Catch 22 Income and Financial Aid

Paying for College
1

<p>Hi Everyone,</p>

<p>This question pertains to both student loans and grants. I am middle-aged and hoping to return to college. Though my earnings have been very inconsisent due to not having a degree and therefore, not being able to get into a field that is right for me, my income has averaged somewhere between 16,000 to 21,000/yr. I think that this may be too high to qualify for significant financial aid, though I must earn at least this much to survive. Even with this level of income, I'm left with a negative cash flow due to some large, unexpected expenses of late.</p>

<p>To compound the problem, my 2010 tax return shows my highest income ever, 31,000, though this is due to a confluence of factors, not related to earned income and I am currently unemployed. Also, I received a minor inheritance when a family member passed away, recently. It is not enough to pay for college or even last very long, given my employment situation and negative cash flow but I'm afraid it may also exacerbate difficulties in being able to qualify for a student loan.</p>

<p>I'm puzzled in that, over the years, I've been aware of many people whose income was much larger than mine and yet, they were able to receive lots of financial aid. I'm guessing that the reason may have been that they were still listed as dependents on their parent's tax returns and when considered as a separate entity for the purpose of financial aid, had little or no income. Of course, this is not the case for me. </p>

<p>Still, I keep hearing of programs and adjustments to programs to help people go back to school to keep up with the changing needs of business. Nevertheless, each time I talk to a financial aid representative, it seems nothing has changed.</p>

<p>So, my question is, "Is anyone aware of a means to overcome this dilemna of apparently, earning too much to qualify for financial aid but needing to earn that much to live?"</p>

<p>My sincere thanks to all who reply with any information or insights, whatsoever!</p>

2

<p>Your earnings are nowhere near the level that doesn’t qualify for financial aid. But that doesn’t mean you’ll necessarily get financial aid grants.</p>

<p>You need to fill out the FAFSA, for starters. [Home</a> - FAFSA on the Web-Federal Student Aid](<a href=“http://FAFSA.ed.gov%5DHome”>http://FAFSA.ed.gov)</p>

<p>That will tell you your eligibility for the limited federal direct aid available. After that, need-based financial aid varies widely depending on the colleges you are looking at attending. A few with deep pockets are very generous, most are not.</p>

3

<p>Thank you, Polarscribe.</p>

<p>Yes, I’ll be submitting a FAFSA soon. If I couldn’t get a grant(s) that would be okay, I just need to be able to get enough in student loans to pay the tuition, etc.</p>

<p>The school I’m planning to attend is small, so there’s probably not much I can expect in the way of needs-based financial aid.</p>

4

<p>*Still, I keep hearing of programs and adjustments to programs to help people go back to school to keep up with the changing needs of business. Nevertheless, each time I talk to a financial aid representative, it seems nothing has changed.
*</p>

<p>I think that most of these programs are NOT run through colleges and college financial aid offices. You will need to get more resourceful to find these programs and start asking around other local and state agencies to get on the trail of these particular kinds of programs. Many many years ago one of my siblings stumbled upon a free training program through the governement and afterwards was placed in a great job that she is still at ten years later. It was not a degree program, but the job training was intensive enough to get her a job that has her living a normal financial life and no longer scraping by. I guess be aware that whatever programs are out there right now, most are probably not aimed at supporting someone long enough to get a college degree and rather is more likely to give support toward job retraining or certification, which is usually a shorter duration and shorter set of classes (often 6 months or less). This info is generic, but it might get you started.</p>

<p>As for financial aid for college – just because a school is small doesn’t mean it has no grants to give. However, chances are unless it has a good endowment, grants (free money) will probably be limited.</p>

<p>If you give more specifics about which college or info about how much tuition is going to be you may get more targeted advice. </p>

<p>You may need to consider going part-time for awhile. What do you plan to major in? Are you certain that a degree (4 long years) is what you need to boost your career? There are many vocational paths that lead to solid and high paying careers.</p>

5

<p>Unless you have substantial assets, an income of $16-$21k should qualify you for a Pell grant. Everyone is able to get at the unsubsidized Stafford loan (although I can’t remember the amount for independent students) regardless of income. If you’re going to a state school you should be able to cover tuition at most of them (depending your state).</p>

6

<p>Hi AnnikaSorrensen,</p>

<p>I already have the equivalent of more than four years of college in terms of credit hours, additional certifications and relevant life experience. The program I’m interested in, counseling psychology, would involve two years of additional school; about a year to complete my bachelor’s degree and another year to obtain my master’s degree. The latter is necessary, as the field I will be entering requires nothing less. The bachelor’s program would cost about $20,000 and the master’s program about $27,000, so a total of $47,000.</p>

<p>Because of my relatively advanced age, I really need to get it all done as soon as possible. Trying to go to school and work full time, though necessary, is very difficult for me. I have tried two or three times and failed in the past. This is primarily due to the fact that, because I’m ill-suited to the kinds of jobs I can get without a degree, it is hard for me to keep a steady job. High pay is not my primary criteria in choosing a career, rather it is being in something mission-oriented, personally fulfilling and engaging. Experience has taught me that this is not just what I want but what I absolutely must have. </p>

<p>Yes, I think I need to search outside the school finance programs and consider all sources. Thank you for reminding me to look at the big picture in that regard.</p>

7

<p>Are you a household of one? If so, you may not qualify for a Pell Grant this year because of the inheritance.</p>

<p>The income for a “household of one person” is calculated very different than the same income when it supports several family members. </p>

