Student Loan Options... PLEASE PLEASE HELP

[tomthebarncat]

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.

That is a lot of money, where is she going to school? Harvard?? she should transfer to a state school and continue her education, there are no bad school just bad students. If she starts taking out student loans, they will start calling you and sending you notices her senior year, they are like vultures circling a almost dead corpse. When her grace period is up they will become relentless in getting their money!! I would think long and hard about borrowing large amounts of money when there are clearly other options based on her current tuition rates!

 

[trip]

I'm sorry you and your DD are having these difficulties. Even though it would be difficult, I do think you should look at the possibility of changing schools to something more affordable. She just finished her first year and you both should plan how you are going to pay for 3 more years. Look seriously at the loan debt she and you may incur. Student loan debt is a very serious problem. Good luck!

 

[Kriii]

I hate to say this, but the school is not affordable. You can get a communications degree for far less money. Your daughter will not earn more in her career just by attending a more expensive school. Sounds as if this is a private college, correct? I'd suggest posting on the College Confidential board, listing the exact amounts of tuition, fees, etc and a break down of the financial aid package. There are several college counselors who post there regularly and can give suggestions. Please also list the state you live in, as the the posters can suggest good alternative schools with better tuition rates. You don't want to accrue large loans. I am very sorry this is happening to you and wish you the best of luck.

Edited to add: Colleges expect families to contribute their EFC at the minimum and may or may not offer financial aid to bridge the "gap" between EFC and actual cost. If that "financial aid" to gap is offered in Plus loans only, this is no favor to you. I'm guessing that the 17 K is your EFC and that the college has met the "need" as defined by them by providing the aid to bridge the gap between 17 K and 47 K. Certainly if your financial circumstances are changed, let them know but the EFC will remain. Again, best of luck with this situation.

 

[EMAW_KSU]

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.

Go to a different college.

 

[barkley]

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.

when you talk to the financial aid office inquire about how many work study hours she was allocated, and if she might be able to do an on-campus work study/non work study funded position. at dd's university there are TONS of jobs available to students-and they work them around their classessome are strictly funded by work study but they are few and far between (and get snapped up fast), others are non work study or a mixture (so many hours of work study/remainder not). an on campus job (at least at dd's campus) can be for up to 20 hours per week during class sessions, and full time during breaks. the bulk pay a minimum of $10 per hour, so during sessions a student can be earning around $800 per month, with that amount doubling during the winter/spring/summer breaks.

with a major change in finances she might also be eligible to either a perkins loan which is backed by the university she attends (no fee, interest deferred until I want to say 9 months after graduation) or a tuition waiver. with dd's university tuition waivers are generally granted if a student isn't eligible for other forms of aid but has a significant financial need, students may end up qualifying for a reduction of the amount of tuition normally charged.

if she's not currently living at home, and commuting is feasible that should be given strong consideration-the cost of attendance at most universities decreases by almost 50% for students who live at home. if it comes to having to take a year off to work and set aside monies-make sure she does the appropriate leave paperwork with the university, and checks with financial aide to see if any of the monies she's been awarded for the upcoming school year can be deferred and held for the following.

 

[MrsPete]

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.

She's attending a 47K school? You absolutely can find something cheaper. Your biggest obstacle is time: You have to make a new decision soon.

Do note that the Work Study won't help you with the tuition bill that's coming soon. That's money that she'll earn throughout the semester, and it can absolutely be used for spending money and saved for next semester . . . but it's not going to help with the big bill. Also note that if your financial aid letter included a Stafford Loan, she's already building up debt against her future; I'd be wary of looking for more.

Finally, I don't think a whole lot of people are getting a "free ride". They're borrowing against their future. They're spending money they haven't yet earned, and it's going to catch up to them in the future. I feel pity rather than envy when I hear those stories.

