Have questions re: college tuition/loans for DD

[momof2minnies]

OMG I am ready to throw up! We filed FASFA and of course hard working people get nothing but screwed in this country.

We were told we should be able to pay $57,000 per year- ah what? Where is that coming from will someone tell me?

With the schools she is interested in for 4 years the totals look like somewhere around $150,000 not including interest.

How do people do this and what type of loans do they take out? We have no retirement fund and would like to be able to eat when we retire never mind anything else we may need.

Any help would be greatly appreciated.

Linda

 

[cepmom]

wow, that's high. We are supposed to come up with 21,000 for DD. Does your DD qualify for any scholarships? A lot of private schools provide more in the way of aid; DD's school costs almost $40,000 per year (including room and board) but she gets a scholarship and a grant from the school and she takes out a Stafford loan each year. We pay the rest, which ends up being the $21,000 that FAFSA told us we should be able to pay.

Do you have a high income? A lot of money in the sitting in the bank? Rental property or do you own a business? SOme of these could explain why the EFC is so high.

 

[momof2minnies]

Thanks for your reply.Yes she did get some scholarship money- these schools are around 42-43K per year.Minus the money she received from the schools left over not including interest from a loan would cost us about $147,000- at the highest school.

Could you tell me a little about the Stafford loan- I have heard of it and my DH knows more I am sure but how and where does that come from- bank or school?

We have a small nest egg in the bank but it is our retirement- 401k tanked and no pension or anything like that.

Linda

 

[torinsmom]

Here is info on Stafford Loans. By the time I get my Masters Degree in December, I will have around $30,000 to pay back somehow.

http://www.staffordloan.com/

 

[Teacher03]

Depressing, isn't it! We were also shocked when our first went to college.

The only money our three qualified for was stafford loans....which obviously doesn't cover the cost. We paid some out of pocket, we took out plus loans to help them, and I had to get a second job. My hubby and I make less then $70,000 a year and will be paying for college for many years to come. Luckily our oldest received some scholarships. I also recommend checking out private schools;they sometimes offer more money.

I remember going to a financial aid workshop required by the college and was told what we would probably be offered according to our pay....it was the same as someone who made a million dollars a year!

On the other hand, my sister who has received handouts from everyone...the govt, my parents (paid off her house, gave her another) doesn't have to pay a cent for her son to go....in fact, he has enough left over to buy a car, which he doesn't need because he just was given one by his grandparents (my parents!) OK, I just realized I am ranting and off topic, but it does drive me bananas!

 

[cepmom]

I believe all students qualify for Stafford loans; there are subsidized and unsubsidized Stafford loans. We only had DD take out the subsidized loan. It's $3500 for freshman and $4500 for the remaining years (I think...she's a sophomore now). Basically the loans do not accrue interest while she's in school. She will need to start repaying the loan 6 months after she graduates or leaves school. It's not a ton of money, but it helps and also allows DD to take ownership of some of the financial burden.

When you get the info from the schools' finanicial aid offices, they will have info for Parent loans as well. We do not take any parent loans at this time so I really don't know anything about them.

As far as your nest egg, I think it might be better for you to put it in an IRA account that way the FAFSA can not look at that as a means to pay for your DD's education. Every year before we file the FAFSA, we put as much as we can into our Roth IRA's so we don't have that extra money laying around in the bank.

I am far from an expert on this stuff, I hate it more every year but I hope that helps a little

 

[The Mystery Machine]

We took out the PLUS loan at 15,000 this yr which was the max and dd's max was 5500. The school she is at is 21000/yr.

Right now we are shopping for a less expensive school because she is not 100% sure of her major and she did not really "love" the school.

It makes no sense to sit undecided at an expensive school that you do not "love".

Good Luck it is tough out there.

 

[agnes!]

Depressing, isn't it! We were also shocked when our first went to college.

The only money our three qualified for was stafford loans....which obviously doesn't cover the cost. We paid some out of pocket, we took out plus loans to help them, and I had to get a second job. My hubby and I make less then $70,000 a year and will be paying for college for many years to come. Luckily our oldest received some scholarships. I also recommend checking out private schools;they sometimes offer more money.

I remember going to a financial aid workshop required by the college and was told what we would probably be offered according to our pay....it was the same as someone who made a million dollars a year!

On the other hand, my sister who has received handouts from everyone...the govt, my parents (paid off her house, gave her another) doesn't have to pay a cent for her son to go....in fact, he has enough left over to buy a car, which he doesn't need because he just was given one by his grandparents (my parents!) OK, I just realized I am ranting and off topic, but it does drive me bananas!

You're preaching to the choir on that score. I read something here on the DIS that foster kids can get a completely free college education in at least one state...hmmmm, maybe my DD....nawww, it's nice that people who need help get it but all this crazy paperwork and all the changing family-circumstances that everyone has had to deal with...

Maybe I should have run up a lot of debt, maybe I shouldn't have ay money in the bank, maybe I shouldn't have any 401Ks or IRAs, maybe I shouldn't pay my bills on time and then MY kid would get a free ride too.

agnes!

 

[chisnpeke]

Do you have a high income? My friend said that when she applied they told her that her parents should be able to contribute $50,000+ to her education. They have three children and she goes to a private school so when the money they set aside is gone, it's up to her to pay back. Her mother works for an affluent school district as the treasurer so I'm guessing she makes at least $100,000.

It does suck that people who work don't get any money. My other friend, whose father is a firefighter/EMT only makes in the $40,000s and she did not qualify either.