<p>Single person households are expected to have a greater share of their income go towards college expenses. </p>

<p>With an income of 31k for 2010 for a single person household…and it sounds like you have some of that inheritance in savings, then your EFC could be above the threshold for Pell Grants. </p>

<p>If so, you may want to wait until 2012 to go back to school.</p>

8

<p>Thank you, WandMParent.</p>

<p>Don’t know if my inheritance might be considered a substantial asset but if it were, it would be the only one. Yes, it seems that I had heard that most everyone qualifies for the Stafford Loan, just that it might not amount to much. What is the difference between a subsidized and unsubsidized loan? </p>

<p>The school I’m looking at is not a state school, rather it is a private school. Is that going to make a big difference as to school loan eligibility and amount?</p>

9

<p>Hi mom2collegekids,</p>

<p>Yes, I am a household of one. And yes, I had thought it might be tougher for a single person to qualify with my income, especially with regard to the 2010 tax return and my inheritance. </p>

<p>I think you are probably right in that it would be hard for me to qualify for a Pell Grant but what about a student loan, sufficient to pay the tuition. Is that a long-shot, as well? </p>

<p>The school finance office tells me they would go by my 2010 tax return through May of 2012, so if this is a deal breaker, I would have to wait at least that long. Would it really be worth waiting that long, in terms of the amounts I might be eligible for then, as opposed to now?</p>

10

<p>

</p>

<p>The subsidized loan’s interest is paid by the government until a few months after you graduate; the unsubsidized loan’s interest starts accruing right away. </p>

<p>It really depends on how much the tuition is. If your state is like mine (Virginia), the Stafford Loan pretty much covers tuition at all but the most expensive in-state schools.</p>

11

<p>Thank you, WandMParent.</p>

<p>For the completion of the undergraduate program, I’d be looking at a little over 20,000 and for the master’s program, 27,000. The total would be 47,000. I’m in Oklahoma. Don’t know what the Stafford Loan might or might not cover here. If memory serves, it seems I heard of extremes on both ends of the spectrum.</p>

12

<p>Since you are an independent person, you can borrow larger amounts.</p>

<p>It sounds like you have junior standing…I think you can borrow $11,500 for each of the next 2 years.</p>

13

<p>Thank you, mom2collegekids.</p>

<p>Yes, I have no remaining, living family and have been independent for a very long time. Yes, I think the previous credits I’ll be able to transfer would place me in a position comparable to a junior. Basically, I’d be fulfilling residency requirements and picking up the higher level core curicula for my major for the first year. 11,500 per year would give me about half of what I need. Hopefully, I can find some additional funding through other sources, though I expect they would be small by comparison.</p>

14

<p>Thanks to everyone who responded!</p>

<p>mom2collegekids, you were extremely close. Once I’d completed the FAFSA, I got an estimate of 12,500 for the first year.</p>

<p>Of course, I still have to meet with the financial aid people from the school to find out the exact amount and about other programs or sources of aid I might qualify for. But just having this estimate gives me something to work with in terms of planning and takes a big load off my mind.</p>

<p>Thanks again! :)</p>

15

<p>

</p>

<p>What does this mean? Are you NOT a resident of Oklahoma at the present time? If you are not, you need to be CERTAIN that you can establish residency WHILE you are attending college in Oklahoma. At most places, you are required to establish your residency for 12 months PRIOR to enrolling in college. However, this might not matter unless you are considering enrolling at an instate public university in Oklahoma.</p>

<p>How old are you? You say you are an “advanced age”. If so, you might be considered a “nontraditional student” (someone who is not between 18 and 24) and you might find some scholarships or grants for non-traditional students.</p>

<p>I would suggest that you have a very candid discussion with the folks at the college where you plan to enroll. Find out what types of scholarships might be available for students like you. There might be something…and there might not. But check.</p>

16

<p>Hi thumper1,</p>

<p>When I’ve looked into completing my education in the past and mentioned that I have the equivalent of more than a four-year degree, in terms of credit hours, certifications from tech schools and other programs outside a traditional college degree program and life experience too, I 've been told that regardless, I must complete at least 30 credit hours at the degree-granting school in order to satisfy “residency requirements” at that school. I can see how my use of that terminology could easily be construed as being a non-resident of the state but no, I’ve lived here just about all my life. </p>

<p>I’m 54 years old and I never would have thought of the non-traditional student angle but I know this type of thing is available for some. Thank you! I will definitely look into that!:slight_smile: Plus I have life experience(s) which are particularly relevant to my major and area(s) of intended specialization. I keep thinking that ought to count for something along the lines of financial aid but don’t really know to what extent or end that might be considered.</p>

17

<p>anybody…GOOD FOR YOU!! Many folks talk about going back to school but don’t. I hope it all works out for you. Do look into funding for adults returning to college. There might be something for you.</p>

18

<p>good luck!!</p>

<p>p.s. has anyone looked at the ‘tags’ section at the bottom of this thread? i just noticed it and it’s very offensive! moderators need to do something about that!</p>

19

<p>Thank you, thumper1 and calimami!</p>

<p>Whoa! No, calimami. I hadn’t noticed that before. It’s really inappropriate for a forum like this! But now I’m curious…aren’t the tags based on keywords, extracted from the texts of the relevant thread? The other terms seem to match that description but I can’t imagine how anyone would derive the sentence in the middle from this thread or any others on this forum, for that matter.</p>

20

<p>What were the tags? All I see is “financial aid” … How are tags created on this site?</p>