<p>Hello, parents of college students</p>
<p>I am a college freshman looking to drop out of my current university and transfer to a community college because I would be completely dependent on debt for the next three years. My parents paid for the first year (apart from a federal $5,000 in unsubsidized loan that I received as financial aid), but are unable to pay for the other three. </p>
<p>We agreed upon this when I entered the school, and I was thankful for their help, but after I finished my first year, I realized that my degrees were NOT worth $60,000 in debt. Furthermore, I did HORRIBLY this freshman year, so I have realized I am not ready for a bachelor's degree. I want to transfer to a community college to get an associates degree, then maybe pursue a bachelor's later when I know what I want and when I can pay for it. </p>
<p>The problem is that my parents want me to go to this community college right away in the fall. They also aren't accepting that I don't want a bachelors right not, but I understand that is a shocker since we are drilled since birth to believe college is the road to success. I DON'T want to go right away because I'd need to sign up for more debt! I mean, the whole associates program would cost $10,000, so that is way less than my state school, but I want to go debt free! If I work a year, I could pay in full the $5,000 loan I took out this year AND pay for my associates degree. Since I screwed up so horribly, I was also looking forward to taking a year off to get a break from school by working and thinking about my mistakes. </p>
<p>All in all, I have about $15,000 to pay for past debts and my associates degree. I could either pay it all off by working a year and staying at home (my plan) OR they'd have to co sign a loan for $10,000 more--loans that have HUGE interest rates because I did so horribly in school and am now unqualified for reasonable ones. Sallie Mae is scary! I do NOT want business with them! They say they want me to go to school right away in the fall because they get a tax deduction and I would lose my health insurance coverage if I am not a student. I looked at Minnesota's new policy under the Affordable Care Act and I should be covered by the time I am 25 unless I am married--being a student is not part of the requirement. I am not aware of the tax deduction amount, but surely it can't be so much where signing onto a horrible loan is worth it. Are my parents being unreasonable or am I?</p>
<p>In my mind it looks like you are being the more reasonable one. You are certainly old enough to make your own decisions and not taking on $60K in debt is a good decision. The one thing that may happen to you is your parents will not allow you to move home. You may have to get out on your own in order to have your own way on this.</p>
<p>Are you over 18?</p>
<p>If you are not ready to attend classes again and want to work, then do so. What are the consequences if you do what you want? Are you dependent on them (your parents) for something you have not disclosed?</p>
<p>If you’re working full-time and paying your loan off and saving for CC you don’t need them for tuition/COA. Is it for housing? If so look to renting a room close to your employment and then when attending the CC close to the CC.</p>
<p>Kat</p>
<p>Many people are unaware of the Affordable Care Act provision, so come armed with that. However, they may not be open to you living at home without a clear plan. Possibly by putting you plan in writing, demonstrating that you are committed to going back eventually by putting your money in a designated account and helping out would ease some of their concerns. They will lose the tax deduction, and that is something to discuss with them.</p>
<p>AS for Sallie Mae versus other loans, you haven’t seen scary until you get deep with a private loan 
Your idea is solid, as long as your parents are willing to support you through this. If not, you will need to find your own housing and adjust to a much longer college plan.</p>
<p>I am over 18 and was depending on them for housing. I am hoping I won’t have to resort to moving out, but I might if they make me sign onto a loan. Another problem is that I don’t have a driver’s licence or car. I am planning on getting the licence as soon as possible when I go home for the summer. My summer job has apartments on site that I could live in until October when I find an apartment by the community college if need be.</p>
<p>Are you sure about the cost of community college? Many students there receive financial aid. If you qualify for Pell grants, your entire cost of tuition should be covered. If you don’t qualify for Pells, there may still be some financial aid available either from the college or from outside sources (I know my local CC has a foundation that funds a few hundred students that apply for scholarships).</p>
<p>That said, you’re probably right about taking a year to work if you don’t feel prepared for a bachelor’s and you’re not ready to pay for CC. Hopefully your parents will see reason about this.</p>
<p>Thanks for the advice! After they help move me out of my dorm, they want a meeting with financial aid at the school I am dropping out from. I am hoping that person can help us have a civil, intelligent conversation about finances. I would be willing to open up a new account for this and show them if I am committed and will offer to do so.</p>
<p>The loans are so scary! Even for a community college, I do not want to risk it! I just don’t understand why they would sign onto that when I can pay for it myself after some time. They should realize that half of students default on loans and they could well likely be held responsible. I have wasted enough of their money by doing so horribly this year, and I was looking to prevent that from happening again.</p>
<p>I haven’t talked to the financial aid at the community college, but I have talked to the financial aid at my state school I am currently enrolled in when I was still on board to come back the following year. Since I have failed some classes, I have fallen below a certain completion ratio that lenders use to determine qualification. The person I talked to said I wouldn’t get any federal loans and I would have less options with private loans. Maybe financial aid is a bit better at the community college, but I want to be prepared to pay it all. I have 20 out of the 60 credits done with since I completed my Gen Eds this year, so that is something positive.</p>
