EFC Went Up $50K for College Senior!

This is so horrifically offensive and rude of you to say.

I would also like to point out that you are the only one on this thread disagreeing with me.

Well, she might be like me and need to see the numbers on paper. I’d include average starting salary for a management consultant ( realistic not a stretch position). Make a list of what things would likely cost with that job ( rent, food etc and don’t forget to take out likely taxes). Idea is to get a solid estimate but not exact.

I would include the standard payback based on whatever they are charging for the loans she’d take. An aggressive schedule (x2) and a lump sum added ( even if it’s only $500 a year) so she can see how focusing on the payments will help pay it down quick. She’ll see it’s doable.

My sister had about 25-35K in loans in the 1980’s. That was a lot. An entire years salary in a good field. She was really focused on paying it down. I think the loans made her work harder and smarter in the early years. She went on to give her Alma Mater scholarships for women. She’s given a lot over the years, and has also paid in full for her kids college with her own income. So it was a good investment.

Is there something deeper holding her back from the 50K? Money is complex. She might be attached to the idea that she was going to graduate with no debt. Or she wants to buy a house by 25. Can be a number of things she might not have said. I think it’s something.

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If the school counts home equity, it doesn’t matter that they are no loans. If you have cash flow issues because you have assets that you don’t want to liquidate, you may still have to take loans at a “no loan” school.

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Praying for you that it’s a mistake!

I wouldn’t worry too much about what your D is saying today. If you just heard yesterday, you are all probably still in shock mode.

Worse comes to worse, do the math with your D, show her the loan amount is doable, help as much as you can, and stay as calm as possible.

FWIW, I wouldn’t talk about it at all with your D until you’ve talked to the financial aid office. I’d move forward under the assumption that there was an error.

Sending good thoughts your way!

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Not sure what is going on in this family, but it isn’t clear that the daughter’s reaction is disgusting.

There are different ideas of what costs are sunk or not sunk. For sunk costs, what you have spent already has no value today and you don’t need to make current plans based on them. Daughter seems to be thinking this way. I think they are not sunk and that the plans for the final year should incorporate what has been invested already.

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My oldest had about $80,000 in loans, she’s turning 26 and has almost paid them off. My 24 year old had the same, has a couple years to go. My 21 year old is paying for her DPT program with loans, 6 figures. Unfortunately we aren’t eligible for any FA. Fortunately they have solid majors. Only one of my 19 year olds is away, add $80,000 to her tab. They are free to live at home paying it off.

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I’m confused by your comment. There are many people who are desperate for that kind of money and who might be shocked that some view it as measly. Sorry if you are offended. I would not presume that any student is happy to pay that off, regardless of the college they attend.

You posted asking for advice. I suggested your child consider a gap year to earn some money to pay her fees. That’s a sensible thing to do if she has to take out loans.

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Can you and DH take out a $50k loan, and are you in a financial position to pay it back?

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Perhaps she is offended by what appears to be a “bait and switch” by the college with respect to its financial aid. Especially when the greatly increased price occurs in senior year, when she has fewer transfer options.

Presumably, if she does finish with $50,000 debt, she will probably have something to say about why she will not be donating when the college calls her to solicit donations.

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So sorry this has been dropped in your lap!

Definitely make an appointment with the FA office. It’s the quickest way to get a handle on the situation. I second not discussing this with your D until you have more facts in hand. She’s understandably upset at the unexpected turn of events. However, if it turns out that she’ll need loans to finish her final year I strongly recommend she or you consider taking them out since transferring or waiting to finish school will delay both her education and future employment neither of which benefits her in the long term.

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DH and I are discussing the possibility, but it’s looking unlikely. We are 51 and still have $400k left on our mortgage and only have $300k saved up for retirement.

Does this mean you haven’t double checked your Profile and FAFSA for 2022-2023? If that is what you meant, please print these out…and go line by line. It’s possible you added a zero, or misplaced a decimal point someplace…or entered something in the wrong place.

Please check your forms!

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Why?

Does the school count this towards the total owed by the student/parent?

I think it’s because she feels like the $15k won’t make a dent on the $90k in loans she has to get to finish her BA.

She has three semesters left (not two) because she needs to take an extra semester to finish her degree requirements (really complicated, feel free to DM me about that). We can only afford to pay $25k/year.

$80000-$25,000=$55,000

$55,000/2= $27,500

$27,500 times 3 (for remaining three semesters)= $82,500

  • the $8k DD currently has in subsidized FAFSA loans

=$90k in total debt for her BA

//////////////

I think $90K of debt for a BA from a T5 school is worth it. DD disagrees, and DH and I are trying to convince her otherwise.

They count 20% of it IIRC

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The school doesn’t care who pays the college bill. If this student is earning $15,000, and then takes the $7500 senior Direct loan amount, she will have $22,500 which is almost half of what she needs to pay the school…assuming that this IS the final bill.

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IIRC I said earlier that DD has no student loans. I stand corrected — DD reminded me today that we made her take out $8k in subsidized FAFSA loans because we can’t meet our $35k/year EFC (can only afford $25k/year).

She also has three semesters left, not two, because she took a leave of absence during COVID and because her degree requirements are a bit complicated.

I’m not sure what you mean by this!

If the $15,000 is sitting as an asset, it will be counted at 20% of its value when the EFC is computed. NOT 100%…20%.

I don’t think it’s unreasonable for some of these summer earnings to be used towards college. I really don’t. Many students who do internships or coops and are paid use the money to offset college costs.

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@BelknapPoint could you comment. This student is earning $15,000 this summer in an internship. I have no idea what this parent means that “they count 20% of it”