Student Loan Options... PLEASE PLEASE HELP

[Teenz]

I have been an active member to these boards for a umber of years but because of the sensativity of my question I have created a new account...

My duaghter will be a Sophmore in college this fall. She did an amazing job her first year and maintained a 4.0 GPA and made the Deans list both semesters... (could not be more proud)

I am a single parent and struggle every month to make ends meet. This past year has NOT been a good one financially for me and due to her absent in her life father who decided not to take any responsibility in her college education and completely stop the minimal support he gave us and other sudden issues I filed a bancrupcy.. Not one of my prouder moments for sure As it is I work 2 jobs and any overtime that is offered.

Last week I applied for the parent plus loan and was "DENIED".... I do not know what to do at this point. I am looking for some advise and guidence. If my daughter was just going to school to "party" I would not feel like it was worth it to find a way for her to go back.. She is a very serious student who has her career mapped out for herself... Immediately after graduation she wants to do the Disney college program and immediately following that wants to do a professional internship with hopes of getting a job with Disney. She is getting her degree in PR and Communications with a double major in marketing. Her DREAM has always been to work for Disney..

I feel like I completely let her down and I need to make this right and get her back to school this fall.

 

[NMAmy]

Has your daughter applied for financial aid and/or scholarships? I'm sorry that you're going through this but your daughter may need to step up and try to raise some money to assist or take a semester off to work and save money.

 

[sonnyjane]

Has your daughter applied for financial aid and/or scholarships? I'm sorry that you're going through this but your daughter may need to step up and try to raise some money to assist or take a semester off to work and save money.

This. Has she applied for federal student loans?

 

[yoopermom]

I really feel for you, DS is going to be a sophomore in college also (at a rather expensive state school). When we went over his financial aid package last year, I warned him that it would not be the same year to year, especially since it seems that freshman year many students get more aid.

You need to get on the phone to the financial aid advisor at her school ASAP, go over her existing financial aid package offering for the next year, and figure out what options you have, if any.

I know you don't want to hear this, but it not your responsibility to make this right for her, to make it so she can stay in her existing school. It sounds as though you are working your tail off just to survive/get by (which is very admirable).

The harsh financial reality may be that she may have to take time off to work and save $$ and/or go to a community college.

Terri

 

[lizzi6692]

Look into federal loans if you haven't already. I'm fairly certain the only reason they can turn you down is if you don't qualify financially(make too much money). If she is already getting federal loans and that's not covering the school she's going to then I would consider cheaper options. I know it sucks, but sometimes you have to do what's necessary when you're an adult. And like it or not as a college sophomore she is an adult.

 

[rigs32]

Your daughter needs to go to financial aid and ask for their assistance. They are the professionals.

 

[TinkerBelled]

Your daughter needs to go to financial aid and ask for their assistance. They are the professionals.

I echo this. They have knowledge of all sorts of scholarships and loan options that parents might not. This must seem overwhelming for you, but I assure you that similar things happen at these institutions all the time (as in, parents' financial situation changes while their kids are in college). They'll know how to deal with things, and they will, I hope, ease your mind. The fact that your daughter has worked so hard and that her grades are so good is only in her favor--it opens doors that might not otherwise be there.

 

[yoopermom]

Most universities also have a financial aid appeal form, for families who have had a dramatic change in circumstance. You might want to ask whether or not you would qualify for that when you talk to the advisor.

Terri

 

[msmayor]

Look into federal loans if you haven't already. I'm fairly certain the only reason they can turn you down is if you don't qualify financially(make too much money). If she is already getting federal loans and that's not covering the school she's going to then I would consider cheaper options. I know it sucks, but sometimes you have to do what's necessary when you're an adult. And like it or not as a college sophomore she is an adult.

Parent PLUS loans are part of the federal student loan program...its not too much money that causes the denial, its too little resources to be able to pay down the loan.

If a parent is denied the ability to borrow through a PLUS loan, the student is automatically eligible for more Stafford Loan funding. I can't recall the exact amounts, but it is at least something to help.

Its important to understand that while our dreams of getting our children through college are great, its not always worth it to finance large chunks of the cost through loans. Student loans are NOT able to be discharged through bankruptcy, and even if only the standard, maximum amount of Stafford loans are taken out by the student (both subsidized and unsubsidized portions) that's a hefty $27,000 loan balance to pay off...not including any accrued interest on the unsubsidized loan balance. The payment, six months after graduation, can run $350-400/month on JUST those loans. If a student gets private loans in addition (which often require a cosigner) its easy to see that monthly payment jump into the $1,000+ range.

