Complete Confusion on Paying for College

<p>I am completely lost as to how paying for college works. I understand FAFSA will generate an EFC, which will be the minimum amount of money I'll pay, but I'm wondering how people afford college. The schools I've been accepted to are Indiana University, University of Illinois, Purdue, Wisconsin, and University of Missouri. All of these schools are priced in the upper 20's to mid-upper 30's a year. How do people afford that? I've done an EFC calculator and received around $6. I've read statistics from schools that state most people graduate with debt of around $20000. How are they figuring that? What I'm trying to get most out of this thread is realistically how much I'm going to have to repay in debt and examples of your EFC's and what colleges gave you as a financial package. Im sure that many people are wondering what schools gave people in relation to their EFC and hopefully this thread can help others as well.</p>

<p>In olden times, people lived well within their means, denying themselves a bling lifestyle so they could afford to send their offspring to college. In other words, parents saved for their children’s education.</p>

<p>What are your parents telling you they can afford? If they are telling you that they have no money to help you, then wait and see how the colleges present their financial aid to you and if you can’t do it on your own, you may need to spend 2 years at your community college and then transfer for the final two years. Meanwhile make sure you line up a part-time job this summer to cover spending money, books, etc. The $20,000 is a rough estimate from Stafford loans. All students can take out Stafford loans and there are no co-signers needed. The amount varies from freshman year to senior year but a ballpark is $5000+ for freshman year and so on. The Stafford plus some savings plus any money your home state may have available will cover or come close to covering the costs of a community college. Finally your best “cost option” generally will be your state schools as opposed to publics where you are out of state.</p>

<p>People apply to schools that they can afford. Before selecting what colleges to apply to, they figure out how much their families can afford each year, and how much in loans they are willing to take out. They thoroughly learn about the financial aid policies of colleges before applying to them. If they need lots of financial aid and the college has minimal aid, they apply elsewhere.</p>

<p>That also was the case when I was young. Most people can’t afford OOS publics because only 2-3 of them are able to meet the full demonstrated need of OOS students. Those schools are UNC and UVAand perhaps W&M. Most people can’t afford private universities. Most people can’t afford to go to college far from home. That’s why most people go to in state publics within 250 miles of their home. Many people --including many smart people – also start college by commuting to community college, which saves a lot of money.</p>

<p>Most people can’t afford to go to the majority of colleges, which aren’t able to meet the full documented financial need of their students. The few colleges that are very generous with need-based aid are places like HPYS, which are the hardest colleges in the country to gain admission to.</p>

<p>Swimmer, unless you’re in line for lots of merit aid at OOS schools (and that means the schools have to offer such merit aid and also your stats will need to be at the top of the admissions pool), you’re unlikely to be able to afford any of the OOS publics that have accepted you. It also would not be wise to take out the large loans that you’d need to attend those schools. If any of those schools are in-state, and you applied for need-based aid, you may get some help, though none of those schools guarantees to meet the full documented need of even in-state students. If your stats are high for the school and you’re also in-state, you may get some merit aid.</p>

<p>To go to an in-state 4-year public, you’ll probably have to work-- summers and during the school year, take out loans and get help from your family, who also may need to take out loans. You’ll be in better shape financially if you start at community college and then transfer to an in-state public.</p>

<p>This site will give you lots of info about specific colleges including their costs and average financial aid: [College</a> Navigator - National Center for Education Statistics](<a href=“http://nces.ed.gov/collegenavigator/]College”>College Navigator - National Center for Education Statistics)</p>

<p>Remember that for need-based aid at OOS publics, in-state students tend to get that aid, and even for them, the aid doesn’t usually meet their demonstrated financial need. There’s little – if any need-based aid – for OOS students.</p>

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<p>I am completely lost as to how paying for college works. I understand FAFSA will generate an EFC, which will be the minimum amount of money I’ll pay, but I’m wondering how people afford college. </p>

