College financial aid experts HELP

[Shugardrawers]

I just got a call from my 18 year old step daughter. She wanted to know how much we could help her with college costs. Of course, we'll do as much as we can but are not able to pay the whole thing, or even 1/2. We just don't have it. My illness has devastated us financially and there's just no way we can pay for both. We had already said we'd continue to pay the amount we paid weekly in child support so long as she was in college and living at home or in the dorm. That's $100 a week.

Here's the real rub: DD has been talking about going to this college for a couple of years but I learned today that she hasn't even applied for financial aid. I'm not even clear that she's applied for admission to the school!! Since we live in VA and she lives in MS we don't always know the little details of her life. We just assumed she and her mother were working through the process and would let us know when they needed info or help. I thought it was a bit odd they hadn't asked for a copy of our tax return but considering her maternal grandmother is VERY well off and has said for years she would pay for college I didn't question it. Questions about the subject have only been vaguely answered and we just wrote it off to her being her usual ditsie self.

So now, here we are today, with DD wanting me to write a check for a years tuition to a school she hasn't even applied to. Is it too late to start the admission/financial aid/student loan process for this fall? It is isn't it? I gave her numbers for the financial aid office of the university and told her to make an appt with a counselor. She doesn't want to make the 4 hour drive up there to meet with anyone though It sounds like she wants me to do the whole thing for her but she's 18 and it's time she learns to do this on her own. Besides, I'm not even in the same state and her mother is right there!! I get the idea there was a big blow up over it since I heard her mother in the background yelling in spanish and DD was sniffling while talking to me. Sounds like mom is as clueless as we are.

Having never been to college, Dh and I are clueless on the process. What exactly do we need to do to get the ball rolling? I can't give her guidance in a subject I know absolutely nothing about. Can anyone HELP??

 

[Christine]

I haven't been through this process yet but many of my co-workers are going through it. She needs to fill out a huge FAFSA form and send it in. That will tell her how much aid she can get based on all of her parents' incomes. Once that is done, then you can determine what you will pay for.

I have a co-worker who is having the same problems with his niece. Her parents are dead and he is the executor of the estate. The niece doesn't want to "bother" with the form and wants her uncle to just pay out of the estate. But based on the fact that the niece is fairly poor, she could receive a lot of aid. It has been a battle for him to get her to do what she needs to do, so I feel for you.

 

[CarolG]

The college's website should have links for prospective students that will point you to the admissions office page (with application requirements and deadlines) and to the financial aid office page. I'd start there.

You can get more information on filing the FAFSA application at http://www.fafsa.ed.gov/index.htm

Good luck!

 

[UnderTheMistletoe]

WOW! It sounds to me that the Graduation and Prom thing has hit her and now she wants on the bandwagon with all the rest of her friends.

Ok. Firstly, can you PM me and tell me which school it is? That might help and I can look for the deadlines, etc., for you. If you don't want to, go to the main webpage and find the "Admissions" section. "Undergraduate." There should be a list of deadlines. Another option is to use the search bar that's usually at the front of each homepage.

Next, no, it is not too late to apply for Financial Aid. However, she will now be in a lot of competition for it as returning students are getting their awards now and seniors who applied and have committed to the school and taking theirs out now, too. It mens there isn't as much money left in the pot to pull from. It DOES NOT mean that there is none and that she will not get any if eligible. She will have much better opportunities for money if her grades and extra-circulars are good.

Please note that they will not award a financial aid package until she has been accepted to the University. You usually get the award packages a week or two after the acceptance package. Hold off on accepting the admissions offer until you know what the financial aid offer is. Sometimes, this can backfire, but you can't very well accept the admissions offer until you know what the aid is.

Fear not. If the school does not give you what you need, you can take out loans. I suggest not doing Fannie Mea or Frannie Mac or whichever one it is that does school loans. Their interest rates are astronomical. For MY needs, I have found that Wachovia is good. Call the banks and find out what the interest rates are? repayment schedule? penalties for paying the lump sum off? penalties for paying early?

From the school, there are a few options:
Grants and scholarships: You do not pay these back. These are usually awarded for stellar academic or athletic performace. Sometimes, they are give for leadership, too. There are usually requirements that you need to maintain in order to keep your status. For example, a GPA and full-time student status (12 credit hours or more usually). You want these! You want as many of these as possible!

