<p>So, I really do not know what to do here. Since I am under 24 and a transfer student, my parents claimed me as a dependent. Which means that I get lumped in with them for FAFSA's "Family Income" portion. My family's total EFC was $30,045, parents total income includes rental property.
However, there is no way that they can afford that. Since they are still paying off the rental property loan ($4300 a month), and just last year had to take out a $150K loan to pay for my younger brother's Rehab/therapy school ($6000 a month), he is still attending. Their expenses (loans) exceed their total income.
I asked my potential school (SJSU) if I could obtain a Special Circumstances review of my FAFSA application, they basically said that I was SOL, because of my family's income. Also, that I am only eligible for a $2500 subsidized loan. </p>
<p>In order to attend any university/college you need to be able to fork up the cash, which I currently can't. So what do I do here? It seems like my only option is to somehow acquire an un-subsidized loan from some bank and incur intrest while I attend and then later end up paying almost 25% more than the initial loan amount in interest.... </p>
<p>Any guidance would be greatly appreciated, thanks.</p>
<p>As a freshman, you are eligible to borrow up to $5500 in subsidized and unsubsidized loans. If you were offered $2500 sub, you can borrow another $3000 unsub. If you will be a sophomore, the total is $6500; juniors/seniors are eligible for total loans of $7500. If your parents apply for a PLUS loan and have their credit denied, you would be eligible to borrow another $4000 unsub (or $5000 if junior/senior). That’s only if they are denied, though.</p>
<p>You might be able to convince the school to make some adjustments for the rehab/therapy school, but I doubt it would get you any more aid … I say this because the EFC is high enough that the adjustments probably wouldn’t lower your EFC enough to make you eligible for institutional aid (and certainly not for Pell). Most middle-income families — and your family is higher income — find that they aren’t eligible for much other than loans. An adjustment might allow you to qualify for federal work study, so it wouldn’t hurt to fill out a special circumstances request form.</p>
<p>But to be honest, it sounds like maybe this is not an affordable school for you, even if they were to make adjustments. Can you live at home and commute to a school? That would lower your costs.</p>
<p>Are you a sophomore? If so, your total Direct loan is $6500. If a junior it is $7500. Your need defines how much is subsidized.</p>
<p>Even if your parents had NOT claimed you on their taxes, you would STILL be dependent for financial aid purposes. Their tax filing status has nothing to do with being independent for financial aid purposes. You are NOT independent for financial aid purposes.</p>
<p>And even if you were independent, and had an EFC of $0, the most additional aid you are guaranteed to receive is the $5600 Pell Grant. That added to the direct Loan isn’t enough to cover tuition, room, board and fees.</p>
<p>Your parents own a rental property. Colleges do not give need based aid to enable families to own secondary real estate, which is why the equity in this is considered an asset. </p>
<p>Now…special circumstances considerations. These are done on a case by case situation. Colleges do not have to do special circumstances considerations at all. And if they do, there is no guarantee yours will have a positive financial aid outcome.</p>
<p>Re: loan interest…I don’t know of any legitimate loan with a 25% interest rate.</p>
<p>You can do what many other students do. Live at home. Commute to a community college and finish your general education requirements. Then commute to a four year public university to complete your bachelors degree. You may have to attend college part time, and work full time. Try to remember your goal! </p>
<p>Commuting wouldn’t really be viable, since the closest college that has a decent engineering program is SJSU and that is a 2.5 hour commute away, one way. I already finished all my prereqs, as I am a junior transfer. </p>
<p>Regarding the 25%, it wasn’t interest but, rather how much more overall I would have to pay, i.e over a period of 5 years after graduation. </p>
<p>Is there an ABET accredited engineering program within commuting distance of your home? </p>
<p>Or do you have a relative who lives near an ABET accredited engineering program who you could live with? </p>
<p>Your parents already have a LOT of loan debt. You may have to consider working for a year or two to save money for your next year or two if college. </p>
<p>I know it sounds difficult, but you are not the only student whose parents cannot afford to pay college bills, and who have other expenses. </p>
<p>SRJ…you will likely need a qualified cosigner for this loan you plan to take out. Who will that cosigner be? Your parents already have debt that far exceeds their income (per your report). Are you sure they will be able to qualify as cosigners on an additional loan? </p>
<p>@Mik19 Somewhere in the 90K range, but they have rental property, which they saved up their whole lives to buy. The rental property’s value after the deducted loan amount of $400K is somewhere in the $200K range. </p>
<p>SRJ. Need based aid is not provided to students so that their families can own rental properties. With a $90,000 income, your FAFSA EFC would be in the $25,000-$30,000 a year range. </p>
<p>I’m not wishing to sound harsh, but most rental property owners hope that the rents from the properties will pay the bulk of the costs of owning these properties. Again…the federal government, and the schools are not going to give you need based aid to support your family rental properties. It is great that they saved to buy these, and really, they will bode well in the future, perhaps. But don’t expect a college to ignore them!!</p>
<p>Rental property is a tough one. Even Harvard would not budge from that one, so I don’t see what you can do to get around this.</p>
<p>You have two years to go. Where can you get the degree the cheapest? In your case, you can get about $12500 from Direct Loan (junior standing) with parental denial towards your expenses in loans which is NOT enough to pay for going away to school. Did you borrow this year? If not you can get your $6500plus denial still for this current school year, and stash it towards next year’s costs. That gives you nearly enough, and if your parents can kick in a little and you can work this summer, you can eke by Next year will be another struggle and search.</p>
<p>Honestly, the best way to g is to find a commuter state school to get that degree Your job and earnings prospects will be good, and as someone who is half way there, congratulations, and I think you can make this work. This is something I wish I could change in the system. For YOU, I’d give the full amount of money to finish up without a blink of my eye. if it were up to me.</p>
<p>Back in an earlier post, Kelsmom said that the school might be able to make an adjustment because of your brother’s school costs. Have you given the schools that information? You would have to demonstrate the necessity for this school, and show that you were not reimbursed by other means (insurance, scholarships, etc). It’s worth trying. You would also have to show receipts for the costs to attend.</p>
<p>The schools are much more likely to make an adjustment for a very necessary therapeutic school than for the rental property.</p>
<p>Is that $150k loan for your brother’s school against the rental or your primary home? It should be against your rental to have the best EFC result.</p>
<p>In any case, I will need to take out a loan, no way in avoiding it. Also looking to join the military, just for the sake of paying off my student loans. Just talked to a recruiter apparently the military is willing to pay up to $65,000 in student loans. So there is that…</p>