<p>For grad school there are larger federal loans available to the student, no cosigner needed. Or some employers pay for MS. Or many colleges fund a PhD student.</p>
<p>Grad School Annual Loan Limit: $20,500 (unsubsidized only)</p>
<p>Grad School Aggregate Loan Limit: $138,500 for graduate or professional students. The graduate aggregate limit includes all federal loans received for undergraduate study.</p>
<p>I think this poster said that her daughter had one year, plus possibly a summer left (I’m guessing at Dartmouth). If that is the case, transferring would likely entail additional time at her new college. Plus she would not have a Dartmouth degree.</p>
<p>This whole thread is odd. The parent doesn’t seem to want the debt, works in finance, and said the college would happen. Yet at the same time, she finds it fine to seek options that will put her daughter into additional debt.</p>
<p>^^^</p>
<p>I think I’ll make a promise to myself that my kids should get Ferraris…and then show them how to fill out car loans. </p>
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<p>Since Dartmouth meets 100% demonstrated need, it is the EFC that needs to be covered. No offense, but the EFC is your obligation, not hers with the exception of a few thousand dollars that is part of the student contribution. You would be able to borrow your EFC as Parentplus loan but it seems as if you are unwilling to do so. I am surprised that she has maxed out her stafford loan limit (31K) unless she got some additional unsub monies for you being turned down for a PLUS loan. Is she a 5th year student in an engineering program? </p>
<p>It sounds as if OP has already attempted to appeal the package at Dartmouth, who won’t cover the EFC. Is there any way that you can borrow from your retirement account and pay it back over time? While you may not get the benefit of compounding, you will be replacing that money through payroll deductions. </p>
<p>Has your D considered trying to get a small loan directly from Dartmouth (I know that they will make loans to cover gaps in the study abroad programs). At this point she has nothing to lose. But still this may not help as far as your EFC.</p>
<p>At this time I would not worry about grad school as your D would be in a better position to borrow more money if needed, or work and have employer pay for grad school or borrow the total cost of attendance in her own name for professional school.</p>
<p>Single parents really do get screwed with the EFC. Our ‘protected’ savings is very little, and yet all the other fees, tuition, loans, etc are the same as if two parents were working. The tax benefits also phase out at half that of two parent families.</p>
<p>But that’s how it is.</p>
<p>.^
I agree that the protected savings amount for single parents makes no sense. But I don’t know what you mean by “other fees, tuition, loans, etc are the same as if two parents were working.” </p>
<p>Are you saying that if a family only has one parent working (no matter the income), they should pay less that when two parents are working (no matter their income)? </p>
<p>Now…two parents together earning $80k per year with two kids will have a lower EFC than a single parent earning $80k with two kids. That is understandable…the first household is larger and is supporting the costs of two adults. </p>
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<p>Perhaps this is a warning to high school seniors and their parents to be wary about choosing a college that stretches the finances to the limit. The student does not want to enter senior year of college running out of money, leaving the degree temptingly close but just out of reach, and with transfer options more limited compared to transfer options at the junior level.</p>
<p>This thread needs to be a warning to a number of folks who have “promised themselves” or their kids that they will “make it happen” if the child gets into a pricey school…and making it happen means jeopardizing parent’s retirement and putting the child in debt. </p>
<p>In this case, a Dartmouth qualified student would have qualified for large merit or even free rides at various places. I doubt the major or career goal of this student requires an ivy pedigree since only a couple of careers even care about such things. </p>
<p>When students like this get into the work-force and find that they are earning the same as their no/low-debt colleagues who went to affordable schools, these newish grads are going to be very annoyed when a big chunk of their take-home pay is going to service debt while their colleagues are buying homes, investing, etc.</p>