<p>The schools I’ve been accepted to are Indiana University, University of Illinois, Purdue, Wisconsin, and University of Missouri. </p>

<p>All of these schools are priced in the upper 20’s to mid-upper 30’s a year. How do people afford that? </p>

<p>I’ve done an EFC calculator and received around $6. *</p>

<p>Your EFC is $6?? </p>

<p>You’ve applied to out-of-state publics that don’t give the aid that OOS students need.</p>

<p>What are your stats? </p>

<p>Have you been awarded any scholarships?</p>

<p>What is your home state?</p>

<p>Did you apply to financial safety?</p>

<p>Unless you get a big scholarship, you’ll probably have to go to your in-state school.</p>

<p>You’ll have to go to a 4-year in-state public if you applied in time, and if you submitted your financial aid app in time (aid tends to be given out first come, first served at publics), and if despite not getting aid that meets your financial need (very unlikely that your state school can meet your demonstrated financial need) you still can take out loans and get other help to attend it.</p>

<p>I see from another post your stats are:</p>

<p>29 ACT
4.6 GPA UW
50-300 Class rank
Decent ECs with good work experience</p>

<p>I also see that you’re OOS for Wisconsin. </p>

<p>I hope that you’re instate for Indiana since you applied to both Purdue and IU. </p>

<p>in-state COAs </p>

<p>$20,097, INDIANA U
$20,368, PURDUE</p>

<p>

I’ve often wondered where that number came from. Just to be clear, the $20K is only the average Stafford Loan debt upon graduating. It does not include any other loans the student is able to get, or any loans the parents co-sign for or take out solely in their own names (such as a home equity loan). Are there any figures on what the true amount of debt an average family incurs to send one child to college?</p>

<p>I know less debt is better, and I’m not suggesting to the OP that crippling loans for 10 years after graduation is the best course to pursue, but I am curious how much debt the “average” family actually has to incur to get one of our little darlings through any of the $20-$35K schools. Anybody have any facts?</p>

<p>aglages, it’s an interesting question. I’m guessing for the vast majority it is Staffords or a combination of student Staffords and parent PLUS. For us, we required the kids take out Staffords. We declined PLUS and are paying with a combination of savings and belt tightening…lots of belt-tightening LOL. For us we were adverse to the “loan” route given our ages and the economy for our parent portion. S1 and S2 both received/have received "merit monies"that discounted the price so we’re handling it.</p>

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<p>Oh my gosh. I am so sick of this argument. My parents lived within their means, but still couldn’t save for my education. They were too busy paying off my mother’s education bills and now my dad’s medical bills. Quit acting like middle class parents who can’t save for education are terrible people going to St. Bart’s every weekend driving their mercedes</p>

<p>OP-I know, for me, I had to find a true financial safety(bama) because, without a miracle, it would be impossible for me to attned just about any other school in the country. Either that, or I would be starting at a CC</p>

<p>Can you further address your EFC. By the way you wrote it, I’m wondering if you might be looking at it backward. The EFC is your Expected Family Contribution. Are you thinking it’s the amount of aid offered?</p>

<p>I also have to assume you applied to IU/PU (on time) which offer you guaranteed scholarships - I think $5000 a year based on your stats. AND they have many scholarships beynd that. But, first I think I’d want to be clear on your understanding of your EFC. </p>

<p>Also, re: IU/PU…the $20,000 is an average/ballpark COA. You CAN go for much less, one example is to save a few thousand on your housing (there are a few ways to do that, check the website for residence scholar…probably too late for that…or other certain areas that can be selected for a housing savings. I think you can do it for $15,000 ish, less yout $5000 scholly = $10,000 COA per year. That’s a nice start! Summer job, even winter job, scholarships within the school and department (did you apply? if so, were you asked to submit a selective scholarship application?). Like you, my D would LOVE to attend a private OOS school, but she’s stacking scholarships at IU to the point where it is going to be half price to free…and …well, THAT is where she’s probably going to HAVE to go…like it or not and no matter her abilities.</p>

