Best Student loans and when do you take it?

Paying for College
41

Just to clarify…are your parents citizens or permanent residents?

42

Yes but it’s together both parents working but situation can change and they have tons of expenses I would still say more middle income family not a great situation what I can understand my family is.

43

We are citizens , my parents been here for 20 years

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44

Best case scenario, to be followed for year1-3 at least:

  • your parents pay for your first year in full. In April you borrow the federal FAFSA loan and put it in the bank for later. You work on campus or near campus for your own personal expenses and the cost of books, so that that money can remain in your 529 instead.
  • second year: your parents pay for your first study semester from the 529. Second semester you go on co-op for 6 months. 1/3 amount goes to housing, 1/3 other living expenses and taxes, save 1/3 - probably 5 to 6k can be saved over 6 months, but it’llrequire frugal living and discipline. Put that in the bank and in April you borrow the federal FAFSA loan again, put it in the bank.
    Between co-op and FAFSA you now have 15-20k in the bank.
  • 3rd year: same as 2nd year.
    You now have 30-35k in the bank and your parents still have 50k left in your 529.
  • You can pay for the 4th year outright with 30k from parents, 7.5k federal loan, and what’s in the bank and have some leftover for your 5th year with co-op 1st semester: 20k from parents, 7.5k federal loan, 6k saved from co-op = your parents only have to borrow ~20k for your last semester on top of the federal loan.
  • this is only possible if you spread costs over 5 years and 3 co-ops. The last co-op should be very well paid though.

You MUST NOT turn down/refuse the federal loan. YOU must take it at the end of the school year to bank until you need it.
Your PARENTS must delay taking a loan till your last year or so.

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45

Your parents live in NJ, I’m a parent in NJ. NJ expenses are ridiculously high, especially housing. Salaries are higher, but usually not enough higher to make up for the COL difference, which is why folks are fleeing the state. It’s a great state, has a lot to offer, but no one is moving in unless they have to.

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46

Make sure you do this in a timely fashion. You need to have everything completed well before the end of the academic year. Talk to financial aid and find out the deadline for doing this…then do it EARLIER than the deadline!

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47

Thanks everyone , this is really a great plan and help in advising.

48

Yes totally agree

49

Borrowing as you go along never ends well. You are NOT obligated to attend any school you can’t reasonably afford. $100k plus in loans is not reasonably affordable and can seriously cripple your future.

Another thing to consider. Even if you plan to take out loans, it doesn’t mean the bank will approve them. These are private loans and are subject to credit approval and debt-to-income, etc. You don’t want to be stuck in a situation where your parents were borrowing money, then someone suddenly gets laid-off. If income changes, all bets are off and the bank can and WILL deny loan requests.

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50

You have had several people noting that this school is unaffordable for you. You can contact your schools that you declined your acceptance to and see if they will admit you - sometimes they will if you are a strong candidate. It makes no sense to me to take on 100k for undergraduate debt when you cannot afford it (which you and your parents cannot). In this case, as a CS major, it also will make ZERO difference in the type of job you get after graduation and the salary you receive for it.

I am sorry you are in this situation!

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