Can you sell the property?
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Take a deep breath and reach out to the school . It is very likely they want your daughter to finish what she started , as do you. You , and she, may need to compromise with the school , and take out some loans if necessary, work more, liquidate something, etc. if your finances have changed. Hopefully, it’s all just a mistake, or any increase will not end up being so drastic. She is your only child. Don’t let this come between you. Good luck !
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A humanities major at a tippy top university is generally going to have more opportunities out of the gate than one at a less prestigious university. She already has a lucrative consulting internship this summer.
People on CC do tend to be married to the idea that the college doesn’t matter, only the student’s effort does. Even if I totally agreed with that sentiment, this situation is more complex than a high school senior deciding between full ride honors at UMass and full pay at Harvard.
If she transfers, she will have a lot of opportunity costs: lost income from entering the work force later, potentially spending more time in college because it’s unlikely any school will let her graduate in 3 semesters, lost connections/recommendations/academic relationships.
She is almost 3/4 done with her degree and considering a major pivot…it’s understandable that she doesn’t want to take on debt, but it’s also understandable that her parents want her to appreciate the investment that has already been by them and by her.
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I’m a “plan for the worst” kind of person; unless I missed something, the only way she can cover the $82.5k (less the small federal loan she can take herself) is if you and your husband take out loans. Have you spoken to your bank or credit union to see what they can offer?
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Exactly !!!
We will not take out loans ourselves. We expect DD to take out the rest on private loans. DH and I are 51 and only have $300k saved for retirement.
No. It is our primary residence. Our family is currently living in a crappy rental in another state for DH’s job.
You will need to co-sign these loans. She won’t be able to get them in her name only. Will you co-sign?
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Yes. More than happy to co-sign for DD. I have full faith that she’ll have no problem paying off the $90k.
You do realize that if she doesn’t pay…you will be responsible for paying. How will you guarantee that a student who won’t even contribute toward college costs from her summer internship will pay loans you cosign?
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Because they’re in her name. And if she doesn’t pay them, they’ll garnish her wages and her credit score will probably dip.
Is the assumption that the investment made is only valuable if the name of a T5 is on the degree, or is the assumption that a T5 education for 5 semesters (if I calculated correctly) is superior and has conferred superior skills and networking opportunities to the student regardless of the institution on the final BA degree? I think this distinction matters in the conversation between student and parents.
And YOUR credit score will dip. If you cosign a loan, it’s yours, too.
Something about this thread seems off to me.
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Actually…in a cosigned loan, that isn’t true. Both signers are responsible for paying. If she doesn’t pay, you will be on the hook for paying.
And if neither of you pay…both of you will be sent to a collection agency…with subsequent credit hits.
I think you need to learn a lot more about this. You have lots of inaccurate information. This is one. That “20%” for student income is another.
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I know she will take her responsibility with her credit score very seriously.
I didn’t know that! Thanks for letting me know! I thought they just garnished her wages.
That’s what I was getting at; legally they’re your loans.
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The lending institution really doesn’t care which cosigner pays…they just expect to be PAID.
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From Equifax.com: " Cosigning for someone means you’re taking responsibility for the loan, lease or similar contract if the original borrower is unable to pay as agreed . Whatever you cosign will show up on your credit report as if the loan is yours, which, depending on your credit history, may impact your credit scores."
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Thanks for letting me know! That definitely changes things. In the meantime, I won’t be checking this thread until July, when hopefully Financial Aid accepts the appeal.
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