<p>That’s very good for them I got half tuition somewhere but that isn’t where I want to go.* I suppose I will just drown in loans**. *</p>
<p>That is a very bad idea. </p>
<p>Let’s see…you’d rather go to a college for a few years and take out huge loans which will cause you to have a miserable adult life for MANY YEARS???</p>
<p>Are you aware that YOU cannot borrow much? For you to borrow more than the limits of federal loans, your parents would have to co-sign those loans. Will your parents do that? Most parents will NOT. If your parents won’t, then you need another plan.</p>
<p>I don’t understand why people say that they are penalized for saving. We saved for our daughters’ education, and for our retirement. I can’t believe that the FAFSA formula only expects us to contribute 5.6% of the college savings per year.</p>
<p>How is that a penalty? This is money that is not part of our retirement, and that we planned to use for our children’s college.</p>
<p>If we use all our college savings, our EFC changes very little, because it is based mostly on income.</p>
<p>Well put, 50/40. I think that “penalized for saving” notion is just part of the frustration that comes from the daunting expense of college.</p>
<p>Likewise, when people are dismayed that their EFC is higher than they think it should be. No doubt those EFCs can get really high, but the “benefits” of having a low EFC are SO limited – the amount of available federal grant aid is a drop in the bucket of college costs.</p>
<p>I think people forget that just because someone has a low EFC, that doesn’t mean it’s all the student and their family as to come up with in most cases! On top of the huge, huge amount of debt that’s likely part of the picture too.</p>
<p>those with a good amount of assets often have large incomes, so when they see their high EFC they wrongly think that it’s because of their savings.</p>
<p>Do not assume that any scholarships awarded do not change your EFC. I know at many schools, the thousand here, the $500 there, all go to the school and don’t really help you. </p>
<p>We were surprised when Colgate said that any of those scholarships my DD did get would help lower our EFC. My cousin’s son went to Hamilton and the scholarships he was awarded, didn’t help them at all.</p>
<p>My parents and I are going to do the AAA loan. It has a fixed intrest rate of 7.75% and you don’t have to pay a cent back until after graduation. The loan will have to be cosigned by my parents but they agreed to it. The loan is much like the parent plus loan but it has much better perks. Such as not having to pay it back until graduation.</p>
<p>I think some are missing the point. Yes, those with high EFC can send their kid to a nice state school. The actual point is that they are cut out of the private school of their choice in many cases. I’ll have to re-state for those of you that will jump on me…that I’m grateful to be in the position we’re in. BUT, many of the best privates are therefore limited to the very high income…or very low income students. I didn’t say ALL privates…I said many of the best. That part is clear. Now here comes the really politically incorrect statement. If i’m low income, AND minority, I’m not only going to get more loan money, and small fed grants thru FAFSA, I’m also going to get money directly from the colleges. I’ll likely get a full ride…or close to it, depending upon grades. So I get it that life isn’t fair, and I will of course suck it up…etc. But white middle class D who’s getting 4+ GPA, in IB diploma trak, will not repeat not, have the same opportunity to attend many of the best privates versus the minority, low income candidate with lower grades/test scores etc. Sorry…it’s fact. If you don’t believe it, read the book The Gatekeepers. It’s there in bold relief. I’m not saying its fair or unfair. You can all debate what the minority low income candidate had to overcome to get the grades to be considered at all. That’s not for me to decide.</p>
<p>It’s a myth that low income kids are able to attend expensive private schools of their choice on the meager federal aid. Even with institutional aid the vast majority can’t handle being gapped even a few thousand dollars without an unwise amount of loans. There may be a small percentage of high performing low income kids doing this with big merit aid. But it’s not federal aid that’s doing it. Most low income kids are going to a local CC or 4 year and still struggling to do it.</p>
<p>It’s not other taxpayer’s jobs to allow kids to live away at the school of their dreams.</p>
<p>Reelman, are you sure the merit scholarship didn’t reduce the amount of loans?</p>