Federal Loans: These are loans through the government. There are several types- Staffard and Pell immediately come to mind. Within the Stafford section there are both subsidized and unsubsidized. You should usually take these (unless your bank has some huge offer with no interest) becuase they are typically much lower than private loans. The school should have all sorts of literature to offer you about these. You can always take a look online, too.

The first step is for her to fill out a FAFSA: Free Application for Federal Student Aid. It's lengthy and time consuming, but they've done their best to make it as quick as possible. As long as you have all the information you need right there with you, you should be all right. She needs to have a parent there with her because unless she's good with taxes and the family income, it's confusing. You can do it online here. She needs to do this ASAP. The priority deadline was January or February. You need to fill a new one of these out EACH year you want to receive aid.

She also needs to be sure that she's following up on everything from FAFSA, private banks, and her school. They might need additional documents (paystubs, driver's licenses, etc). If you don't do it, they cannot give you a loan. SHE's got to be smart and SHE needs to take responsibility. These will become HER debts, not her family's, as they're under her name. She will sign Promisory notes with her name and signature stating her repsonsibility.

As harsh as this sounds, if she is not responsible enough to take the initiative about the loans and make sure everything is in order, she should not take them. Students going into default on their loans is huge, and many declare bankruptcy. She's 18 now and an adult.

Be sure she reads and understands EVERYTHING she is signing. Meeting with a counselor is very important as they understand everything best. Ask questions. Many, many questions. If you don't understand anything, ask. I would have taken a loan out at a 13.85% variable interest rate had I not asked and asked and asked. They will give you the run around and make you talk to 4 different people. Education is a business. What you don't know WILL hurt you.

Lastly, she cannot forget that she will have expenses while at school. Living at home sounds difficult if she's four hours away. There is rent/boarding, food, books, spending money, technology fees, lab fees, transportation fees, student service fees, orientation fees, yada yada yada.

She needs to be proactive and take initiative on this. What she doesn't get in financial aid or family support, she will need to take loans or find other, less expensive alternatives. More personally, I got into a school that I desparately wanted to go to. One that I told no one I was even applying to. I got in. I don't know how. But, I did not get the financial aid package I needed. My parents still don't know. I never told them becuase I knew that they would have put themselves through the ringer and back again to afford this school... a financial burden I didn't want them to bear. I have my acceptance letter with the school crest on it and the knowledge that they wanted me. There was no way it was financially feasible. Sometimes, you have to determine what's most important to you. She needs to figure out how much she vales an education and what she's willing to do for it.

ETA: Saw you were in southern Virginia. We lived in Norfolk area until September of last year. Which school is she interested in? If it's ODU, I can definitely help as I went through the rigmarole there.

 

[Free4Life11]

1. Apply for a PIN. This allows you electronically sign the FAFSA which greatly speeds up the process. http://www.pin.ed.gov/PINWebApp/pinindex.jsp

2. Print out the FAFSA worksheet and fill it out. Then you can use this so that when you are doing it online you can just input the information. http://www.fafsa.ed.gov/fafsaws67bw.pdf

3. Look at the list of various federal aid programs so you get an idea of what they are offering. http://www.fafsa.ed.gov/what010.htm#supplementgrants

Some aid is need based and other is just there for the taking, but you need a FAFSA to take it. Also a lot of state aid and even school aid is based on when the FAFSA was submitted.

Don't wait! But if she hasn't even applied for a school it might be too late...it doesn't hurt to check though, but tell her not to wait.

 

[m&m's mom]

She would need the financial information of the parent that is claiming her on as a dependent on their taxes.
I worked in the Financial aid field in college, grad school and also after I left school. I met my DH because he was writing the FA software for the company I worked for.
In my situation, it was a very good thing my siblings and I were on my Moms taxes as having 4 kids in college at the same time (1 Medical school, 1 Grad school and the 2 others in out-of-state universities) we hit the motherlode (which believe me was not that much). That is despite the fact that my Dad was the VP of the university we went to. My Dad was not contributing anything so it was a good thing they were not using his income.

 

[m&m's mom]

I would certainly think it was either too late or almost impossible to start the entire process now. She might be a student of that lovely junior college down the street for the 1st year.

 

[Snowysmom]

Everyone should always apply for financial aid, even if you don't think you qualify. Sometimes you can get a surprise! The FAFSA is the first form to fill out online. You will need to give her info from your tax return. Some private schools also require the CSS Profile. It sounds like your DSD better get going and at least apply to the school and for financial aid. Since she is 18, most colleges are going to want to talk with her, not mom and dad so she should talk with the financial aid office. She should understand that instead of just writing out a check for the tuition, first she needs to exhaust all avenues of financial aid from the college. There are loans she can take out and loans you can take out such as the PLUS loans for parents. Good luck!

