Have questions re: college tuition/loans for DD

[punkin]

Some examples please?

His snowball method is inane. Usually you are much better off paying the larger interest rate first. Notice, I say "usually" because I can envision situations where this would not apply. Ramsey, however, can only preach one gospel to everyone.

 

[Metsfan520]

Not worth it.

 

[cepmom]

I am with Dave Ramsey and do not believe in taking out any loans. Especially for college. And yes, if you use credit or take out a loan you are in fact enslaved by the lender.

Enslaved?? Really? Because of the interest I pay? I hardly think that I'm enslaved. It's a business transaction...I borrow money for a fee (interest). Not all loans are evil. I have a mortgage and two car loans. I don't know anyone that would be able to buy a house without a loan....I guess I would have been better off renting instead taking a loan to buy my house??

It is what it is and I'm okay with that. But you have a right to your narrow minded opinion that all borrowors are enslaved

 

[LisaR]

I am with Dave Ramsey and do not believe in taking out any loans. Especially for college. And yes, if you use credit or take out a loan you are in fact enslaved by the lender.

I don't disagree with you in the sense that if you can do college without loans, you should. I know very little about Dave Ramsey but I definitely believe in leading a debt free lifestyle.

Here is the point that you seem to have trouble comprehending:

FAFSA is not ONLY for loans. Filling it out is the necessary evil for MANY scholarships. If you want to skip potential FREE money that your DD EARNED based on her academics, that is your choice but it is very short sighted of you.

 

[cabanafrau]

All I can say is what we've been doing. DH earns a respectable amount & I was a SAHM for many years, now self-employed, making a small amount, intended to help plump out the budget. We've been saving $ monthly since eldest DD was an infant. It's taken some hits in the financial markets, but we hope it will come back a bit more. It's not a pot of gold, but it will help.

We've taken eldest to Disney when she was a baby. We've taken both to Disney about 5 years ago. No DVC, no cruises, no Disney 2 to 3 times a year. We take decent family vacations, but not elaborate. We don't expect to get much help, aside from scholarships which our oldest luckily may save our bacon with.

It's kind of difficult to read posts from those who, by the very amounts they post indicate earn quite a nice income, QUITE nice, and serve it with a signature healthily populated by repeated Disney trips. How do you then expect your college bills to be covered by "someone else"? That's what financial planning is, selecting your priorities -- many of which are long-term, then sticking by them. Sorry, I'm not inclined to think we should be penalized by prioritizing and saving long-term for our kids' educations, only to be undercut by those who lived for the moment swooping in for assistance because now their kids are ready to go to college & they never bothered to plan for it.

 

[PixieTopaz]

As I said to someone else I am not google and this is not a court. I have done the research and found many places where FAFSA was not required for merit/talent based aid. Want to find those places, you can go look it up.

My college kid gets a free ride in my state (Merit Scholarship at any state University) as does any kid with certain grades and test scores, but the FAFSA is a requirement.

Doesn't matter what the parents earn, the form is required. My kid graduates debt free next year, and stayed in state.

So your theory is untrue in my case

 

[testifyoncruises]

Here is the point that you seem to have trouble comprehending:

FAFSA is not ONLY for loans. Filling it out is the necessary evil for MANY scholarships. If you want to skip potential FREE money that your DD EARNED based on her academics, that is your choice but it is very short sighted of you.

I am quite aware of that. You seem to miss that I spent a great deal of time researching this and found several sources of scholarships for both merit and talent that did not require the filling out of the FAFSA form. I don't need to fill out another form or have someone else knowing our financial situation than is absolutely necessary.

For us the FAFSA makes no sense whatsoever, but we know you can get aid if you know where to look without filling it out.

 

[testifyoncruises]

Enslaved?? Really? Because of the interest I pay? I hardly think that I'm enslaved. It's a business transaction...I borrow money for a fee (interest). Not all loans are evil. I have a mortgage and two car loans. I don't know anyone that would be able to buy a house without a loan....I guess I would have been better off renting instead taking a loan to buy my house??