Definitely seek the assistance of the financial aid office. There may be some grant money available (that doesn't need to be paid back) or other work-study programs that can help. It may mean taking a longer period of time to graduate, working more during school and summers to earn the money needed to pay the bills. Only you and your child can decide if its worth it.

But don't lose sight of the fact that loans HAVE to be paid back. Getting through the four years to graduation may be exhilarating and awesome, but facing 10-15 years of student loan payments as a result can surely dampen the spirit quickly.

 

[lizzi6692]

Parent PLUS loans are part of the federal student loan program...its not too much money that causes the denial, its too little resources to be able to pay down the loan. If a parent is denied the ability to borrow through a PLUS loan, the student is automatically eligible for more Stafford Loan funding. I can't recall the exact amounts, but it is at least something to help. Its important to understand that while our dreams of getting our children through college are great, its not always worth it to finance large chunks of the cost through loans. Student loans are NOT able to be discharged through bankruptcy, and even if only the standard, maximum amount of Stafford loans are taken out by the student (both subsidized and unsubsidized portions) that's a hefty $27,000 loan balance to pay off...not including any accrued interest on the unsubsidized loan balance. The payment, six months after graduation, can run $350-400/month on JUST those loans. If a student gets private loans in addition (which often require a cosigner) its easy to see that monthly payment jump into the $1,000+ range. Definitely seek the assistance of the financial aid office. There may be some grant money available (that doesn't need to be paid back) or other work-study programs that can help. It may mean taking a longer period of time to graduate, working more during school and summers to earn the money needed to pay the bills. Only you and your child can decide if its worth it. But don't lose sight of the fact that loans HAVE to be paid back. Getting through the four years to graduation may be exhilarating and awesome, but facing 10-15 years of student loan payments as a result can surely dampen the spirit quickly.

I meant the federal loans outside of Parent PLUS. I realize they're credit based, Staffords are not. They're based on how much your parents can contribute to your education, assuming you're a dependent student.

 

[RitaE]

Yes, Staffords are separate from the PLUS loans but it would be rare for a Financial Aid Office to list a PLUS loan on the award letter and not first max out the student's other Federal Loan options.

The student definitely needs to contact the Financial Aid office tomorrow as others have said. Sometimes they do have a couple of tricks up their sleeve that they can use to fill a gap.

 

[barkley]

Yes, Staffords are separate from the PLUS loans but it would be rare for a Financial Aid Office to list a PLUS loan on the award letter and not first max out the student's other Federal Loan options.

The student definitely needs to contact the Financial Aid office tomorrow as others have said. Sometimes they do have a couple of tricks up their sleeve that they can use to fill a gap.

yup-plus loans are the last listed on dd's financial aide paperwork. they take the cost of attendance and subtract in order-expected family contribution, scholarships, subsidized loans, unsubsidized loans, and lastly plus loans.

 

[allison443]

I meant the federal loans outside of Parent PLUS. I realize they're credit based, Staffords are not. They're based on how much your parents can contribute to your education, assuming you're a dependent student.

Actually, everyone can get a Stafford loan, regardless of how much their parents make. However, the level of income determines whether the student gets a "subsidized" Stafford loan, or an "unsubsidized" Stafford loan.

 

[lizzi6692]

Actually, everyone can get a Stafford loan, regardless of how much their parents make. However, the level of income determines whether the student gets a "subsidized" Stafford loan, or an "unsubsidized" Stafford loan.

Yes but the total amount in Staffords is still effected by the EFC. If there is financial need, you can get both.

 

[allison443]

I have been an active member to these boards for a umber of years but because of the sensativity of my question I have created a new account...

My duaghter will be a Sophmore in college this fall. She did an amazing job her first year and maintained a 4.0 GPA and made the Deans list both semesters... (could not be more proud)

I am a single parent and struggle every month to make ends meet. This past year has NOT been a good one financially for me and due to her absent in her life father who decided not to take any responsibility in her college education and completely stop the minimal support he gave us and other sudden issues I filed a bancrupcy.. Not one of my prouder moments for sure As it is I work 2 jobs and any overtime that is offered.