 

[sharbear]

Just one thing to add. Do not write a personal check to someone who has not applied to college or for financial aid. It would be so easy for her to deposit the check and never go to college. I am sure that you would not do this, even if you were in the position to write a check.

All money should be written to the university.

Also your StepD has to be responsible for applying to school and applying for financial aid. If she can't even do this, how would she be able to be successful in college. There are still schools accepting applications, if she wants to go to college, she needs to be responsible enough to apply.

 

[Shugardrawers]

As harsh as this sounds, if she is not responsible enough to take the initiative about the loans and make sure everything is in order, she should not take them. Students going into default on their loans is huge, and many declare bankruptcy. She's 18 now and an adult.

This is exactly my thinking. If she doesn't want to mess with the red tape of financial aid then she better figure something else out because we don't have it. If she can't take the responsibility for this how's she going to handle the pressure of college??

We are in VA but DD lives in MS and wants to go to MS State. The distance is one reason I can't help her much in the process. I can gather info about where to go, who to see and what forms to ask for but I can't do it for her from 1000 miles away. Even if we still lived there, I'd go along with her but she'd be the one making appts and learning the ins and outs. I can't see being 22 years old and still having daddy and step mommy arranging for your financial aid.

I do wish I could just write her a check for $50k and wish her well but I can't. I don't know where she got the idea but her mother seems to think we are far better off financially than we are. We had this talk with her mother two years ago and again when she graduated last year. She told me then she didn't understand the "american way" of going to college. She's been in this country 20 years now and has an excellent grasp of the language and customs so I don't see what the problem is. Dh says she always wants someone else to do things for her. She doesn't want to be bothered with details. Past experience tells me that's true.

Anyway, it all boils down to the fact that even armed with all the info we can't help her much if she won't do the leg work. I guess we'll see how much she really wants to go to school.

 

[CarolG]

From http://www.futurestudents.msstate.edu/choice/admissions/

Both freshman and transfer student application deadlines are August 1, 2006, for the fall 2006 semester. However, to be considered for scholarships, applications must be received by February 1, 2006 for freshman and April 1, 2006 for transfer students.

From http://www.futurestudents.msstate.edu/choice/finaid/

Financial aid is available by accessing sfa.msstate.edu. Federal student financial aid applicants (grants, loans, and work study) should submit the Free Application for Federal Student Aid(FAFSA) as soon as possible after January 1, 2006 for students entering in fall 2006. MSU’s Federal School Code is 002423.

State student financial aid applicants(Mississippi residents only) should submit the online state aid application as soon as possible after January 1, 2006 for students entering in fall 2006. Such programs as the Mississippi Tuition Assistance Grant (MTAG), Mississippi Eminent Scholars Grant (MESG), William Winter Teacher Scholar Program and other aid programs are available through this application process.

It sounds like she still has time to apply for admission if she hasn't already, but it's too late for the university's scholarships. There's still time to apply for student loans like those described by other posters.

 

[UnderTheMistletoe]

I can't see being 22 years old and still having daddy and step mommy arranging for your financial aid.

Love, you would be surprised. I am 21 and married and have been on my own just a few weeks after turning 19. I see some of these kids in school who don't know the value of a dollar and how hard Mom and Dad work to put them through college. They don't see the bills and they don't work to help pay them.

It infuriates me. Usually, they are the ones parading around in the $100 jeans with a $400 purse and attend class as it fits their social schedule. They are also the ones I sat next to during my exams yesterday who looked at me and whispered, "What's the answer to 4?" Figure it out yourself!

College is an opportunity, not an entitlement. Can't get through the admissions and financial aid process, I can guarentee you that they won't get through the regular course load.

Can you talk her into the Community College for the first year to test the waters?

 

[Shugardrawers]

Love, you would be surprised. I am 21 and married and have been on my own just a few weeks after turning 19. I see some of these kids in school who don't know the value of a dollar and how hard Mom and Dad work to put them through college. They don't see the bills and they don't work to help pay them.

It infuriates me. Usually, they are the ones parading around in the $100 jeans with a $400 purse and attend class as it fits their social schedule. They are also the ones I sat next to during my exams yesterday who looked at me and whispered, "What's the answer to 4?" Figure it out yourself!