It is what it is and I'm okay with that. But you have a right to your narrow minded opinion that all borrowors are enslaved

The only loan that does not bother me too much is a 15 year mortgage on a house. We did it without ever taking out a loan for a car or a house. We have found that you don't need a good credit score in this life and refuse to believe the garbage that people put out about its importance. We even are aware of banks that look beyond a FICO score to due such lending.

We just do not borrow money period. We do think loans are evil and people who have them are enslaved by the lender.

If you need a loan to buy a car, you are buying too much car.

 

[Grumpy's Gal]

luckily we have the prepaid plans for our girls.

if it's not too personal, can I ask how that works? Is it to a specific school? If so, what happens if they get a full-ride or a good scholarship to another school? What happens if that pre-paid school doesn't offer the degree they seek? I am just now gathering all of the information on college that I can -- thanks in advance for any information you can provide.

 

[cepmom]

The only loan that does not bother me too much is a 15 year mortgage on a house. We did it without ever taking out a loan for a car or a house. We have found that you don't need a good credit score in this life and refuse to believe the garbage that people put out about its importance. We even are aware of banks that look beyond a FICO score to due such lending.

We just do not borrow money period. We do think loans are evil and people who have them are enslaved by the lender.

If you need a loan to buy a car, you are buying too much car.

key words here being "we think"....it is your opinion, not a fact.

And yes we took out loans for our cars, and no we did not buy "too much car" I just don't have 20,000 laying around to pay for a car outright when that money is being used for other things(like DD's tuition)

 

[georgina]

Another DIS thread taking on a life of its own! I have filled out FAFSA for 3 years now, but I do agree that many private schools do not require it for merit scholarships. Sometimes this is clearly spelled out on the website as - all applications are automatically considered for merit scholarships - and sometimes you have to ask. My DD's scholarship was awarded strictly on merit, and we filled out FAFSA to see if she could get some additional grant aid. Several private schools offered her merit money this way, heck the U of Pitt offered full tuition early in the fall, long before FAFSA was even available to be filed.

Next year my DS will be applying to a very selective program. The school has a list of test scores/GPA to qualify for a certain amount of scholarship aid. Since he will qualify for a partial scholarship, and not need FAFSA to get it, I will have him check the box that he will not be applying for financial aid, as I believe this will give him an edge in acceptance. Many privates are not need-blind in admissions.

 

[PatsMom]

It's kind of difficult to read posts from those who, by the very amounts they post indicate earn quite a nice income, QUITE nice, and serve it with a signature healthily populated by repeated Disney trips. How do you then expect your college bills to be covered by "someone else"? That's what financial planning is, selecting your priorities -- many of which are long-term, then sticking by them. Sorry, I'm not inclined to think we should be penalized by prioritizing and saving long-term for our kids' educations, only to be undercut by those who lived for the moment swooping in for assistance because now their kids are ready to go to college & they never bothered to plan for it.

I hope this was not directed at me since I do make a nice income and I do have a signature healthily populated by Disney trips. We practiced sound financial planning and I have never said that I expected my college bills to be covered by "someone else". I have just pointed out that if you have income, you will not get aid. No complaining, I knew it all along. We set our priorities. My husband was able to retire young and be home with my daughter during her high school years. We are able to fund most of a state level education through specifically allocated savings. And we are not opposed to borrowing for an unexpected shortfall that came up when she chose a dual major and each major requires a semester abroad. So she has to do a year abroad. And she may add a fifth year to finish up a teaching degree as well.

 

[allison443]

Another DIS thread taking on a life of its own! I have filled out FAFSA for 3 years now, but I do agree that many private schools do not require it for merit scholarships. Sometimes this is clearly spelled out on the website as - all applications are automatically considered for merit scholarships - and sometimes you have to ask. My DD's scholarship was awarded strictly on merit, and we filled out FAFSA to see if she could get some additional grant aid. Several private schools offered her merit money this way, heck the U of Pitt offered full tuition early in the fall, long before FAFSA was even available to be filed.