That is a lot of money, where is she going to school? Harvard?? she should transfer to a state school and continue her education, there are no bad school just bad students. If she starts taking out student loans, they will start calling you and sending you notices her senior year, they are like vultures circling a almost dead corpse. When her grace period is up they will become relentless in getting their money!! I would think long and hard about borrowing large amounts of money when there are clearly other options based on her current tuition rates!

Hear, hear! Seek out more affordable options, not ways to borrow more! You're in a high-priced school, so I'm sure more affordable options exist.

 

[barkley]

op-is JUST the tuition $47,000? or is that the "cost of attendance" that's listed on the financial aid award letter. if it's JUST tuition then she's going to have (beyond living expenses) fees, books, supplies and other required attendance costs that can drive this figure up much higher. if it's the cost of attendance then it can be horribly inflated with lots of room for cutting costs (dd's university cost of attendance as reported on the financial aid award letters drops in half for students who don't dorm).

 

[NotUrsula]

I've got to admit, AFAICS, she only has two options:

1) Transfer -- ASAP. It may already be too late for this one, but have her sit down TODAY and send out some apps. There are lots of schools that would like to have a student of that caliber, but the issue is that most schools' financial aid is already spoken for at this point in the year. She would still get the Pell and the student loans, but probably not any of the school-funded aid.

2) Take a leave of absence. If she has the academic success that you say she does, her school is likely to want to keep her. In such cases, private schools in particular are often amenable to letting a student take a year off in order to get their financial situation stabilized before resuming their studies. If she does this, your DD should try to seek a high-earning job for the year -- something such as driving a UPS truck comes to mind, or oil drilling labor. It's dirty work, and physically VERY hard, but it is the best way going to quickly build up a nest egg. (Also, for a female writer, a job like that is a gold mine of source material later on.)

PS: On the subject of PLUS loans in general: just say NO. It is your student's education, and any loans that must be taken out to finance it should be taken out by the student, NOT by the parent. You are not going to be able to get any loans to finance your retirement, and if you are concerned about what you feel that you owe your children, trust me, nothing will be more burdensome to them in the long run than having to financially support you in your old age because you spent your prime saving years paying off their college education debts. (We are going through that right now with my MIL, and it is killing us financially. We are having to dip into our youngest child's college fund to pay MIL's fees for assisted living, and the place is basic. The expense of being old is HUGE, and the cost of college is nothing in comparison. Do not go into debt for your children's educations only to have to turn around 20 years later and ask for double that back again.)

PPS: Ironically, if the OP's child were going to Harvard, she wouldn't be in this predicament, as Harvard is one of a handful of premier private schools that is truly committed to keeping excellent low-income students out of debt. More than likely it is NOT an Ivy.

 

[Arielle22]

I have 2 DDs in college. Both were accepted into schools around 50k but chose a state school due to cost. Each got 20-25k in scholarships but the remaining cost still was more than state school. My DDs also made the Dean's list so their tuition is paid for. Of course, tuition is the least amount of college.

We talked as a family and while DH and I will contribute to their education, they will be paying back most of the loans. My nieces, who are paying back loans now, also talked to them about the reality of life after college with loans.

I think switching schools might be the first thing to do. I understand wanting to give your child the best possible future but you shouldn't put yourself in financial difficulty to do so.

 

[SC Minnie]

I agree with other, it's time to look at a different school, she can't afford this one.

 

[timmac]

Have to agree with several PPs, that the 47k/yr is clearly the main issue here, not necessarily the lack of aid, absentee father, or other red herrings that have been thrown around. I'm sure many of us know people, or even have themselves been through the hard lesson of someone graduation from a college on that price tier saddled with debt and then realizing both student and parents are in a lot of trouble from the payments.

Definitely do talk with the financial aid office, to see what they say, but realize that a 200k education might simply not be in the cards. (And that's fine.)

ETA: I wonder if OP kind of already knows this, at least subconsciously; sounds like maybe there's some feelings of guilt and the like at work too. I'm not looking to pass judgment on OP, only trying to illuminate what might be an issue, so that hopefully it doesn't get in the way of rational decision making.

