destined for private loans that suck your soul away?

Paying for College
1

<p>Hi, parents, I am really in a bit of a bind. I am really worried because My family income is to high for the government to help w/ subsidized loans. What should I do loan wise? I will need about $7,000 to buy a car and rent a living space as well as feed myself, etc. That amount of the money is not just to buy a car and cost of living, but also for something else that is very important. I know loans do not cover cost of living, in fact my friend told me that most loans are disbursed to the school and not to us. However, without this The thing is, I would like to try anyway possible to get loans where the government does not have to pay the interest. However, the sad part is I cannot pay the loans off until four years later—I am in a six year healthcare pre-dental program. I have searched far and wide and everytime I call the . I go to a small college dedicated to pre-health majors, and will transfer. The financial aid department here right now doesn’t know anything about loans—the counseler isn’t very helpful, and my family contribution is too high. My parents cannot afford at all to help me, because my aunt has cancer and she lives in another country and without my parents supporting her family and her cancer treatment I am worried that she will die. </p>

<p>Am I limited to private loans? The main thing I’m worried about is not being able to pay it off until four years later, as well as the interest rate. Please don’t suggest other ways to cut down my cost of spending or getting my parents to pay---I know this sounds weird but I just really want some advice about financing this. Everytime I talk to loan advisers, all they want to do is sell me a product. Hopefully here I can find some real-time advice. </p>

<p>Thanks so much
Christine</p>

2

<p>First of all, financial aid is based on both your calculated Expected Family Contribution (from the FAFSA) and your Cost of Attendance. The COA includes living costs … that is, room and board. Your school’s financial aid office comes up with a budget for whatever type of student you are (on campus or commuter) and awards financial aid based on the following: COA - EFC - any grants/scholarships - Stafford/Perkins/institutional loans - federal work study = need. If your EFC is so high that you don’t qualify for any need based aid (grants, loans, work study), you are still eligible to borrow up to the amount of your EFC (as long as any scholarships you have + the loans don’t exceed the COA) under the unsubsidized Stafford loan program.</p>

<p>So … if you haven’t borrowed the maximum allowable in the Stafford unsubsidized loan program, do that first. Your parents must fill out the FAFSA, but like I said … you will still be able to borrow, even if your EFC is high. It’s a better deal than private loans. Are you a freshman? You can borrow up to $5500 this year. You can either pay the interest as you go or defer it until graduation (you’ll roll it into the loan & pay it then). This is pretty darn close to your $7000 figure. Can you get a part time job to make the rest? Or can you buy a crummier car, if you need a car to be able to get back & forth to school (I am from an area without public transportation, so I do understand that sometimes a car is necessary)?</p>

<p>If you MUST borrow more money, search the posts in this forum for recommendations. This question has been asked & answered often recently.</p>