<p>You don’t need to be stating that you won’t get a BA degree. That’s not necessary conversation right now. Right now, the convo needs to be: I want less debt so I’m going to go to a CC for my second year and then figure out what’s next. Keep the BA degree on the table, so your parents aren’t upset.</p>
<p>What was your FAFSA EFC?</p>
<p>Perhaps a good compromise would be to go to the community college part time and pay as you go? You can easily have a job and do this. You will be making progress towards your degree, but not adding to the debt.</p>
<p>A lot of CC students come from a very weak academic background so I’m not sure if there’d be any penalty for low GPA/failed classes at a state school. I know at my boyfriend’s CC, most students do not pay any tuition and many don’t even have to buy books. But most of those are financially disadvantaged to begin with and qualify for a lot of need-based aid. Depends on your income, etc. If you don’t qualify for federal grants/loans, you won’t get aid at a CC.</p>
<p>Okay, I will try to steer away from the BA degree discussion then. I can pretend that I am considering it if that will make it easier for them to get on board with. I made a mistake in that I let my mom do the FAFSA completely. I really don’t know anything about it. That is part of the reason they want to meet with financial aid. I don’t know how that affects this decision. </p>
<p>I suppose I could try the part time option. Taking longer to complete the degree would certainly be better than taking out a loan!</p>
<p>You have good sense. Don’t let your parents’ panic sway you from that. Good luck!</p>
<p>When you drop out of your current university, be sure to do the withdrawal paperwork so that you can be readmitted later if you choose to go back there later (possibly when you are 24 so that your parents’ income will not count against you for financial aid). Many universities will more easily readmit former students who withdrew in good academic standing, so you might as well leave the option open for later.</p>
<p>Your parents may be concerned about losing the tax deduction if you make too much in income for them to claim you. I’m sorry, but that’s just life. You should not be penalized for that, and it should not be a reason for you to not be working to pay off your previous loan and either save towards CC while you take a year off (which I don’t think is unreasonable), or pay for classes as you go on a PT basis. As other’s have reinforced, you will not loose your health insurance. My oldest worked while going to CC and took a few breaks here and there. His first year out of hs he made enough that we couldn’t claim him. We were surprised he’d actually made that much, wondered where all this money had gone, and checked with him to make sure his savings account was growing sufficiently (it was). If you need a break, even a semester, I don’t think that’s too much to ask. I learned from S1, you do not tell another adult that they are going to college if they are not on board. You can, and we did, say if you are staying here and not in school, you are working FT and saving a good portion of your money. It sounds like that’s what you want to do anyway.</p>
<p>I think the meeting with the fin-aid advisor may help convince your parents that additional loans are not the answer. You sound like a smart young person. When you are ready to start classes again, this fall, spring, FT or PT, I wish you the best.</p>
<p>Thank you, @blueiguana! I think my parents might be in that situation where I make too much because I do make a lot at my summer job since I will be working about 75 hours a week. I didn’t realize that’s why they were concerned. So what happens if they can’t claim me? What does that do to them? I hope they realize how much I need a break. I don’t think enough parents realize that a lot of kids are burned out after high school and need time off from the school mentality. It’s better financially as well. That’s awesome that you were supportive of your child when he needed the time off. I am hoping the adviser will convince them as well. I need someone who understands both sides to control our conversation.</p>
<p>It depends on your local economy, really. What job are you planning on getting as a high school graduate that will give you enough money to live on while also allowing you to save $15,000 to pay for your past debts and associate’s degree? Most jobs that will pay that kind of money will require some kind of post-high school training (maybe not a BA, but vocational school or an associate’s).</p>
<p>If you’ve attended college for a year already, it’s possible that you can get an associate’s degree for $10,000 in one year and earn more post-associate’s degree than you would if you worked for a year (at a job you could get with a HS diploma) and then went back.</p>
<p>If your parents paid for the first year of university, can they not at least help you to pay for the next year or two of your AS program? Also, you don’t have to borrow from Sallie Mae; you can get federal loans directly from the federal government these days.</p>
<p>But if you aren’t ready to go back to school, then you will not do well. What is it that you plan to do for a year with your HS diploma, though? Especially if you don’t have a driver’s license or a car? You can remedy the license situation relatively easily, but not the car. Consider that carefully.</p>
<p>Your parents are wrong, though - they can still claim you as a dependent on their taxes and cover you under their health insurance regardless of whether you are a student.</p>
<p>juliet is right. You can still be a dependent even if you don’t go to school.
But in any case, why should you take out loans so your parents have lower taxes? That makes no sense.</p>
<p>You’re both wrong. A parent cannot claim a child once they reach the age of 19 unless they are a full time student or make less than the personal exemption amount which for 2013 is $3,900</p>
<p>Take ownership of your future; but it comes with responsibility. Move out of your parent’s house, get a job, support yourself. Sounds like you’ll be riding the bus. Enjoy your time off.</p>