Federal Aid not enough for college cost

Paying for College
1

<p>Should I take out private loans to attend college? Or skip this semester and find a second job to cover tuition?
Financial Aid Award List:
Cost of Attendance
Book Expenses<br>
$719.00
Boarding Expenses<br>
$2,673.00
Direct Loan Fee
$70.00
Miscellaneous University Fees<br>
$18.00
Miscellaneous Living Expenses<br>
$2,065.00
Rooming Expenses<br>
$3,240.00
Transportation Costs<br>
$1,056.00
Tuition and Fees<br>
$3,101.00
Total:<br>
$12,942.00</p>

<p>Financial Aid Award
Fund Status<br>
Second Semester 2012-13</p>

<p>Total</p>

<p>Fdrl Direct Subsidized Loan Accepted<br>
$2,500.00
$2,500.00
Fdrl Direct Unsubsidized Loan Offered
$6,000.00
$6,000.00
Federal Pell Grant Accepted<br>
$900.00
$900.00
Total<br>
$9,400.00
$9,400.00</p>

2

<p>Working is ALWAYS the better option if you can do it. You’re already looking at significant debt - don’t add to it!</p>

3

<p>@dogersmom I do work but my hours got cut from 30 to 10 hours and I just started to make car payments and my medical bills are in collections which force me to make payments. I feel like the best choice is to possibly not attend college if I’m in debt.</p>

4

<p>Here is a more up to date version of my award list:</p>

<p>Disbursement Notice
Our records indicate your primary campus is either Miami University Hamilton or Miami University Middletown. Your financial aid for Fall Semester 2013-14 will disburse no earlier than September 14, 2013. For Spring Semester 2013-14, your financial aid will disburse no earlier than February 14, 2014.</p>

<p>Cost of Attendance
Book Expenses<br>
$1,250.00
Boarding Expenses<br>
$5,572.00
Direct Loan Fee
$70.00
Miscellaneous University Fees<br>
$36.00
Miscellaneous Living Expenses<br>
$2,820.00
Rooming Expenses<br>
$5,620.00
Transportation Costs<br>
$2,030.00
Tuition and Fees<br>
$6,326.00
Total:<br>
$23,724.00</p>

<p>Cumulative Loan Information as of
20-FEB-2013
Loan Type<br>
Amount</p>

<p>Subsidized<br>
$2,500.00</p>

<p>Financial Aid Award
Fund Status<br>
First Semester 2013-2014</p>

<p>Second Semester 2013-14</p>

<p>Total</p>

<p>Fdrl Direct Subsidized Loan Offered
$1,750.00
$1,750.00
$3,500.00
Fdrl Direct Unsubsidized Loan Offered
$3,000.00
$3,000.00
$6,000.00
Federal Pell Grant Accepted<br>
$1,348.00
$1,347.00
$2,695.00
Total<br>
$6,098.00
$6,097.00
$12,195.00</p>

5

<p>What makes you think the Federal government is supposed to pay for your education?</p>

6

<p>^^</p>

<p>Or should pay for your room and board? </p>

<p>Anyway, since you’re a Pell student, the idea of taking out private loans is too risky. Your family can’t likely afford or want to cosign them. </p>

<p>Start at a CC, go for two years. Work and save money, and then transfer for the last two years.</p>

7

<p>

Yes you do not want to incur more debt in order to attend school.</p>

8

<p>@mom2collegekids
I only paying the; tuition and fees, university fees, loan fees, and book expenses.</p>

9

<p>Actually those ARE the local CCs. </p>

<p>OP, you need to commute to one of them from home. Save 1/2 the cost for room and board.</p>

<p>XPosted with the OP.</p>

<p>Yes, you may need another job or to take classes individually rather than a semester at a time.</p>

10

<p>I’m a bit confused here. A lot of info, too much even, yet not enough.</p>

<p>What is your designated year–freshman, sophomore, junior, senior? How many credits have you already accumulated? When do you think you can realistically graduate (month and year)? How much have you borrowed already? How much PELL have you taken already? Have your dropped classes or had other issues? Are you a traditional student? (directly out of high school betw ages of 18-22). Where are you living right now, with parents, other family, and are going to move on campus for college? </p>

<p>I ask all of this to get some idea where you are in this process. The bottom line is that you have a gap that needs to be paid for the ONE semester where the cost is $12, 942, and the funds given to you come to $9400. That’s more than $3500 you have to pay for this semester, whenever it should begin. And most of the funds given to you are loans,$8500 for ONE SEMESTER, with $6000 UNSUBSIDIZED which means that the loan amounts are ticking away at close to 7% interest the instant the funds are disbursed. And you are thinking about BORROWING another $3500??? Where are you thinking of getting that money? Unless there is some unusual circumstance here, you will likely need a cosigner with a credit history. </p>

<p>Now that might not be so bad, depending on where you are in this whole process, and if the future looked a bit more promising, but your next year awards is not covering your costs either.</p>

<p>THe next year appears to be a freshman level award for an independent student or a dependent student whose parent was declined for PELL. That means $9500 in loans for that year with only $3500 subsidized. You also have a gap of over $11K. How are you intending to pay for this? With MORE loans?? IF you can get someone with credit to hamstring him/herself with you for that amount. That’s a lot of money and over a lot of time which means the danged amount will nearly double at the usurious interest rates charged.</p>