Next year my DS will be applying to a very selective program. The school has a list of test scores/GPA to qualify for a certain amount of scholarship aid. Since he will qualify for a partial scholarship, and not need FAFSA to get it, I will have him check the box that he will not be applying for financial aid, as I believe this will give him an edge in acceptance. Many privates are not need-blind in admissions.

We had a similar experience with our dds, our oldest was awarded merit scholarships from several schools (both out of state publics, and private schools) and we never filled out a FAFSA for her. She attended one of the schools and actually received the scholarship without fafsa being needed. (if the school had required it for merit aid we would have filled it out). She was not eligible for need based aid and did not take out loans, so we had no need to fill out the fafsa.

I agree with what you are saying about some of the selective schools not being need blind in admissions.

 

[testifyoncruises]

And yes we took out loans for our cars, and no we did not buy "too much car" I just don't have 20,000 laying around to pay for a car outright when that money is being used for other things(like DD's tuition)

Well there is your rub. Not everyone HAS to have a 20,000 car unless they can pay cash for it. Using Dave's advice, we were able to buy lesser cars for cash while continuing to save up for cars we could pay cash for by putting money monthly into high yield (at the time) MMAs. In three years, we were able to walk to a previous owner and not only offer cash, but pay far less for a steal then she was selling it for. A case full of cash does wonders when it comes to your negotiating ability.

 

[cepmom]

Well there is your rub. Not everyone HAS to have a 20,000 car unless they can pay cash for it. Using Dave's advice, we were able to buy lesser cars for cash while continuing to save up for cars we could pay cash for by putting money monthly into high yield (at the time) MMAs. In three years, we were able to walk to a previous owner and not only offer cash, but pay far less for a steal then she was selling it for. A case full of cash does wonders when it comes to your negotiating ability.

nope, don't need a $20,000 car (DH does however for his job) but then again, I have no problems taking out a loan for it either.

 

[PatsMom]

Well there is your rub. Not everyone HAS to have a 20,000 car unless they can pay cash for it. Using Dave's advice, we were able to buy lesser cars for cash while continuing to save up for cars we could pay cash for by putting money monthly into high yield (at the time) MMAs. In three years, we were able to walk to a previous owner and not only offer cash, but pay far less for a steal then she was selling it for. A case full of cash does wonders when it comes to your negotiating ability.

Why would cash make negotiations any easier than a pre-approved auto loan check in your back pocket? Not saying it is a bad thing to pay cash for your car, it is actually a good thing to be able to do that. But cash or a pre-approved loan should make no difference in negotiating.

 

[LisaR]

I am quite aware of that. You seem to miss that I spent a great deal of time researching this and found several sources of scholarships for both merit and talent that did not require the filling out of the FAFSA form. I don't need to fill out another form or have someone else knowing our financial situation than is absolutely necessary.

For us the FAFSA makes no sense whatsoever, but we know you can get aid if you know where to look without filling it out.

Your child is SIX! How can you decide TODAY what you will NEED to do for your child in TWELVE years from now?? If you don't see that as being short sighted and stubborn, I don't know what else you would call it.

It is great to have a plan in place and saving now is the smart thing to do. You seem to have very set, strong goals in place for how you expect your DD to live. You leave very little wiggle room. Good luck with that. My experience is that those are the ones that come back to bite you. I suggest you look for a class that you can pay for out of your pocket on learning how to be a flexible individual.

 

[punkin]

Another DIS thread taking on a life of its own!

...no kidding...

 

[testifyoncruises]

I suggest you look for a class that you can pay for out of your pocket on learning how to be a flexible individual.

I can say the same to you. You seem completely inflexible in thinking the FAFSA is the ONLY way.

 

[testifyoncruises]

Why would cash make negotiations any easier than a pre-approved auto loan check in your back pocket? Not saying it is a bad thing to pay cash for your car, it is actually a good thing to be able to do that. But cash or a pre-approved loan should make no difference in negotiating.

Try it some time and come back and let us know how it worked out for you. Cash has an amazing psychological effect especially when it is those amounts. Walking away holding that much is far different than walking away with a check.