We received the FA pkg today and It has no mention of Parent PLUS Loan. Last year pkg has a $17k of PLUS loan mentioned in the FA pkg. Our EFC increased by ~1k this year. Why would they not mention about PLUS loan amount when EFC is ~18K.? Our Gross Income increase by 3k this year so a higher EFC of 18k as compare to 17k of last year.
Also they add $2.5K of Perkins loan last year it was Zero. Our income is +100k so not sure why Perkins loan.
They also took out Fed Sub Loan and only offer unsub loan. I thought that in sophomore year (sub+unsub) loan is normally 6.5K but they only offer 3k in sub loan.
PLUS loan is very important for us and we dont want to go out and look for Private loans…
You can still borrow a PLUS loan as long as there is room in the cost of attendance. The school mys just have revised their award letters and not included the loan, as not every family chooses to borrow.
Few correction in my OP. I just check again and observe that our Gross Income increase by $8K as compare to 2013.
Student also added $1.4k as compare to zero in 2013. so our SAR/EFC is ~$19.5K . But the FA pkg putting the Family Contribution as $32K so not sure where they get this big number from.
Since you did the MPN last year, it’s likely still good for this year…maybe that’s why the school didn’t bother to include this year…you just need to go to that link and do your thing.
many schools do not include Plus Loans in their pkgs…parents can still get those plus loans if there are some uncovered costs…your EFC is an uncovered cost. You don’t need the school to “award” you a plus loan.
You can also FIRST ask the school to increase the student’s unsub Direct Loan, so that less is needed for the Plus Loan.
If ALL of the need is covered, then the school just gave a Perkins sub loan instead of a Direct sub loan…likely because I think the interest is lower.
I will Call the School on Monday so they can explain the FA pkg.
Last yr they give us a Grant of $13k which this yr drops to $5k (surprise), I guess they see that parents have $8K more in Gross income then last yr and student has $1.4k. We were expecting the drop will be ~$2k but they shave off 8k from the Grant…
Another thing they did different then last yr is the amount they put in as Family Contribution = COA-Net Cost.
They did not subtract the sub/unsub loan ($5.5k) by Student plus a WS of $3k.
So how PLUS loan determine how much Parent can take it out as loans ?
SAR/EFC # ($19.5k) or Family Contribution # ($32k) as per School provided.?
I will login on the link after talking to School on monday.
My Gross increase due to a Bonus payout by my company and Stock Loss I couldn’t carry over anymore (3k).
I went to the Link and Complete the Plus Loan and get approved in few seconds. MPN is already their from last year.
They mention they will transmit the request to School in next 24 hrs. Hope by monday School has that info so they are in better position to explain the Loan breakdown.
When you call, make sure the school processes PLUS loans from the online request. Neither of the two schools where I have worked recently uses it … parents/grad students can complete it online to find out if their credit is approved, but both schools required a paper request form with a signature. We found this to be very important for Parent PLUS loans, in order to minimize the chance of students completing a loan request in their parent’s name.
Many schools do not package the Parent PLUS in the awards - and in my experience on this forum, a lot of parents get angry when they do, because they feel it misleads students. Parents can always apply for a PLUS loan in the amount of COA - all other aid.
If there is Perkins but no sub, ask the school to switch Perkins for sub … since the interest rate is lower on sub in 2015-2016. What about FWS? Is it part of the package? Does the student want to work in a FWS job? If not, the FWS award can be decreased or completely declined to allow for borrowing more sub.
^^ Last yr I file online and School did not ask for any signed forms. But last yr Plus was in the pkg this yr its not.
Will confirm with them about Plus loan.
They offer Perkins = 2.5k (believe rate is 5%)
Fed sub = 3k
FWS = 3k
He used FWS last yr also I believe 2.5k out of his allotted 3k.
I thought Sophomore gets Total of 6.5k not 5.5k so we missing 1k.
isn’t sub has no rate and un-sub has a 6.8% rate
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Another thing they did different then last yr is the amount they put in as Family Contribution = COA-Net Cost.
They did not subtract the sub/unsub loan ($5.5k) by Student plus a WS of $3k.
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I’m not sure what you’re saying above.
