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

Cambridge is very unlikely to offer meaningful amounts of aid: almost certainly not at a university level, at a few colleges there may be the odd scholarship for a student from poor Commonwealth countries (eg I’ve seen a few really amazing kids from Africa and India with scholarships) but the US is unlikely to be considered. And since $85K is above average income in the UK it’s unlikely that any need-based grants would be available either.

So depending on subject the cost could be anything from $50K to $65K per kid per year (Cambridge is more expensive than Oxford). I don’t think this is likely to be a viable option unfortunately. It’s more plausible to get scholarship money for graduate study (Gates, Marshall, etc) if you are an outstanding student from a US university.

You could add Utah to your list for auto-merit in the US but make sure you check any specific conditions that apply to these scholarships at each university given your kids are not coming straight from high school.

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This is true, as far as I know: Parent PLUS loans can be used at foreign schools that participate in the U.S. federal student loan programs.

This is because the federal loan program can only pay up to the amount that is not already covered by other financial aid. So, you would have to know what your uncovered expenses are before the Department of Education can tell you specifically how much the student is eligible for.

Parent PLUS loans are not private loans; they come from the U.S. government.

As mentioned previously, the Parent PLUS loan borrower is a parent, not the student. There is no cosigning, and no equity is pledged.

As long as you can pass a basic credit check, you can qualify for a Parent PLUS loan, up to the amount of expenses that are not already covered by other financial aid. Other than that, it does not matter what your income is or what you have for assets.

All of the above being said, taking a large amount of Parent PLUS loans can be very enticing and also very foolish.

Edited to add: doing your own research re: Parent Plus loans may be helpful.

PLUS Loans | Federal Student Aid

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Parent Plus loans are to the parent only, and only the parent is liable. There is no income level to qualify, just that your child (grandchild, some other relationships) is in school and then you can borrow up to the COA. Parent must not have filed for bankruptcy w/i the last 5 years, must be not more than 90 days delinquent on major debts (above $3000?), and not have defaulted on a loan to the government (like their own student loans or a fed mortgage. It’s a pretty easy standard to meet. No debt to income requirement, or that the parent borrow even have a job.

Not saying taking out big Plus loans is a good idea, but it is very likely you’d qualify for all 4 years. Mike Pence had Plus loans when he was governor of Indiana. Martin O’Malley had them when he was governor of Maryland and his kids went to OOS colleges. BIG loans. They were okay with that debt, but I wouldn’t have been.

I’m going to say something obnoxious- unless you are looking at a large bequest in the next few years (Great uncle Harry had no kids, adores you, made it clear when he was diagnosed with emphysema that he had no debt and that both his house on Nantucket AND the apartment on Park Avenue in NYC were going to be left to you) you need to give Parent Plus loans some serious time with a calculator and a spreadsheet.

Funny thing happens when you start down this road- things begin to look like funny money. One kid gets monstrously homesick- the budget you worked out did not include a trip home at Easter. But it’s a long vacation in the UK- what are you going to tell your miserable kid- don’t come home? So out comes the credit card. The other kid has a shot at a terrific and well paying summer job- so even though the plan had been to stay, it would be short-sighted NOT to fly the kid home for a lucrative job, right? Except once the kid is home, the employer realizes that the kid does not have the ability to work part-time over Xmas break and to fill in for fulltime employees over Thanksgiving- so oops- job falls through.

I don’t know anyone who found studying in the UK to be the huge cost savings that had anticipated- three years is a lot cheaper than four, right? Except flights are expensive, loans are CRIPPLING if you sign on at the level of debt you’re talking about, and a plain vanilla Public U with generous merit aid in the US is going to start looking like a really attractive option.

So spend some time modeling out what kind of payment schedule you’d be looking at on these loans. And decide how much austerity- and for how long- you’re prepared to commit to.