 

[lustergirl]

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.

Are you still financially responsible for your daughter. I think that you would be able to take advantage of free aid such as the Pell grant. This goes according to your income. You would have to fill out the FAFSA form and submit. Again in agreement with others: talk with someone at her financial aid office. They are very adequate at handling this.

 

[daughtersrus]

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.

$47,000 a year for tuition? What about room and board?

Even if the $47,000 includes room and board, that's A LOT of money? What is your DD getting her degree in ? Will she be able to get a job after graduation where she will earn enough to make payments on $188,000 plus interest (I think that the current rate is over 4.5%).

If you are able to get a loan, that loan is yours. You will be responsible for the payments until it's paid off. Parent Plus loans can not be put in the child's name.

I would think long and hard about your repayment plan before you commit to $200,000 + for a bachelors degree.

 

[Robinrs]

Teenz, it's time for a big dose of realism.

I'm a single parent, too. My son is going to be a junior in college this year.

By the time he was ready for college I was not. I had lost 4 jobs in 10 years to the economy, 3 stations I worked for went dark and had just been with my current company a few years when he was about to graduate. He wanted to go to SCAD or Full Sail, both would've been approx $40000 a year MINUS the dorm.

He was eligible for grants and scholarships but none would cover the complete cost. His high school adviser connected us with a sponsor who would pay the full cost of any state institution of his choice IF he remained in Georgia.

It wasn't his first choice but it was the only choice that was affordable.

That was in 2012. He LOVES his college and it will not be a burden once he graduates. This was important to all of us and should be important to you, too.

My son has to keep a 3.0 average to keep this sponsorship and so far so good. He knows the cost if he doesn't so it keeps him on the straight and narrow. He's not a partier either, so I can relate to your need to accommodate your child, but realize that your circumstances are not the same as they were and she has to make a change.

In the end you will not be overburdened with debt and she will have that degree regardless... and no one will ask her how much she PAID for it.

Have a heart to heart with her about this. Everyone needs to make a budget and stick to it. She will deal with this later in life and she will remember what you taught her. Life is made clearer in the struggle, not in the good times.

 

[cvjw]

$47,000 per year? That is insane. We can afford that kind of tuition, but never, ever would do it. We consider it a waste of money. We made our DS stay at an in-state university so that tuition would much, much lower. We told him upfront that he would not be allowed to spend his college money on an out of state school when he could get a very good degree instate.

I also would never saddle my student with that much student debt. She will be repaying it for what seems like an eternity to her. It will effect her ability to buy a car or a house after graduation. Do her a favor and move her to a cheaper university. She may be upset right now, but will end up thanking you for not saddling her with all of that debt.

FYI, all of the people that I know that have done the Disney college program do it WHILE they are in college, not after graduation. After completing the college program, you then apply for the Disney internship program. Again, all of the kids that I have known that did both programs did them before graduation. Your daughter may want to investigate the programs a little closer so that she doesn't get shut out of them. After college, you apply for a real job at Disney.

 

[leebee]

Sorry, OP, but your DD needs to find a different school. She is going to be SADDLED with crippling debt upon graduation. $19000 is the maximum unsubsidized Stafford loan that undergrads can borrow. At 5%, she will pay back $191 a month for ten years. As you have been denied a PLUS loan, she is eligible to borrow more- up to $57,500 cumulative for her undergraduate education. THat's an average of $14,375 a year (actually she can borrow the least as a freshman and more each year), and will include both subsidized and unsubsidized loans. HOWEVER… this is serious debt. At an average rate of 5%, this would be a repayment of about $610 a month, for TEN YEARS, and doesn't include the interest on the unsub loans that must either be paid from the day the loan is signed, or rolled into the principle. And the really sad thing is, I don't think that borrowing the maximum, even the highest max (as you were denied a PLUS loan) will be enough to cover what your DD's school wants.