COA - Aid = what the family is expected to pay (minus any economizing with travel, personal expenses, text books, etc)
your FAFSA EFC is $18k? up $1k from last year?
Is this a CSS school? Do they promise to meet need?
What are you saying happened last year and this year?
edited to add…Is this UMiami? I don’t think they promise to meet need, right? And it is a CSS school, right?
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But the FA pkg putting the Family Contribution as $32K so not sure where they get this big number from.
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Yes its the “U” he goes too.
After freshman he has 52 hrs of Credit. (UM 33+ AP19).
Last yr EFC was 17.5k this yr EFC comes out 19.5k as per SAR.
This is a CSS School plus they need FAFSA too.
Yes Student did report his Gross earning on FAFSA because FAFSA asked for it if student has any income. (1.1k from FWS)
In the FA pkg the schools talks about Family Contribution FC.
Last yr FC number was 19.5k This yr the number is 32k.
Looks like they change the way FC is calculated from last yr to this yr.
last yr FC= COA - School Grant - School Scholarships - Students loan(sub/unsub)
This yr FC= COA - School Grant - School Scholarships
They reduce his School Grant/Aid by 8k as compare to last yr. Don’t know why such a big decrease we were expecting 2k decrease due to 2k increase in EFC.
I am not sure “U” promise to meet need 100% but I am hearing they are moving more towards meeting the need then giving Scholarships. Student do have a Full Presidential Scholarship though but not Full Tuition.
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In the FA pkg the schools talks about Family Contribution FC.
Last yr FC number was 19.5k This yr the number is 32k.
Looks like they change the way FC is calculated from last yr to this yr.
last yr FC= COA - School Grant - School Scholarships - Students loan(sub/unsub)
This yr FC= COA - School Grant - School Scholarships
They reduce his School Grant/Aid by 8k as compare to last yr. Don’t know why such a big decrease we were expecting 2k decrease due to 2k increase in EFC.
Student [does] have a Full Presidential Scholarship though but not Full Tuition.
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What is the amount of his merit scholarship? Is it a set dollar amount? or was it said to be something like “half tuition” or similar?
Last year the family contribution was $19.5k and this year its $32k??? Without much of an income increase???
WHEN THE STUDENT was a high school senior, was he awarded any “one time scholarships” to be used for freshman year? If so, then those have gone away.
can you post exactly what his FA pkg looked like last year and what it looks like this year?
Ok, you wrote the above in spring 2014. Your son is premed at UMiami and you’re borrowing the “parent contribution” plus your child has full student loans.
At that point your UMiami net costs were $28k. but it sounds like somehow your situation was “sweetened” and your son’s first year’s costs were dropped to about $19k. Where did that other $9k come from? Outside merit? One time UM awards??
Frankly, it saddens me to see that you’re borrowing so much for a premed education for your son. He’s likely going to need another $220k-350k for med school. I know this because my son is a 3rd year med student. Your family could end up with $300k-450k in debt.
I don’t know what all that undergrad debt is getting for your son.
Sorry was watching Game of Thrones … WoW too many people died in the End…
@mom2collegekids Student has no Savings and all the Money he made with FWS he paid back his unsub Loan.
From this summer earning he is paying back Parents Plus Loan and I am also paying back Parent Plus Loan every month. We already paid back 30% of the Plus Loan We borrowed. And this paying back will continue every month.
Sub loan will be the last thing we will pay off after paying off Plus and unsub loan.
His UM Scholarship is a fixed amount of 25k which will stay same for all 4 years.
He has no Scholarships from High School or any outside scholarships.
UM also gave him a Grant of 13k first year to sweetened the Deal and promised to us face to face twice that the grant will stay same for rest of the 3 years if our Gross income stays the same. They even says if our Gross income decreases then the Grant will in fact go up. ( I believe them but think their is a Grey Area here).
Parent +Student Gross income increase by ( 8k+1.1k=9.1k ). So EFC increase by ~2k but they drop the Grant from 13k to 5k which kind of surprise to us and I will be asking them to explain this drop… They just got a New President and things are changing at “U” .