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There are lots of private education lenders out there. SallieMae is one. There’s also Discover, Citizens Bank, College Ave, Laurel Road, SoFi and others. Do your research before going down that road - both on potential lenders and if you truly want to incur that level of debt.

My son had a great experience at Oxford and would do it again in a heartbeat.

Retired financial aid professional here. I do not recommend borrowing huge sums of money for college (unless, as @blossom suggested, you have a guaranteed inheritance coming your way). There are too many less costly alternatives for your situation. You’ve gotten some great advice here. Please say no to the options that require hefty parent loans.

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That income makes you eligible for the Excelsior Grant that covers the ~$7k tuition at the SUNYs. If you can contribute ~$5k/year then the ~$5500 federal student loan + ~$3k summer work earnings that should be enough to cover the balance.

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And there is a reason SoFi was able to buy the naming rights on an NFL stadium.

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You’re right, Twoin18, I should have listened to you. You did tell me that Oxford was cheaper than Cambridge but we thought “in for a penny, in for a pound” (and my kids liked the Cambridge version of their courses better than Oxford’s version).
Best regards,
Kelly

Hi Austinmshauri,
SUNY’s nice and all, and the excelsior grant is wonderful in theory. But if you read the fine print, it says something like “subject to availability.” When my kids graduated, they were accepted into our local SUNY, but the excelsior money never came in, I guess due to covid, and then everything went online. The finances in this state are a wreck, and the covid rules seem to change every other day. We looked into Binghamton, and that’s still a possibility. I think of SUNY as if it’s an abusive lover - once bitten, twice shy.
-Kelly

okay, I hear you (and Blossom); it seems like a stupid idea to borrow so much, esp. when so near retirement. . .
Kelly

what is SoFi??
k

Thanks for the list of lenders, but it does look now like we won’t be going down that road.

I’m glad your son had such a great experience at Oxford. We’re now looking into schools that mimic that teaching approach - like Williams - or at least honors programs that make a big school feel small.

Anyway, I’m grateful to all who nominated some schools that offer auto-merit awards.
Kelly

There’s a lot to like about Williams but FYI with regard to the tutorials…about 50% of students take a tutorial class, and the vast majority of those don’t take a second.

SoFi is a private lender specializing in student loans and refinancing student loans. They’ve made a fortune, so much that they are able to purchase ($$$$) the naming rights for the NFL stadium for the LA Chargers and the LA Rams. SoFi can have nice rates for refinancing and probably for direct borrowing too, but they are making a bundle and someone is paying that - students and their parents.

I’m a bit late to the party, but I’m glad I don’t have to be the one to burst your bubble. I’m so sorry. You will not get financial aid at Cambridge, there are no scholarships to make a meaningful dent in the COA, and a family in your income range should NEVER borrow more than the subsidised student loans. Everything else above that needs to be cash flowed. The UK can be more affordable for a full pay family. Not for you. Again, I am sorry.

And no, it’s not appreciably easier to find funding for UK unis if your kids are extroverts. It’s not their fault. They are just right how they are and you will find options in the US.

Yes, that means you need to look at merit options in the US, mostly the South and Southwest. Your kids will be okay.

There is a number of scholarship options for grad school in the UK, mostly Oxford, I think.

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Hi Mwfan1921,
You’ve piqued my curiosity about Williams. Why do you think students don’t want to take another tutorial class?
Kelly

Okay, yes, thanks for answering my question. I’m afraid I’m a bit out of it when it comes to all things sports.
-Kelly

Well, Tigerie, late or not, I thank you for your input.

FYI, Cambridge Trust wrote me back, and said that they usually give about 10,000 pounds toward fees. More is available for applicants from certain countries, but the US is not one of them. I am saying this in case someone else wants this information and does a search in CC.

Best regards everyone!
Kelly

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If you like Williams you may want to consider other NESCAC schools where you would qualify for significant financial aid based on what you’ve shared. Your children’s unique background could be very appealing to these schools and the final COA could be very manageable.

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