Possible solution: It's pretty late for your DD to make any significant changes to her plans for the fall. What if she goes to school in the fall, but immediately starts applying to transfer for Fall 2015? While she is doing that, have her apply for the Disney College Program for Spring 2015. There are lots of tips on the college board here to help her get accepted. SHe'd have to go into debt for only one semester, all her loans would be held in grace while she does the DCP, and then she could start at a far more affordable school in Fall 2015 as a 2nd semester sophomore or a junior.

I just don't see how your DD can stay at the school she is in, with its financial requirements, and ever be able to afford to live as an adult. Go here: http://www.finaid.org/calculators/scripts/loanpayments.cgi
and play around with the numbers to see the real picture of what she is getting into with this kind of debt.

 

[TinkerBelled]

That she's going to a school with that tuition may actually be good news. A good portion of schools that charge that much per year--especially the really good ones--have aggressive financial aid programs.

People get really confused about this. Actually, if you don't make much money, it's generally cheaper to go to a place like Harvard or Yale even than an in-state school. I did a quick compare for Harvard vs the University of Alabama, for an Alabama student whose parents have a $50,000 household income and $15,000 in assets.

Without financial aid:
Alabama: $23,106
Harvard: $63,150

With financial aid:
Alabama: $17,750
Harvard: $4,725

Harvard's an extreme example, but a lot of national-tier private schools have the resources to give a lot more in financial aid.

However, if your daughter is at one of the more expensive private regional universities, which don't have the kinds of resources that the national universities do, perhaps a transfer is indeed the best call.

In other words, talk to financial aid. They'll know what they can do.

 

[dizzneebabe]

I, like many out there, worry beyond belief about how my son is going to pay back these loans. He is at a state school (in IL) for computer engineering and it's running about $31000/yr. $35000 if he stayed in a dorm w/ a meal plan.

He went to a community college for the first two years and then transferred as a junior, only to find they discontinued a summer class that was a prerequisite for his 300 level courses AFTER he was accepted and committed. So...with that, that was going to push him to three more years, rather than two.

At orientation, when I asked his advisor about how he could make up ground, she got a little mad at me and said, "He's not behind. He's where he is. It doesn't matter how long it takes him to finish." Ummm..I'm sorry, but at the tune of $35K a year, it DOES matter.

He only qualifies for the $7500 unsubsidized stafford loan per year. The rest we've had to come up with in private student loans that we are currently paying the interest on, so as to not make things worse when he gets a job.

At this point after two summer school classes, he SHOULD be able to graduate next December. So, 4.5 years total in school.

Even if we had saved EVERYTHING we could have since he was born, we never would have had enough to pay for that!

I'm hoping he gets one hell of a job after graduation...he should...but of course there are no guarantees and competition is stiff where he is. I'm also hoping he lives with us for awhile and can pay them off quicker.

In the meantime, I'm crazy. Crazy, crazy with worry.

To the OP, I echo what everyone has said: talk to the financial aid office quickly.

 

[mom2rtk]

1At orientation, when I asked his advisor about how he could make up ground, she got a little mad at me and said, "He's not behind. He's where he is. It doesn't matter how long it takes him to finish." Ummm..I'm sorry, but at the tune of $35K a year, it DOES matter.

The cluelessness of that advisor's statement really did make me just laugh out loud!

Keep in mind though that her kids will likely attend school there free of charge. Maybe she hasn't processed in her mind just how much money it all is.

 

[sbtrfly74]

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.

You can ask for a reconsideration for the fall semester. In my sisters situation (recently divorcing) my niece no longer had to add her father to her last years income.

I had a situation where I did not qualify financially for financial aid due to too high of income. My DH was in a near fatal car accident in March and was out of work for 9 months. I went in August to the financial aid advisers and asked for a reconsideration. I was granted 5k though it was a community college it at least covered my entire years expenses.

If all else fails.... go to a less expensive school, or will have to take some time off until things straighten out.