<p>And, this student plans on grad school…unless the grad school is also an elite name, who will care that the undergrad was an ivy if the MS or PhD comes from a school with a less-impressive name? After all, many excellent grad programs are at univs that aren’t “known” as undergrads. </p>
<p>Furthermore, all this undergrad debt is going to grow while in grad school. Sounds like she has at least $30k in debt now, with more debt coming. That debt will all grow quickly.</p>
<p>DIDN’T HIT “POST COMMENT” YESTERDAY----</p>
<p>Thumper: Its not odd. Yes, its the final year, the student doesn’t want to transfer, grades are pretty good. They can graduate possibly w/o summer if they take an extra course one term. When it started the EFC wasn’t has bad and some other unfortunate events happened along the way. </p>
<p>Its trying to say, do I take the debt, use more of my limited retirement money, or the student taking on the debt. At my age (w/a disability growing worse),I don’t know how long I will be able to work, thus I will have her take the debt— and then help her pay what I can. </p>
<p>The purpose of the thread was to find the best Private Loan company. The government based programs are easy, etc. but it is hard to compare the private ones, w/o applying to each to see what rate/terms they will permit. I work in finance. </p>
<p>(Its a sad thing to think about life insurance on my only child, but I believe my work policy does have a small plan now that covers AD&D, etc. Maybe I will look at others, I have some disability insurance and life insurance, so if something happens to me— at least life wise, the student would be fine).</p>
<p>Brown Parent: Thanks for info on Grad debt. I know my student is looking into options, since my student wants law school eventually, but also looking at masters options as well, etc. since they have an interest in pursuing more studies. I don’t know if law is worth it, since that is a substantial amount of debt. Unfortunately I won’t have that much to offer in excess cash flow. My student talks about maybe working a few years to pay back the initial debt, but that will likely be over $50k, not sure how long, especially if they live in DC, Boston, or similar big city. </p>
<p>Brown girl. Look into term life insurance for the amount of the loans. The payback on most loans is ten years. Your daughter is 22-32 during that time…or so. The premium for term insurance for her shouldn’t be too much money per month. </p>
<p>Sometimes “stuff” happens during college. No question, families should plan for four years with the worst case scenario.</p>
<p>I’m assuming your daughter already took the Direct Loan for the upcoming year. If not…that should be the number one item.</p>
<p>Do you need $50,000 or $5000 or $500. There is a big difference between the loan repayment amounts.</p>
<p>ORIGINAL POST: What are the best private loans. Still not many answers to that questions.<br>
Perhaps many CC posters don’t require private loans. I will probably just apply for my student and see what rates there are. With all the debate about the last financial collapse and the worries that student debt issue will be another, they should look at the Private Student Loan industry, since student loans aren’t forgivable, etc. and the comparisons from company to company are very difficult. It is hard to tell all the “fine print” to see about the terms, without going into so many multiple screens (I still like hard copies to read). </p>
<p>Other Items in response:
–There are many reasons someone may need additional time, including injury, illness, etc. It is hard to track all the additional costs resulting from this as well.
–Costs are rising much faster than originally expected. Schools also change how they charge (for instance, the food plan changed and every month it goes over the plan limit. Then there are other costs that aren’t really included in the budget (if you want to be in Greek life, etc.).<br>
–Economy-- maybe people forget about the time looking/applying to schools like this, the economy was good just before the it started to tank. The student had qualifying scores in junior yr. of high school. At one time had equity in home, which I thought would help. The value still hasn’t come back and just at breakeven on small condo (on home that needs a lot of work).
–Promise: The promise came way before junior year====. Years ago, we discussed “if you work hard, and have a shot at a top school, I will help you …” I was brought up to set goals/dreams, work toward them. Without knowing background, the student did many amazing things during those years to reach the goal. I try to stand by my word to work to that end.