I will tell you that for FAFSA the only thing I believe that they check is the taxes. If you have assets you could get by with putting a low amount.

 

[Art 1]

Do you have a high income? My friend said that when she applied they told her that her parents should be able to contribute $50,000+ to her education. They have three children and she goes to a private school so when the money they set aside is gone, it's up to her to pay back. Her mother works for an affluent school district as the treasurer so I'm guessing she makes at least $100,000.

It does suck that people who work don't get any money. My other friend, whose father is a firefighter/EMT only makes in the $40,000s and she did not qualify either.

I will tell you that for FAFSA the only thing I believe that they check is the taxes. If you have assets you could get by with putting a low amount.

Wouldn't that be cheating?

 

[The Mystery Machine]

Wouldn't that be cheating?

Yes, but if you get audited you are going to be in trouble. I imagine there are a certain percentage of people who cheat and get away with it. That is just a fact.

 

[momof2minnies]

You're preaching to the choir on that score. I read something here on the DIS that foster kids can get a completely free college education in at least one state...hmmmm, maybe my DD....nawww, it's nice that people who need help get it but all this crazy paperwork and all the changing family-circumstances that everyone has had to deal with...

Maybe I should have run up a lot of debt, maybe I shouldn't have ay money in the bank, maybe I shouldn't have any 401Ks or IRAs, maybe I shouldn't pay my bills on time and then MY kid would get a free ride too.

agnes!

The people who hold this country together get screwed every time.I am a RN and to get my license renewed next year I have heard it has gone up to $125, that is ridiculous! Another way the working people pay, pay and pay!!!!!!!!!! Who gets the AMERICAN DREAM????????? Not the hard working AMERICAN!

Makes us very angry, in case no one could tell.

DD did get the Stafford for $5500- big deal though.

Linda

 

[goodeats]

Maybe explain to your DD the cost of a private education versus a good state school. If you get loans - who will be responsible for repayment. If it's DD she needs to know so she doesn't become a philosophy major with six figure student loan debt.

 

[Kitty 34]

The people who hold this country together get screwed every time.I am a RN and to get my license renewed next year I have heard it has gone up to $125, that is ridiculous! Another way the working people pay, pay and pay!!!!!!!!!! Who gets the AMERICAN DREAM????????? Not the hard working AMERICAN!

Makes us very angry, in case no one could tell.

DD did get the Stafford for $5500- big deal though.

Linda

Going along with what you said, what ticks me off is my DS graduated with high honors last spring from an accredited university but he still has to pay over $1000 to take several tests to prove he knows enough to receive a license or certificate or whatever you want to call it to get a job!! It's nuts!

 

[MoniqueU]

Can we just start a Fafsa \finacial aid support group? My son is a Jr and I have NO clue how it works and am dreading it big time. My son will be the one to pay back his loans and I am sure he won't get scholarships. I am terrified and annoyed by the whole thing.

And I agree that those who work hard get penalized while those that are already sucking this country dry get a free ride.

 

[chisnpeke]

Wouldn't that be cheating?

Yes it would. I am just saying it can be gotten away with.

 

[chisnpeke]

Maybe explain to your DD the cost of a private education versus a good state school. If you get loans - who will be responsible for repayment. If it's DD she needs to know so she doesn't become a philosophy major with six figure student loan debt.

I would do this as well. There was a thread on this a little while ago and I said on that thread that I couldn't imagine paying $150,000 for an education and having all of that debt to go with it.

 

[minkydog]

Maybe explain to your DD the cost of a private education versus a good state school. If you get loans - who will be responsible for repayment. If it's DD she needs to know so she doesn't become a philosophy major with six figure student loan debt.

Totally agree. I don't understand going deep into debt for a college degree that will never provide the kind of income you need to have to pay off that debt. I know people whose kids went to expensive schools to major in--elementary education? Really, you needed to go to Vanderbilt for that?

OP, there is no way I would take out college loans for my child if I didn't have a retirement fund. You need to put this on her shoulders;she needs to be the one taking out her loans. There are plenty of student loans out there, but no retirement scholarships. ANd if she can't get enough loans to cover the $57,000 (or whatever), then perhaps she needs to rethink her choice of university.

 

[tar heel]

I'll tell you what we did -- we pulled back and went the state school route. Our son had the option of going to Duke or the like and coming out with $100,000 or so in loans or going to NC State or UNC-Chapel Hill and having it totally paid for by us. When it came time for our second son to go to college we looked only at the state universities. That is our intention for our third son also. Two of the three have the kind of academic records that qualify them for the very top universities, but this still feels like the best choice for our family.

 

[The Mystery Machine]

Totally agree. I don't understand going deep into debt for a college degree that will never provide the kind of income you need to have to pay off that debt. I know people whose kids went to expensive schools to major in--elementary education? Really, you needed to go to Vanderbilt for that?

OP, there is no way I would take out college loans for my child if I didn't have a retirement fund. You need to put this on her shoulders;she needs to be the one taking out her loans. There are plenty of student loans out there, but no retirement scholarships. ANd if she can't get enough loans to cover the $57,000 (or whatever), then perhaps she needs to rethink her choice of university.

Sorry minky, kids cannot take out enough money freshman year. The max is 5500.

What you suggest is not possible.

Next yr is 7500, I think. Which is why we are shopping for schools that are 12,000 instead of 21,000. DH and I do not want to take out any more loans than we have to.