College is an opportunity, not an entitlement. Can't get through the admissions and financial aid process, I can guarentee you that they won't get through the regular course load.

Can you talk her into the Community College for the first year to test the waters?

She went to community college last year. I can't figure out how she managed to get her Pell grant and scholarships for that but can't figure it out for the university

The plain and simple truth is that she's from a lower middle class blue collar family. We just can't put her through school. She has to get all the financial aid she can and we'll do what we can after that. Oh, it's so hard when your kids have to do adult things and you want to do it for them but you know in the long run they have to do it themselves.

 

[caitycaity]

Students going into default on their loans is huge, and many declare bankruptcy.

and the worst part is student loans are generally not dischargeable (i.e., you still have to pay them, even if you declare bankruptcy!).

 

[UnderTheMistletoe]

and the worst part is student loans are generally not dischargeable (i.e., you still have to pay them, even if you declare bankruptcy!).

Good. I know people have to declare bankruptcy because of financial hardships. When you do it legally and honestly, I have no qualms with it although I don't neccesarily like it. When these people go out and max out five or six credits cards and buy a new car before they do it becuase they know they are going to do it...WOW.

I don't think the educational or lending institutions should be held responsible or slapped on the hand becuase you made a big boo-boo.

I posted somewhere earlier that I know a few of my friends will have about $300K in student debt at the end of their education. I am truly, truly interested to see what will happen to them with that debt load.

 

[poohandwendy]

I think I would tell her exactly how much you will contribute (monthly basis) and then ask her to let you know when she has all of the requirements met to start in the fall. I would not send any monies to her directly, only to the school or a tuition payment company. Let HER work the numbers to see if it is doable.

We use Tuition Management to make monthly tuition payments (they just break down the costs over 10 months and we pay them... they pay the college), I am sure MS has a similar tuition payment plan. We pay a $50 annual fee for this service. Tell her to look into it.

Btw, the financial ad office would be more than happy to talk to her over the phone. They probably will want her to come in, but they can definitely get her steered in the right direction over the phone. If she cannot make the drive to the school to get things taken care of, how on earth can she be relied on to go to class every day?

Good luck, she sound slike a handful, LOL.

 

[Shugardrawers]

I told her we could contribute the same amount we had been paying in child support, which is between $300 and $500 per month depending on Dh's overtime or lack thereof. Once she is actually enrolled and living in the dorm I have no problem with sending a check to her. If she doesn't use it wisely that little pipeline can run dry real quick. It's just a matter of getting her butt in gear. If she's not motivated to work this out then it's just as well we don't waste money on an education she's not ready to be responsible about anyway.

I still don't like being the meanie. I've always been the cool, go to her for anything, best friend kinda step mom. I hated to tell her I wouldn't do it for her but I had to for her own good.

 

[poohandwendy]

I told her we could contribute the same amount we had been paying in child support, which is between $300 and $500 per month depending on Dh's overtime or lack thereof. Once she is actually enrolled and living in the dorm I have no problem with sending a check to her. If she doesn't use it wisely that little pipeline can run dry real quick. It's just a matter of getting her butt in gear. If she's not motivated to work this out then it's just as well we don't waste money on an education she's not ready to be responsible about anyway.

I still don't like being the meanie. I've always been the cool, go to her for anything, best friend kinda step mom. I hated to tell her I wouldn't do it for her but I had to for her own good.

Please, please, please trust me on this. Unless she is uber-responsible (doesn't sound like it)....DO NOT SEND monthly large checks to her directly. Trust me, she will be far too tempted to use it for personal cash. Break the money down if you need to, send her some spending cash per month and then the rest to the college or tuition payment company, if you really feel the need. Send her care packages with gift cards. But honestly, sending $300-500 to her directly, every month and she will most likely blow it. I hate to say it, but I think that would be a HUGE mistake. Abd money wasted.

Btw, I think the amount you state is MORE than fair. She is fortunate to have the opportunity. It is not being mean to be paying her college directly...ever. Don't let guilt guide you into her flushing your money down the drain, LOL.

Btw, this is coming form a mother of a DD who just finished up her freshman year...and she IS a very responsible 19 yo...I would not give her that kind of rope because I would not want her to hang.

 

[ozarkmom]

She really needs to fill out the fafsa asap!

 

[poohandwendy]

She really needs to fill out the fafsa asap!

Yeah that, first she needs to apply for her PIN online. That takes over a week to get back (IIRC). She can download the worksheet to get everything together while she is waiting.