–Student is confident: While I have concerns over debt load, the student is confident that they will do well and have often done well and worked toward their goals. </p>
<p>BEST LOAN
Again, my post was looking for the best deal for the student. In the end. Glad this is hopefully the final year to cover this. It will work out one way or another, just trying to make the best of the situation. </p>
<p>Thumper- yes, she already took the direct amount for the year. I already did one plus loan. Perhaps I will do another if she gets an outrageous loan amount. Life insurance is an option, but that sounds so morbid---- if something happened to my only child as single parent I don’t know if I would care what happened to the debt (sad to say). But will look at that option. I also do have decent insurance on myself so my student could pay down the debt if something happens to me. </p>
<p>mom2, the EFC is higher for singles, but the tax benefits are also half. A married couple can make $160k (whether it is made by one person or split) and still get AOTC, but a single family loses that at $90k. The single parent family still has the same tuition, fees, mortgage, car expenses, etc. but only gets half the deductions or they are phased out at half the number. The married couple may have twice the expense for food, but most other expenses aren’t doubled. I pay the same for my medical insurance for me and two kids as I would if I were married and had 15 kids. I pay the same rent, utilities, much much more in car insurance (two teens) than I would if it were 2 adults (married) and 1 child. I still have to fund retirement with 10-15% of family income because I will still need to pay rent, insurance and other living expenses when I retire. I don’t think most married couples are funding double the retirement fund that I am because they won’t have double the expense.</p>
<p>It makes no sense to me that a single making $100k is treated worse than a couple making $150k, even if the single has 2 or 3 kids in college and the couple has only 1. The couple would get the AOTC and the single, paying 3x the tuition, would get nothing. Even dividing an EFC by three would not bring it down to Pell grant level (and admittedly, the $150k family wouldn’t get it either).</p>
<p>PS: Also should something happen to 1 in a couple, there is the other to help them vs. single that won’t. Don’t mean to get on band wagon). My biggest concern is potential loosing the 1 income, being over 50, disability----. (I will have to read up on AOTC,since I am not familiar with it).</p>
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<p>Ok…I’m confused. Are you saying you don’t yet know the amount of loan money your student needs? Or are you saying you don’t want your student to have higher interest rates for the loan amount.</p>
<p>Sorry, yes, outrageous/high interest rate— the loan amount is around another $10k, that’s not counting anything we pay out of pocket (travel, books, extra food, etc.). This is to meet the billing for school.</p>
<p>I</p>
<p>Not wishing to pry…but how much debt will this student have with this additional $10,000. That amount will add over $100 a month to her loan payback each month. But then…it will add over $100 to someone’s payback at some point. This will be for a ten year payback period. So…if the student is looking at the max Direct Loans for four years ($27,000) plus $10,000… She would have over $400 a month in loan repayment when she graduates.</p>
<p>Are you expecting her to also pay back the Parent Plus? If so…that will also add to her payments.</p>
<p>I would look for the lowest interest rate. If this becomes YOUR parent loan, you could go see a lawyer and have them draw up a loan agreement by which this student would understand that this $10,000 is a loan to her. This agreement should clearly state the provisions of the expected repayment including the interest rate, payment schedule, and what will happen if the student defaults.</p>
<p>@BrownGirl2010: Wait - are you saying you have not claimed the $2,500 American Opportunity Tax Credit for your child’s first three years of college?</p>
<p>Thumper-- it is more than the $27k direct loan (also some school loans), plus I took 1 plus loan and may need another plus loan or student loan. It makes me more sick to think about the more I discuss it on CC. Yes, will try to get the lowest interest rate. Part of the intent was that my student would help to repay the Plus loan, but the more I look at this, it may be more unlikely. I also cashed in some retirement funds to help pay other portion of the EFC and other expenses (unpaid internship— that needed living expenses paid, etc).</p>
<p>As a single parent, I have to buy a family plan for insurance at work that costs the same as if there were more than 2 of us. Colleges do require good insurance (and I want my student to have it). </p>
<p>Madison-- not sure I got the Opportunity Tax, someone does my taxes (I will have to check that).</p>
<p>WELL - if anyone has news on best interest rates on student loans (private ones)…last call. I have to help my student apply in the next day or so. </p>
<p>---- I think some have consolidation options that give a longer repayment period than 10 yrs. </p>