Best loan option for US students studying abroad (UK) for entire (3 yr) course?

Paying for College
1

Hi Everyone,
I think I know the answer to this question, but feel compelled to ask anyway. Do you have any advice for how to fund studying abroad for the entire duration of UK school (3 years)? The price tag is higher for foreigners, who don’t usually qualify for scholarships. Their cheery websites blithely declare that US students can apply for US federal student loans up to the price of attendance (tuition, accommodation, living expenses, cable, health insurance, and even travel!).

But when I called the US Dept of Education, they told me that they couldn’t tell me the cap on foreign loans until and unless I had an acceptance letter from a particular school, with their aid offer (or non-offer) in hand. So it’s a catch-22. I don’t want (my kids) to apply for a program that they ultimately won’t be able to attend, just to get the paperwork that will result in the US gov’t turning them down for aid.

I heard elsewhere that US Fed (subsidized) loans are capped at $5,500 for undergrad study, and $20,500 for grad study. A bit more is available (unsubsidized) for undergrad ($7,000), but that the rest would have to be private – PLUS loans or Sallie Mae or something (requiring parent cosigners).

I know some of you will suggest that they apply for scholarships – but these scholarships, if available to foreigners, seem similar to those in the US – they are looking for applicants who are hyper extraverted, have done a lot of service, etc. My kids are the more quiet, nerdy type who have shown not much in the way of “leadership” or star quality. I love them, they are funny and kind and hard working, but are never going to be president of anything. I fear that neither will get into a fancy school in the US that pays demonstrated need or even get the full-ride scholarship from a lessor school, all due to their lack of ECs and that elusive “leadership” quality. They love the UK’s emphasize on merit, but cannot afford the UK price tags.

Cambridge has a scholarship but so far have not revealed whether it’s for 700 pounds or 7,000. Seems extremely competitive and mostly goes to grad students. We’d qualify for financial aid (EFC = 5-7K), and both kids have high stats (DD SAT: 1590; APs: 8 5’s and 4 4’s, GPA 4.0) (DS SAT: 1570; APs: 12 5’s, 2 4’s, GPA 4.0).

Thank you in advance - and thank you for in-depth help you’ve given me over the last several months.
Kelly

2

There is a list of schools that participate in FAFSA and the Direct Student Loans (you can’t get Pell Grants if you go overseas), but those loans for undergrads are the same amounts as in the US ($27K max over the 4 years of undergrad, $5.5K/$6.5/$7.5/$7.5). Grad students and independent undergrads can qualify for more, but that’s not your kids. Federal Student Aid

I don’t know if you can get Parent Plus loans for overseas study…@kelsmom? @thumper1? @BelknapPoint?

But, if you need Parent Plus loans, I would tell you to find a more affordable option. Your kids will both qualify for significant merit at some US schools. Are either of them National Merit Semifinalists? What state do you live in?

ETA: Cambridge and Oxford application deadline was Oct 15.

2 Likes
3

My son just finished a four your program at Oxford. All-in including tuition, college fees, living expenses and travel was about $50,000 a year. We got lucky and moved a fair amount of money when the pound was cheap. Now that its back at 1.38, going to be even pricier. Unsubsidized Stafford loans and Parent PLUS loans are your only Federal options. Private loans an option too.

4

Hi
Thanks for your input. I’ve heard of Parent PLUS loans - parents cosign and/or put up home equity, right? I wonder, too, if they count for overseas study. And Sallie Mae, too?

Anyway, we skipped the psat - didn’t even know about it at the time. They did take the SATs that fall, though. They were in regular school for 9th grade, but then homeschooled for 10th grade, their last year of school, after which they graduated. We sort of fell through the cracks as far as national merit stuff goes. We live in NY.