<p>^^^
momofthreeboys: We plan on doing something similar to your family, Staffords, savings and “some” belt tightening…but there are only a limited number of notches on our belts…so we will have to incur some debt beyond the Stafford Loans. Because of our ages (early 50s) we definitely want to avoid touching any 401Ks and retirement funds. </p>

<p>Of course we could spend all our retirement money on our children as I’m sure once they graduate from expensive prestigious colleges with well paying jobs that they will take care of us for our remaining years. Perhaps not.</p>

<p>I’ve often wondered where that number came from. Just to be clear, the $20K is only the average Stafford Loan debt upon graduating.</p>

<p>The New York Times published that at graduation, the avg student had $20k in debt. That didn’t include parent’s Plus loans, etc, but it did include all student school-related debt (Stafford, Perkins, co-signed loans, etc).</p>

<p>It did say that the avg private school student graduated with $25k in debt.</p>

<p>*Like you, my D would LOVE to attend a private OOS school, but she’s stacking scholarships at IU to the point where it is going to be half price to free…and …well, THAT is where she’s probably going to HAVE to go…like it or not and no matter her abilities. *</p>

<p>IU may not be your D’s top choice, but IU is a pretty darn good financial safety to have. :)</p>

<p>Congrats on your D’s scholarships! </p>

<p>(BTW…did IU give her NM money?)</p>

<p>Yeah “mom2college”. Thanks. And she did get NM money offered. It’s GREAT!</p>

<p>$9,000 automatic scholarship due to GPA/SAT/ACT
$1000 direct admit CAS
$1000 National merit
Admitted to Hutton Honors so hoping for more there ($1000 to $4000…announced in Feb)
and…DUE TO National Merit (this is one of those “secret finds”)…she’s hopefully in the running for a $12,000 Herbert Presidential scholly (in state students only) which "gives preference to National Merit (also announced in Feb). </p>

<p>All told, it amounts to a full ride PLUS laptop PLUS another $1000 for Jr year Int’l travel. That’s a lot of merit that I know everyone can’t get…but OP would already have a good start toward paying down the price of IU just due to their automatic scholarships. It’s an unbelievable program. It’s DEF not a bad position to be in, and no one is complaining. My D is trying to be excited. But, the grass is always greener, and she’s not attending IU for anything it’s “known” for. And we LOVE New York. But I’ve promised to use some of the money she basically saved by earning her way into IU…on maybe a summer program at NYU if I find I can’t afford to send her there. </p>

<p>So…FINGERS CROSSED!!!</p>

<p>^^that feels correct. The vast, vast majority of students aren’t looking at expensive private schools or are looking at private schools in their regions where the cost is much closer to public tuitions and where those private schools grant enough merit/tuition decrease to bring them closer to the state publics. That situation happens quite often in my neck of the woods where the publics are more expensive and the privates “cost” the parents after Stafford and merit about the same as paying full boat at the publics. Either way, the kids end up with the full Staffords or in some cases full Staffords plus some Perkins for four years. Nothing to back it up, but it feels credible.</p>

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So your original post was not accurate? Do you have a link to this New York Times article? If we are going to provide “average” student debt figures to students and parents on this forum it would probably be a good idea to confirm those estimates and the sources / methodology used to arrive at them.</p>

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<p>One thing they don’t do is wait until they are ready to go to college to ask themselves how they are going to pay for it.</p>

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<p>I have no idea what this means.</p>

<p>Here’s a report from the Project on Student Debt that says that the average 2008 college graduate had $23,200 in student loan debt. The amount of student debt varied widely from state to state, with students from some Midwestern and New England states facing higher debts. </p>

<p>[Project</a> on Student Debt: Home](<a href=“http://www.projectonstudentdebt.org/]Project”>http://www.projectonstudentdebt.org/)</p>