Last week I applied for the parent plus loan and was "DENIED".... I do not know what to do at this point. I am looking for some advise and guidence. If my daughter was just going to school to "party" I would not feel like it was worth it to find a way for her to go back.. She is a very serious student who has her career mapped out for herself... Immediately after graduation she wants to do the Disney college program and immediately following that wants to do a professional internship with hopes of getting a job with Disney. She is getting her degree in PR and Communications with a double major in marketing. Her DREAM has always been to work for Disney..

I feel like I completely let her down and I need to make this right and get her back to school this fall.

Please go over the loan repayment requirements very carefully. I believe they come due pretty soon after graduation...how much will your dd be making in the Disney college program and then an internship? Will it be enough to cover her living expenses and her loan repayments? There are plenty of online resources where you and your dd can look at the repayment schedule for the amount of loans. How did you pay for the first year of college? Did the school decrease their financial aid this year? Can that decision be appealed?
Best of luck to you. I know you just want what is best for your dd.

 

[sbtrfly74]

I agree have your daughter go talk to financial aid asap. My neice was going to an expensive college with minimal grants and was being covered by loans. Last fall my sister was finding herself in a divorce with an ex not willing to pay for anything and very little income.

I don't know what she did exactly but she ended up having all but $800 a semester out of about 14k covered for the next year. I can try to find out how she approached it.

 

[The Mystery Machine]

Your dd NEEDS to go to financial aid and see how they can help her.

It will be a lot of paperwork and she will need to babysit it 24/7. In other words get on the first name basis with someone and work with them.

Since your ex has stopped support and it was probably included in the fin. aid formula, you have to adjust that as well. Not sure of the paperwork heck that will be.

Good Luck.

 

[leebee]

The FAFSA you filed for your DD was based on LAST year's income. Right now, you are in a very, very different position. Go talk with them at the financial aid office. (If they can't legally talk to you, have your DD sign the waiver that allows them to release "her" information to you.) They have appeals forms that you can file, and they will review her aid package based on your having filed bankruptcy. Not sure that they will care that her dad is no longer paying anything; unfortunately if he's her father, they expect him to contribute. The financial aid folks can't work miracles- it's all pretty formulaic- but they sure can help.

 

[MrsPete]

I understand what you're doing: You're grasping at any straw that will help keep her in the college where she's been successful. That would absolutely be the best choice! But let me ask the ugly question that hasn't come up yet: If you're barely making it, working two jobs and barely keeping your head above water, How are you going to keep doing all you're doing AND repay these loans on top of it all?

That ugly question isn't about what you want or how deserving your daughter may be -- it's about what's possible.

Unfortunately, borrowing will not solve the problems you're in: Instead, it will act as a Band-Aid, and then you and your daughter will still have to pay the cost of her education plus interest later. Yes, yes, I know -- she'll be earning then, and you're hoping to be out of difficulty by then, but that doesn't happen for quite a few people.

I fear that the reality is that your daughter is going to have to go somewhere less expensive, and the fall semester is approaching fast. I suggest you start investigating your options NOW.

I would definitely start with her current college's financial aid office. I do not buy into the "it's her education, so throw her into the deep end" concept, so I suggest you go with her. Yes, she's a legal adult, but she's not experienced in finances. If they can offer any financial aid, wonderful. But I wouldn't count on too much. If they can't work miracles for you this year, ask what you might be able to do to better prepare for next year. Also check on her enrollment with the university; if she takes a year off, what's necessary to return in the future?

Since she did so well academically, also look into scholarships -- though your chances are better for next year; most scholarships are already awarded for this year.

And begin looking into other options: A cheaper school, a closer school so she can live at home, community college, part-time studies, online classes, taking a year off. I know, I know, NONE of those are what you want, but if you can't pay the bill, you have to do what you can do -- not what you wish were possible.

And good luck.

 

[Teenz]

Good morning and THANK YOU for all your suggestions!
her award letter includes PELL grant, Stafford, Work Study, Director Grant, Donor Funded Grant, Trustee Grant and a grant from her school. All together it comes to just under 30,000, but the tuition for her school is 47,000.. We are going to get in contact with the financial aide department and see what other options are out there for her...
It is just soooo frustrating when I hear about and see others who do not have their act together and for the most part getting a "free" ride to go away and PARTY!!! UGH!!! It is really hard not to feel a little self pity.