I’m transferring out of a CC to a four year private institution in the fall. I just got my financial aid package, and will obviously be going over it with my parents, but I have some questions.
The cost of the school without room&board is ~$36,800 for the following year. I’m living at home, which is why I included that number. With grants, work-study, and a scholarship I received $14,583. This means I’ll have roughly $21k leftover. I was offered an unsubsidized loan of $4500, and an unsubsidized loan of $2,000. I was thinking of taking both of those on right off the bat. I know my parents can contribute at least half, or possibly more, of the $16k or so that would be left after I take out the loans. My first question is how much would my package different next year? Second, what other types of loans would I look at? They did offer $23k with the PLUS loan, but taking that seems insane. Also, I know taking out the least amount of loans is ideal and if my financial aid would be similar next year then I’d graduate with about $28k in debt. I am going into a field where I should be starting out with around $50k, but obviously it’s not something to count on. Any advice would be appreciated!
I think you meant a subsidized loan of $4500 and unsubbed of $2000. If your parents can pay the $16k per year, they should do that and not take the Plus loan.
If you become a junior next year, the only change should be the subsidized loan amount would go to $5500. The rest of your package usually remains the same if your situation doesn’t change, and if you meet any requirements for the grants (gpa, residency, whatever).
Ah, yeah I meant a subsidized loan of $4500. I imagine they financially could pay the remaining $16k a year, but I’m not sure if they’ll want to. My brother starts college in 2017, and I’m not sure how much they saved for both of us. I imagine they’ll be able to pay at least $8k though, and possibly $10k. I’d like to not take any private loans out, and I’m looking at the Perkins loan. If that’s even possible. I will be working at least part-time during while at school, and I plan on putting most of what I earn towards debt; even if it’s only a few thousand a year.
I would definitely talk to them and get a firm commitment (or at least an estimate) on how much they can pay. You need to know how much they can pay so that you can tell if the school is reasonably affordable.
The Perkins Loan is a good option but keep in mind that (1) not all schools participate in this program and (2) the Perkins loan (unlike the Stafford loan) has limited funding per school and they usually award it on a first come and first served basis – once it runs out, it’s gone. It’s also need-based so if your EFC isn’t low it makes it harder to receive it in your award.
I would recommend reaching out to the financial aid office to ask them about loan availability for the Perkins loan. There’s a chance that they don’t have any because they didn’t award it to you.
Good to know, @Dmitrir. I’m still getting familiar with the different types of loans, so I assume I should also look into the Stafford loans. I know I mentioned the $28k debt possibility above, but something like $24k would probably be more ideal.
I did get into another school and they gave me $10k right away, and my FAFSA wasn’t available this morning, but my uncle said sometimes you can mention that another school gave you more money. If a school really wants you then they could potentially give you a bit more. Any validity to that? He is familiar with loans, so I trust it’s not something that he’s just making up.
The Stafford loan is the $6500 you already have. It is the one that comes in the subsidized and unsubsidized portions.
That’s true but it really matters what school it is and what they gave you. Most schools don’t have a lot of aid to give so they don’t have a lot of wiggle room even if they really want you. In general, schools only match the financial aid of ‘peer’ schools. Like, if one of your schools was a really top-ranked liberal arts college and the other school was public commuter school, they wouldn’t feel the need to compete with each other.
That makes sense, thanks! I do have some of my own money already saved and plan on working throughout, even if it’s just part-time during the school year.