happy to answer to the best of my abilities - but certainly your best resource and final answers will have to come from the aid office at the school you choose. Best of luck!

Don't feel bad. Honestly, I'm sure there is a market for your services. Some people don't have the time or the rescouces to do the job you do.

You could work from home, doing something you obviously enjoy & help people. It would be a win, win situation.

A friend of ours hired a gentleman to research scholarship opportunities for his daughter. This is something that I'm pretty sure can be done on your own, but they didn't have the time so they hired someone to do it.

I would seriously look into becoming a consultant to people.

 

[Toby'sFriend]

Of course, we could have forced her to go the larger university in the area, however, this was the best choice for her, so I'm not complaining. I'm just stating that not all schools are the price you have quoted.

But that is the case for Penn State, which is the school the OP is talking about - which is also an great school.

Yes, I'll be paying much more than $5000 for my son next year also.

 

[phragmipedium]

Don't feel bad. Honestly, I'm sure there is a market for your services. Some people don't have the time or the rescouces to do the job you do.

You could work from home, doing something you obviously enjoy & help people. It would be a win, win situation.

A friend of ours hired a gentleman to research scholarship opportunities for his daughter. This is something that I'm pretty sure can be done on your own, but they didn't have the time so they hired someone to do it.

I would seriously look into becoming a consultant to people.

Hmm...I wouldn't have the slightest idea how to start this, but thanks for the vote of confidence. It's also hard to give people specifically helpful advice without being able to view their FAFSA information, as I was able to do as an aid counselor. So far I've just been helping family and friends with kids going into college, but perhaps I'll think about it.

 

[Toby'sFriend]

There is a whole industry out there of "College Coaching" that walks parents and students through the whole process from searching, to applying, to paying. Many people are hiring advisors now in the kids 8th grade/Freshman years of High School.

Maybe you could search around and find an established agency that could make use of your knowledge.

 

[Green Tea]

I see both sides of your situation. I can understand that for many situations there is not a big difference the exact school you attend. For some though it really matters. If a student is looking at certain career fields or graduate programs, the school makes a huge difference in where they will go upon graduation. Some of the top hiring companies only recruit and high level schools. If you don't have a highly regarded school on your diploma they don't even look at your resume.

Absolutely agree! All the schools he is considering are all top tier colleges, so taking one over the other really isn't an impact. Fit is #1 but he only applied places where he knew he wanted to go. So free vs potentially not free! We won't know until the April notification dates.

 

[madge]

My oldest is a freshman in college so I am just beginning to look at all of this. I understand filling out the FAFSA and they send you your EFC. Let's say your EFC is $14,000 but the school is $20,000. What will happen if anything? How can you get money that doesn't have to be paid back? Sorry if this sounds silly but I've heard 2 types of stories- people who get these great packages and people who got nothing. And what, if anything (besides saving, saving, saving) can we do now to help my dd get money from the college that won't have to be repaid?

here's a hypothetical situation:

FAFSA amount:
11500

School B:
Total Cost of Admission: $35,000
(room & board, tuition, and various fees)

Financial Need: $23,500

Financial Aid Package from Private School:
$22,250, including a merit scholarship, various grants, and a $3500 subsidized Stafford loan

The package was weighted 85% scholarships/grants and 15% subsidized Stafford loans. There was a gap of approx. $1250 from the package and the FAFSA number, so that needs to be factored into the Cost of Admission.

Total out of pocket cost: $12750/year (approx)

 

[Dopey420]

We have 2 kids in middle school. We have been saving a total of $585/month toward their college education since their birth. This essentially causes us to live paycheck to paycheck. If they intend on going to a private school, this savings won't even come close to covering the cost.

I told them their career path MUST include a high paying salary!!!

We're hoping that they get full ride scholarships. Then we'll retire and buy a trailer and move into Fort Wilderness!!

 

[LoveBWVVBR]

We have 2 kids in middle school. We have been saving a total of $585/month toward their college education since their birth. This essentially causes us to live paycheck to paycheck. If they intend on going to a private school, this savings won't even come close to covering the cost.

I told them their career path MUST include a high paying salary!!!

We're hoping that they get full ride scholarships. Then we'll retire and buy a trailer and move into Fort Wilderness!!

We also live paycheck to paycheck thanks to the college and retirement savings. We're saving enough to pay for a private college, but we hope that our kids will use their FLPrepaid plans for undergrad and their 529 savings for grad. Time will tell, I guess.

 

[mla1977]

I know when I have kids I won't be paying for their schooling until I'm done paying for mine! I have over $100k in student loan debt.

 

[mla1977]

I feel your pain....we are currently trying to figure out how to put our third (and last) through college. We just got one through at a cost of $120,000 (we paid about half), our son will be a senior in college next year, and now we have our youngest. We do not make alot of money. I'm a teacher and I have to go back to school to get my masters (it's required), and we just can't do it. We haven't received her financial aid package yet, but I have been worried about it daily. We know what to expect with our son, but I don't know what we will do with two. I am going to have to get a second job, which I really don't want to do. It is just so depressing...I feel we will be paying for college for the rest of our lives.

If you are going to school yourself, your child will be eligible for more grant money. My Mom was in school while I was in college and I received Pell Grant money. Once she left school the money disappeared from my package.

 

[phragmipedium]

If you are going to school yourself, your child will be eligible for more grant money. My Mom was in school while I was in college and I received Pell Grant money. Once she left school the money disappeared from my package.

The child actually will not be eligible for more money just because this happens. When a parent goes to school, the child still reports the number in the family in college as just themselves (or any other siblings in the household in college as well). Parents do not count on the child's FAFSA as someone in college, even if they're attending. However, when the parent fills out a FAFSA for their own financial aid, they do get to include the child as part of the number of family members in college. So - student and parent are going to college. Student reports number in household in college as 1, and parent reports number in household in college as 2. It used to be different, but for quite some time this has been the case. The justification from the feds is partially that often parents are only going part-time, not full-time, and it's less of an impact on the family for a parent to go to school than it is a child. Think of that what you will, but them's the rules.

Though, it's quite possible that in the quoted case, the student qualified for Pell Grant money simply because her mother was earning less income due to being a student and that impacted her Estimated Family Contribution enough to make her grant-eligible. That *would* reflect in the FAFSA, though the Pell Grant wouldn't have had anything to do with mom going to school, just the reduction in income.

I have heard of some schools making a professional judgment to factor that extra parent going to college back into the FAFSA calculations. That's one example I mentioned about, in my opinion, some financial aid administrators making potentially questionable professional judgments, because the federal regulations are quite clear on this - parents going to school cannot be reported as part of "number in household attending college" on the FAFSA for the student. I'm not quite sure how a FAA would justify that judgment if they were audited.

 

[Jeninindy]

may be too late for you but just as an fyi-if you have medical bills or expenses due to a medical situation (lost wages due to md appts/days off, perscriptions, co-pays...) you can contact the financial aide adminstrator at a child's college and request that they recompute the fed figures based on actual expenses vs. the set formula they use. this can result in a student becoming eligible to grants they otherwise would not be. i suggested this to a friend whose dh had an unexpected injury that impacted their finances and sure enuf her dd received some grants she was not previously deemed income eligible to

Thanks for your input - we did submit a letter detailing our medical expenses and other expenses, but don't expect anything different....especially since the EFC includes other costs besides the specific college expenses.

Thankfully, we are currently in a position in which I have unlimited overtime if I need it to help pay tuition costs, we have reasonable tuition rates even for a great school (Kelley School of Business at IU) and we have a son who has a work ethic and is ready, willing and able to contribute to his education.