<p>Hello. I am a non-traditional student. My parents recently told me that they would not help me with my education past community college (which I have been funding myself). Recently, though, I talked to them about the Direct PLUS loan. They said they would be willing to provide their financial information on my FAFSA as long as I pay them back the money from the loan. I told them that I would be able to get significantly more financial aid IF they provided their information and that the Direct PLUS loan would be paid off by me, once I complete my Bachelor's in Chemical Engineering and land a steady job. My question is: how does the Direct PLUS loan work, exactly?</p>
<p>How much do you plan to take in loans? The Plus loans are loans in your parent name only. It makes less sense for them to take those loans, as they are totally PARENT loans than to cosign…when they will only be on the hook if you don’t pay.</p>
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I told them that I would be able to get significantly more financial aid IF they provided their information </p>
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<p>I don’t think that’s true at all. I think you’d get LESS aid. </p>
<p>WHY would you think that? Are they LOW income? If not, that would not be true.</p>
<p>You’ll be 24 and independent for the next school year. If you don’t use your parents’ info, then you’ll probably get awarded a Pell Grant. But, with their info, you’ll probably get ZERO aid. </p>
<p>You also can borrow more w/o their info. </p>
<p>As for having them apply for Plus, that would be different. If that is done the same way as it’s done for dependent students…the parents apply online for a Plus Loan. Since it doesn’t sound like your parents would be making interest payments while you’re in college, the debt will grow while you’re in school.</p>
<p>I think you’re naive about how you’ll be able to pay off a lot of debt. You may have a strong salary as a newish ChemE grad, but as a single person, you’ll also be paying a LOT of taxes. Plus, you’ll have your living expenses…rent, utilities, car, insurance, food, cell phone, internet, cable, etc. </p>
<p>How much are you thinking of borrowing each year?</p>
<p>What schools are you applying to?</p>
<p>What state are you in? </p>
<p>I think that, in the long run, you need to find some options that require minimal borrowing. </p>
<p>I will be applying to:</p>
<p>UC- Berkeley
Rutgers
University of Illinois</p>
<p>My home state is NJ.</p>
<p>Applying to UCB makes no sense! The minimum cost will be 23k oos fee + your student contribution of about 8k + your family EFC. You will not be given aid for those amounts. </p>
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<p>UC- Berkeley
Rutgers
University of Illinois</p>
<p>My home state is NJ.
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<p>Hmmm…if you’re smart enough to become a Chem Eng’g, then you’re smart enough to see that UIUC and UCB would be…uh…(harshness alert!!!) crazy choices. (oh my!)</p>
<p>Seriously. Sorry for the harshness, but your thinking is incredibly naive. UCB charges EFC + $23k for OOS students. So, if you were to use your parents’ info for FAFSA, and they’re not low income, you’d likely be charged FULL FREIGHT!!! lol </p>
<p>And even if you were to use YOUR info and get a 0 EFC, then you’d have full $12k Direct loans…PLUS $23k in Plus loans per year…$70k in loans total …CRAY CRAY to the MAX!!!</p>
<p>And, UIUC gives no aid to OOS transfers…so you’d be borrowing all costs…about $80k for two years…more CRAY CRAY!!!</p>
<p>If you have the thinking skills to become an engineer, please apply them NOW.</p>
<p>As a resident of NJ, and with a 0 EFC as an independent, you probably would get state aid in addition to a $5700 Pell grant. You’d probably graduate with about $20k in loans…maybe $25k.</p>
<p>Do you realize that an employer who hires a Rutgers ChemE graduate is going to get pay that Rutgers grad the same as the Cal or UIUC grad? The UIUC grad and the Cal grad will NOT have higher salaries.</p>
<p>Do you realize that if you’d take on all that crazy debt you’ll become annoyed when you find out that your fellow new-hires are being paid the same even though they went to their inexpensive local schools…and they’re not burdened with debt and they’re buying homes and moving on with their adult lives while you’re close to 30 and drowning in debt???</p>
<p>Sorry for the harshness, particularly on Christmas, but it’s a gift to you to wake you up!!</p>
<p><em>sigh</em> If only there was a way I could go to UCB or UIUC without accumulating so much debt…</p>
<p>You have to deal with the realities of your situation. Not all dreams can happen…they’re just fun, daydreams. Make the most of YOUR BEST SITUATION. Rutgers is an excellent school!</p>
<p>Rutgers, UIUC and Cal are all big public flagships…there really isn’t much difference, if there is a difference. And, there certainly is NOT a measurable difference to justify accumulating $80k in debt! That is no dream! That is worse than a nightmare! You can’t just wake up and find the debt gone.</p>
<p>Besides…you’d only be going to whatever college for TWO years…it will be over before you know it. No reason to accumulate a bunch of debt for two short years when you have an excellent school in your midst.</p>
<p>College really isn’t “the dream”…your future life, your career, any future family, your future home, the good things you’ll do in life…THAT is the dream. </p>