We did apply to Cambridge on Oct 15th. Doing the SAQs now (and getting haircuts, etc., to take photos). Should have figured out the financial angle prior to application, but we were so focused on writing those personal statements…

5

Hi HazeGrey,
Congrats on your son’s accomplishment! It was great that you were able to move money over while the dollar was strong against the pound. Now, you’re right, the exchange rate is pretty bad. By “private” loans - do you mean Sallie Mae? Melissa said that Parent Plus is Pretty Pricey!
Thanks,
Kelly

6

Parent Plus loans are the parents responsibility, there’s no cosigning. And depending on your income, you might not be able to fully take what you want/need for 3 or 4 years of school.

Your kids could potentially get private loans for which a parent co-signor is required, but again, why take more loans than the $27K, especially when your EFC is only $5K-$7K? Having each kid graduate college $100K-$150K in debt is a non-starter. That debt will hamstring them for a long time.

3 Likes
7

Dear HazeGrey,
If your son had it to do over, would he have gone to Oxford? Or was that just the best option for
Regards,
Kelly

8

@kelly2022 - another option besides top schools with need-based financial aid. That’s auto-merit schools. There are thousands upon thousands of kids in the US with high stats that get merit at auto-merit schools. And they do well!

ECs and leadership and talents are not figured in the equations.

The schools aren’t like Oxford of course. But - many kids can get through with no loans - and can get great jobs out the door. just thought I’d throw that thought out to you! Your kids have great stats btw.

4 Likes
9

Yes, you are right, being saddled with such a high amount of loans is no way to start a life. Our income is $85K for a family of 4. So we likely wouldn’t qualify for much in the way of parent loans anyway.
-Kelly

10

Hi Bgbg4us,
Thank you for your input (and your kind words about my kids). I have never heard of “auto-merit” colleges. Can you give me an example?
Thanks,
Kelly

11

Your kids sound amazing in every way… amazing stats, especially at such a young age!

I’m going off topic on something I don’t know much about… ha!… but I’ll bring this up since you mentioned falling through the cracks with NM options. It sounds like your kids have graduated early. If that’s the case, how they spend this year could affect their admissions options (at least at US schools). For example, if they take any college classes I believe that would prevent them applying as freshmen; they would be considered transfers. I just bring this up to make sure you are asking those questions and aren’t hit with any unpleasant surprises later. I’m sorry I don’t know enough about your situation to be of more help than to suggest looking into that, if you haven’t already.

12

Thanks, DramaMama, thank you for the tip! I learned on College Confidential and by scouting around college websites, that schools really don’t like kids who graduated taking any college classes. It seems to affect their aid and a whole lot of other things. It’s fine while they are in high school (dual-credit), but not once they’ve graduated. My kids were too busy doing home school work prior to graduation, and in the year after, too busy studying for AP classes (since they crammed all but calc-bc into one year). Now they are enrolled in some free online courses (like Harvard’s CS50 course, and a course on some Australian Aboriginal language), and have no plans to take any organized courses prior to college. They did graduate 2 years early, but are with their same-age peers now applying for college. As soon as applications are done, they are going to learn to drive and do some other things they missed out on!
Thanks again,
Kelly

1 Like
13

I’m not @bgbg4us but will answer with a few I know. I’m sure others can add more. These are schools that automatically award merit based on GPA/test scores. You can easily look it up on each school’s website.

Univ of Alabama
Univ of Arizona
Univ of Mississippi
Univ of Oklahoma
West Virginia
Miami (Ohio)

As an example: here is a link to UAlabama. Scroll down for the chart on auto merit.

https://scholarships.ua.edu/freshman/out-of-state/

2 Likes
14

I like your kids more and more! They will be a fantastic addition to any campus.

15

Woo hoo - I never heard of “auto merit” some of those schools we’d not considered, but they sound good now.
Kelly

1 Like
16

Thank you, DramaMama!
k

17

My D really liked Miami Ohio. It’s a public ivy, gorgeous campus. We know several kids there and they love it.

1 Like
18

Add University of New Mexico to your list of schools with excellent auto merit.

2 Likes
19

Thanks - I really love the vibe at Miami. Never considered it before, but am now!
k

20

Thanks, Thumper, I will look into UNM, too.
-Kelly