Yes he is pre-med but we all know pre-med is not a Major. He is doing a double major in Micro-Bio/Neuroscience and a minor in chemistry. I am sure these 2 Degrees are worth something at the end of graduation if he don’t follow the Med School path. But I am sure 100% that he will go for Med School he already started studying the New MCAT so to be ready in his Junior yr.
Our Goal is to wipe out as much Debt when he starts Med school. For him FL and IL Med school will be instate so less Fees may be looking at low 200K for 4 yrs.
I do have a Home Equity which is improving every year, 401k and Pension funds if I decide to switch my jobs.
So I can wipe out all the Debt in 1 Day If it comes to that… Last yr I refinance my house get a lower rate and save lot of $$ plus sold one of my Car (dont need it any more) and other Car will be paid off in next 4 months. So all these savings will go towards paying off the students Loans and some CC Debt.
In 2017 my Daughter will start her School also so that should cut the EFC in Half. She already started looking at schools to get Full ride or Full tuition.
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UM also gave him a Grant of 13k first year to sweetened the Deal and promised to us face to face twice that the grant will stay same for rest of the 3 years if our Gross income stays the same. They even says if our Gross income decreases then the Grant will in fact go up. ( I believe them but think their is a Grey Area here).
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Yes, the Grant seems to be the gray area.
Best wishes for your son. My son has just started his 3rd year of med school. I can’t believe it’s already half over.
As an aside…you mention paying back these loans now…Why aren’t you borrowing less and setting up the 10 month payment plan thru the school. Those plans are usually interest free.
For others reading this thread, if an FA officer or Admissions officer promises you some funding (over the phone or face to face), get their name, and then send immediately send them an email restating what was promised and the terms and ask that they respond by email. Then save that email.
Yes Good luck to your son too Med school goes too fast with all those rotations in last 1-2 yrs and then the Residency.
Next yr My Financial situation will get more better then I will seriously think of setting up some monthly payments with the school.
I agree to get something in writing from these FA officers if they promising something or giving you some info. I have a feeling they will say they ran out of fund and we applied too late even though I was finish submitting my IRS doc by Feb 10 to the School. They did request last month that they missing my doc so I have to send them again.
You should also point out that your increase in income last year was due to a one time bonus/distribution and that it will not continue, and request they reinstate the $13000 grant.
I call the School Today, and they were as surprise as I was why my Family Contribution increase so much.
So they Compare my CSS Profile and find out I have listed my Primary Home Value twice ( as other Real Estate). So they think I have that much Extra $$$. So they ask me to send the CSS discrepancy in writing to them and they will try to fix it… Lets hope they Give us back what student deserve… It was an Honest mistake to list your home value as other or secondary home/real estate…
Its a 6 month old thread but I forget to update with the final outcome. So decided to update now for broader public .
Finally Student get $8K back in Grant from the School. Initially when they get all the documents they still refuse to give back any $$ amount, Talk to couple of FA people on the phone and they told me that even after putting the new numbers the final number did not change and student wont get any more grant $$. So we gave up and and kind of agree with there decision even though we know that they were wrong.
Then we went to School to drop the student in August and just decide to step in the FA office few days before the Fall classes start to ask them to explain why the numbers did not change. The FA lady was very nice and polite and was kind of surprise when we explain the CSS error. She pulled up the old and new CSS on her PC and it took her few seconds to see that we made the mistake and there were notes in the file that it was corrected but grant did not change. She told us let me fix it for you and 10 more seconds we got the $8K grant added. She felt bad and apologizes that we have to go through this and they will fix these types of issues in future. I did suggest to her that school should assign a particular FA officer to each student file instead of who ever pick the phone. Imagine had we not stopped in the FA office we would have never gotten the 8K. I still did not believe when she told me its taken care, so when I step outside the office I checked on my phone and to my surprise the 8k was there in the student account. I forget to get her name or business card but she was very professional and shows how much she care for the student.
So everyone reading this, make sure work with 1 assign FA officer and if you live close by try to talk to them face to face. These FA officers getting tons of calls and there are cases where people trying to give false info to get more $$ from the school. Also take xtra care to make sure CSS/FAFSA info you putting in is correct.