About The Federal Direct PLUS (Parent Loan for Undergraduate Students)

<p>I'm going to attend SCI-Arc this fall and unfortunately I didn't receive any grant.
but they offered me Direct PLUS loan which can cover almost entire tuition.
I'm worried about this and I would appreciate if anyone could give me some info and advice about this.
Thank you very much! </p>

<p>Well, this is for your parents to decide. this loan would be THEIR loan and it would be THEIR obligation to pay back. YOU were not offered the Plus loan. That is being offered to YOUR parents. </p>

<p>How much do they want to pay out of pocket towards your college? How much do they want to borrow and pay back?</p>

<p>Most parents will not do Plus Loans and few will agree to large Plus loans because most parents cannot afford to pay them back. Most students cannot afford to “help” pay those loans back.</p>

<p>If you’re thinking that YOU would pay those loans back, you need to consider:</p>

<p>1) how much will be the total amount borrowed by the time you graduate?
2) would your parents agree to borrowing each year AND will they QUALIFY each year? (many parents can’t qualify or they can’t qualify for any following years of schooling.)
3) What would the monthly payments be after graduation
4) What is your career goal and how much will you be earning upon graduation? </p>

<p>it really sounds like this school is unaffordable. What are your other options and what are your parents saying?</p>

<p>I took out a PLUS loan. For me, it seemed as though it was the easiest and best option, mainly due to the terms. </p>

<p>There was a proviso that I discussed with my kids: The loan amount was only for the meals and housing portion of their bill. They were on their own for the tuition and expenses part. Since they were out of the house for several months, I’ve taken the cash savings on groceries and spending money and put it toward paying down the principal immediately. I also have life insurance, a decent amount of home equity, and (fortunately) a very good credit history.</p>

<p>I don’t feel as if I’m in much of a hole, and there’s a Plan B and Plan C. Plan D is that I own a staffing service. So, the kids know that there is a final option: Do well, live within your means, only make promises that you know you can keep (that’s what credit is), or else you work for me.</p>

<p>It’s worked so far. Fingers crossed.</p>

<p>“They were on their own for the tuition and expenses part.”</p>

<p>Well, that’s a big chunk that your kids are covering. Depending on the school, that can be $15k-$45k+ per year. Maybe your kids had scholarships to put towards those costs? otherwise, how are they funding that??</p>

<p>R&B would be about $12k per year. That’s likely a small amount compared to what the OP is talking about. </p>

<p>these are Sci-Arc’s expenses PER SEMESTER so double them by TWO.</p>

<p>2013/14 TUITION & FEES FOR NEW STUDENTS
(PER SEMESTER):</p>

<p>Tuition
Administrative fee
Student Union fee
TOTAL</p>

<p>$18,300
$300
$50
$18,650 << for tuition per semester plus fees.</p>

<p>Ancillary and living expenses
The following additional expenses are estimates calculated for an unmarried student for a one semester (four month) period. These figures should be used only as a guideline. Travel to and from California is not included.</p>

<p>Estimated expenses (per semester)<br>
Course supplies & books
Room & board
Loan Fees
Transportation
Miscellaneous
TOTAL</p>

<p>$7,060
$7,236
$175
$712
$1,268
$16,451 << room board books, etc per semester.</p>

<p>This school costs about $70k per year if I’m adding this up correctly (and maybe i’m not).</p>

<p>@spacemaned</p>

<p>The above would not be workable even for your own kids if they’d be expected to pay tuition plus expenses unless they have some sort of alternative money source. And the OP seems to be wanting to borrow the whole $70k per year! Yikes!!</p>

<p>And is this a 4 year program or 5 year? These costs are like med school…and this is crazy for an arch degree. There’s a glut of arch majors - many are underemployed.</p>