Financial Aid Questions for Out of State students with Parents that filed Bankruptcy

Hello, my son has applied to a few CSU schools and has been accepted to a couple already. Still waiting for a couple more. My question is what are his chances of actually being able to attend these colleges if my husband and I have a Bankruptcy that will not be over until 2016. We have recently just finished completing the FAFSA application as we are hoping to get some help and if not take a loan on whatever is needed to cover the cost. Or have our son take a loan. In googling and looking up stuff it seems like we would be offered a Parent Plus loan if money is an issue, however since it is credit based it looks like we will not be eligible since we have the BK. My son has a GPA of 3.75 unweighted and over 4.25 weighted. I hope am saying them right and has all honors classes and 3 AP classes. He is a hard working student so I would hate to hold him back going to school in CA because of our financial inabilities. But dont want to keep his hopes up either. Do you think there is still a chance we can get covered financially or should we just stay instate? I have no one to co-sign for us either. Are there other alternatives still?

I forgot to say he is going to be a Freshman this coming Fall 2015. Any advise or direction would be greatly appreciated.

Chances of getting full need met are very low as an OOS student. He gets none of the state aid that CA gives which is substantial as compared to what the schools themselves give. OOS prices are high for the Cal schools. No harm giving it a go, but if your son does not have some schools that you know you all can afford and where he can accepted, better start looking for a few to add to the list. I don’t think the CA schools are going to pan out.

Thank you cptopthouse and yes he has been accepted instate so we do have a back up. Am prepared to cover some of the costs of course being OOS am sure not going to get as much as CA residents. Just wondering if others had similar situations and what type of loans are out there or options for people that have a Bankruptcy on them. This 2014 we only made 103K. He has 1830 SAT score.

Your son can borrow $5500 freshman year. If you get denied for PLUS, he can get an additional $4K That’s it for him. You can try some private loans that will make it so that both you and the kid are on the line, on both credit reports and loan still payable if you or the kid dies, and usually those interest rates are at least as high and the terms less flexible than PLUS. You still have to undergo a credit check.

Frankly with the bankruptcy and getting on your feet, you should not be takng out any loans, especially at the 7-8% interest rates that PLUS offers. You can see what pans out from the CA school. There have been times when surprising things happen, but from what I know about the CA system which does not meet need the OOS costs, it is not likely your son will get much aid. How much can you and your son pay from savings and current income towards college? Do you know what your EFC is? Run numbers through EFC estimator if you don’t yet know. That EFC is the LEAST you will have to pay out of pocket before getting penny one from the feds or the schools in terms of financial aid. The only “aid” are those loans and the student rates would be unsubsidized. IF there is any need, even that Direct loan can be applied towards that need rather than the EFC. So how much can you all pay before borrowing?

Generous private schools like LMU, USD and UOP would have been worth a shot with his grades but, i am pretty sure their application windows are closed. You are probably looking at $35k per year to go to a CSU - simply not a reasonable amount. There’s no harm in letting the CA situation play out but, you’ve got a better shot buying some lottery tickets.

I too would discourage you from taking on any debt to fund your son’s college - even if that means a part time job and 2 years at a local community college.

Perhaps he can move here after he graduates.

Good luck

CSUs generally offer nothing but federal aid to out-of-state students. Their list prices are about $30,000 to $35,000 per year for out-of-state students.

UCs will offer approximately in-state levels of aid to out-of-state students, but that leaves the $23,000 additional out-of-state tuition uncovered by financial aid. Their list prices are about $50,000 to $55,000 per year for out-of-state students.

You can check on their net price calculators.

Arizona State U and U of Az often give generous merit awards, even to out-of-state students. There still may be time to apply, if those schools are attractive to him. What state do you live in? I agree that you and your S should avoid debt if at all possible. Given his high grades, it would be reasonable for him to try to go to a U that gives generous merit awards to students with his profile. Attending a CC and then transferring is also a good strategy if there are no merit awards available.

Thank you everyone for all your responses. This really puts things in perspective for me. We live in NV. Will definitely check into the EFC’s and we did apply to one private school in CA so we’ll see how that pans out. HImom thank you for the idea of ASU and UofAz. Just looked into UofA and application still open so will try that route too. And yes he has been accepted to 2 schools instate and was offered some scholarships so we are safe in the regard as far as schools. He just really wants to be in CA too and so we thought we’d give it a shot anyhow. And he has been working part time so he is planning on doing any work study programs or find a job in College as well. Thank you again to all of you, this really helps especially because I didn’t go to College so its been quite complicated but just really looking into helping my son. You mom and dads know how that is.

From a value perspective, it will be tough to beat UNR or UNLV, especially with a partial scholarship. CA is a short drive from either and he can move to CA with a job when he graduates…

I really don’t think your family will be able to afford the California public schools.

I know you don’t want to disappoint your son, but just considering the tuition alone, that’s enough to place you heavily into debt. Then, you need to realize that our Cal States are mostly commuter schools, and personal expenses are tough. So, keep punching that calculator.

If he had applied to the California privates, he would have had more financial options.

Agree that he should consider Arizona schools.