<p>Parent Plus loans can also be deferred until after the student graduates. They have a slightly higher interest rate, but also have a few perks…such as loan forgiveness in the event that either the parent or student dies.</p>
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<p>Outside scholarships do not change your EFC…I think that’s what you meant. They reduce need, which is COA - EFC. The less need you have, the less institutional aid colleges have to give. Once you have no remaining need, typically only merit aid, Pell, and loans can be applied to EFC. Are you close to being full-pay at Colgate?</p>
<p>And, the best part of Parent Plus for a student is that the PARENTS are responsible for paying them back…not the new grad who won’t be earning much money!!</p>
<p>kramer…how much will you be earning when you graduate?</p>
<p>Mitch, no one is missing the point of your repeated posts which seem to all say the same thing…I think most of us have been through this with multiple kids over a period of years so we “get it” already. You’re obviously unhappy that you have a high EFC and are not sure you’re able to afford your kid’s “dream school”. Well, that’s exactly the position that many, many families from ALL walks of life are in. We simply don’t buy into the “only one school will fit” or “dream school” mentality. Your D is obviously a bright young woman and has many choices…YOU are in control of how much you’re willing to help her with financing her education and SHE can make her decision based on that. No one will hunt you down for not allowing your child to attend her #1 school, and paying for college is not mandatory.</p>
<p>Very few low-income kids have the opportunity to secure a full ride. Most live at home and attend their local public colleges/CCs. Most work, starting in HS, because they have to. I, for one, would not begrudge them a dime if they’re talented and hard-working enough to secure a spot at a school that guarantees to meet need and you shouldn’t either. That aid is coming from the college’s endowments and being used as the donors intended.</p>
<p>That aid is coming from the college’s endowments and being used as the donors intended. </p>
<p>Wow, thats a leap. I dont think you can possibly know exactly what donors intended. I think there is a lot of frustation. All you can say is it being used as Trustees intend. I find it outrageous that schools are going with no loan policy. At a minimum, kids should be expected to have Stafford loan.</p>
<p>I won’t be borrowing insane amounts of money. I will be borrowing around 10-15 grand a year, that is my estimation. I really can’t say I haven’t gotten my FAFSA results back yet and I don’t know if I will get better scholarships in the future.</p>
<p>Not a leap at all…my (private) alma mater has a variety of giving options and places a big priority on making a college education accessible to low income and minority students. Those who choose to direct their contributions to other funds, such as capital improvements, library acquistions, etc. are free to do so. From what I’ve received from my kids’ (public) schools, it seems that they offer similar choices to their donors…although I don’t donate to anything other than the Parent’s Clubs there!</p>
<p>Very few schools have no loan policies…even those that guarantee to meet 100% of need usually have a student contribution of several thousand dollars per year. Many more schools do meet full need, but generally include both Stafford and Perkins loans and work study for low EFC kids.</p>
<p>I won’t be borrowing insane amounts of money. I will be borrowing around 10-15 grand a year, that is my estimation. I really can’t say I haven’t gotten my FAFSA results back yet and I don’t know if I will get better scholarships in the future.</p>
<p>Actually, borrowing $15k per year IS an insane amount. That’s $60k in debt. That’s way too much for an undergrad. </p>
<p>How much do you think you’ll be earning when you graduate?</p>
<p>(and…scholarships when you’re in college, are hard to get and often for small amounts…you can’t count on those.)</p>
<p>So sk8rmom, based upon a FEW schools’ current treatment, you conclude that schools in general use money based upon donor’s wishes. Including donors long dead. And you don’t think that is a leap? OK. Not school related per se, but my guess is the original Fords would be aghast at some of the things the Ford Foundation supports. Not that I think that is a bad thing. </p>
<p>And you refute my argueing about “no-loan” policies by saying that is not common. I agree it is not common, but I don’t think it should exist at all. If Stafford loans amounts were required for all, more aid could be given.</p>
<p>I understand you are mentioning that Mitch has been posting on this more than once. I dont think that makes his points less valid.</p>