<p>The federal loans are intended for those who stay at home with parents picking up the cost for three squares (or at least some part of it) and the cot, and commute to a state school. Maybe work part time for some pocket money, transportation and other expenses. It’s not intended to support a person full time. Yes, some can do it with some money from the school, full or close to it in PELL money, some State money from those states that will kick in some money, and the loans and the part time job, but that’s at inexpensive state schools. This college isn’t giving you a dime. It’s just got its mouth latched on the federal teat and taking the cream of the money, leaving you to scramble for the rest.</p>

<p>Look for a local state school and see what kind of aid you can, and with maybe a fraction of those loan amounts, a little from your job, if you live at home, you can make this work without getting into financial trouble. I don’t see how this is worth the cost.</p>

11

<p>@cptofthehouse
This is a community college or regional college depending on how you look at it. Im a freshmen non traditional student second semseter. My gpa is a solid 3.4. Im 23 live with a family friend. I intending to graduate in 2017…I have 2500 in subsidized loans all ready. My pell grant last semster is $700.00. My Major is Organizational Leadership (BA), Marketing Management(AA), with a minor in Spanish. The Marketing degree easily translates into an organizational leadership degree.I do have a job but it’s 15-24 hours a week so in the summer time i need to find a second job.(My current job no longer has full time workers).This is the award for my 2nd and 3rd semsester.</p>

12

<p>I do intend on taking the maximum amount of credit hours my 2nd year in college while also working 30 hours a week.</p>

13

<p>Brooklynredhawk, when you fill out your FAFSA next year, make sure you don’t have a red cent in your accounts, other than proceeds from financial aid. 20 cents of every dollar goes towards your EFC. 50% of your earnings over $6K also does. </p>

<p>If you continue to live with a family friend, the room,board, and other costs that are discretionary, will be as the school estimates, as they are averages. What you need to do is to come up with the tuition for the school each term. I suggest looking for the least expensive way to get books and pull that budgeting belt waaay tight. It’s going to be a tough. go. You can also ask if you are eligible for any work study or other jobs at the college itself. Good luck,</p>

14

<p>@cptofthehouse
how do you know 20 cents of every dollar goes towards E.F.C. If I have known that ahead of time I would of never deposited money in my checking account.</p>

<p>I am looking at savings on textbooks through half.com. I will check with my financial aid adviser and see if I’m eligible for work study</p>

15

<p>Brooklyn…it doesn’t matter if the money is in your checking account or stuffing your mattress. If you HAVE the money the day you file your FAFSA, it will count as a student asset which is assessed at 20%.</p>

16

<p>

See <a href=“https://studentaid.ed.gov/sites/default/files/2012-13-efc-forumula.pdf[/url]”>https://studentaid.ed.gov/sites/default/files/2012-13-efc-forumula.pdf&lt;/a&gt;&lt;/p&gt;

<p>Also see [Part</a> 2: Answers on the Fafsa, the Free Application for Federal Student Aid - NYTimes.com](<a href=“http://thechoice.blogs.nytimes.com/2012/01/10/kantrowitz-part-two/]Part”>Part 2: Answers on the Fafsa, the Free Application for Federal Student Aid - The New York Times)

</p>

17

<p>Brooklyn, I know because I know the formula. For an independent student, it’s really simple. 20% of assets on the day of filing plus 50% of earnings over $6K. Work study doesn’t count.</p>

<p>Thumper is right that you are supposed to include money in your wallet, under your mattress. You can’t lawfully “give it to a friend or shoebox” to hold, and FAFSA is a federal form. But you can pay off your obligations and make sure the only money in the account is easily verified as fin aid proceeds which are exempt from the count. Pay day is a terrible day to fill out FAFSA. So is any day when you have money sitting there that is earmarked for something, especially something big. And you can’t go back and change it,nor can you caveat the amounts as being so earmarked even if they are. It’s a snapshot of that day, and unless you hit the wrong keys in entering the amount, you are done, once you report it. </p>

<p>But, yes, 20% of your assets, Every Friggin’ Cent goes directly to EFC. Now you know what it stands for.</p>

18

<p>@thumper1
How does the financial aid department at a college or university have knowlege on the exact amount of money in a checking account or underneath a mattress. This seems like there is a loop hole where you just take your liquid assets during the summer time and decrease it by next to nothing. That way when the Financial aid Department calculates your E.F.C. it’s near zero. Then there’s more federal grant money. I know this sounds arbitrary and possibly wrong but based on conspicuous assumption if a college student gets married just for the low E.F.C. and both “couples” have extremely low liquid assets then they would get the maximum Pell Grant and more subsidized and unsubsidized loans.</p>

<p>Please correct me if I’m wrong and I am not directing this at you.</p>

19

<p>I don’t advocate my previous statement, but it’s seems to encouraging to financial aid departments to implement a FAFSA deadline near retirement.</p>

20

<p>Brooklyn, one can always lie, cheat and steal. And get away with it most of the time. You can even murder someone for money. It’s a matter of where you want to draw the line. </p>

<p>Here’s the thing: You can get selected for verification and depending on how intense your verification is going to be, right up to an outright audit, you can get caught. Considering you did not know the very simple 20%/50% rule, i would have to say you are not very astute in this area, and if you mess around with those who are, the likelihood of getting caught is very high and the consequences not worth it. It’s the Feds you are talking about, and though very rare, yes, you can do time for fraud in this area. </p>

<p>There a lot of legal loopholes, yes, and you can take them. You can also go the illegal way, and take the chance that you don’t get caught, but unless you are way “smarter than the average bear”, which I don’t see, from your posts, you can end up “prime catch”.</p>