Getting it all sorted out!

Paying for College
1

<p>I received my aid award from the Ohio State University on Friday. I'll be able to get $7188.00 in grants (Pell, OCOG state grant, ACG). I have to max out my Stafford subsidized loan ($3500.00) and my unsubsidized loan ($2000.00).</p>

<p>That leaves $13145.00 needed in a PLUS loan. However, my mother has bad credit and probably won't qualify for it. According to the OSU</a> website, I would be able to receive an additional $6000.00 in an unsubsidized Stafford loan. That would leave me with $7145.00 in unaccounted-for costs, which will likely have to be paid for via private student loans.</p>

<p>The problem is that I have little to no credit history. My mother would probably not be able to cosign. I have an uncle that might, but I have not talked to anyone yet about my college financial situation. How difficult is it to get a private loan under my circumstances?</p>

<p>(Not attending, finding a different university, earning GECs at a community college, skipping a year, etc. are not options!)</p>

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<p>Hopefully, you are not able to qualify for a private college loan. Ohio State University is not worth graduating $80,000 in debt for undergraduate. </p>

<p>Other options – work/study, summer employment plus those you mentioned that were not options.</p>

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<p>If you don’t have a willing cosigner with a decent credit history, you cannot get a private loan. If you cannot get a private loan, you cannot afford to attend. Hate to be harsh, but you can’t exclude all your options that don’t include attending Ohio State right now.</p>

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<p>Other than winning the lottery, OSU seems to be completely unaffordable for you. Stating that there are no other options but OSU is pretty immature, IMO - like demanding that your car be a new Mercedes, when you can really afford a 10 year old Subaru.</p>

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<p>You’re talking about $50K before you touch private loans. What are you career plans? You will end up with crippling debt that will stop you from having the basics like a home and decent car in most cases. You’ll still be paying when your own kids go to college. If you get behind they will take it from your paycheck. Please, please talk to an adult you trust. 4 years at Ohio State is not worth what this debt will do to your life.</p>

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<p>If your mom can’t qualify for a Plus loan, then I don’t think you can borrow $6k more than what you’ve been offered ($5500 in Staffords)…I think you can borrow an additional $4k. $5500+ $4000= $9500.</p>

<p><a href=“Not%20attending,%20finding%20a%20different%20university,%20earning%20GECs%20at%20a%20community%20college,%20skipping%20a%20year,%20etc.%20are%20not%20options!”>I</a> *</p>

<p>where else did you get accepted? This school isn’t do-able. No one is going to lend a young person with no real income this kind of money.</p>

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<p>DylanH, you would not get an additional $6000 for a PLUS denial. You’d get an additional $4000, for a total of $6000 in unsubsidized loans (I am a financial aid officer).</p>

<p>I agree … do NOT go to OSU. You cannot afford it. PLEASE consider a less expensive option. How about a CC, or is there a state school you can attend while living at home? If you really want to go to OSU, consider doing freshman & sophomore years at a less expensive school. Work & save. If you go as an upperclassman, you can live off-campus & cut costs that way (dorms/meal plans can be a lot more expensive than living with a bunch of upperclassmen in a house!).</p>

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<p>I mentioned that certain things were not options, because I didn’t want people telling me what things are or are not worth. I know my other options, but I would rather hear an answer to the question.</p>

<p>The only other university I applied to is the University of Toledo, which a local university that’s considered cheap and let’s pretty much anybody in. The average cost of attendance (tuition, room and board, etc) is about $20,000 per year. That information is not for this year, either, and we all know that costs don’t really go down.</p>

<p>The estimated cost of attendance for OSU, according to my aid award, is $25,833 per year. That additional $5,000 makes little difference in my situation. Either way, I will need loans. It does not matter if I attend a large, “expensive” state university or a small, “cheap” state university. Poor people will have to get loans. That’s fact, no matter what university you are going to.</p>

<p>Now, I do not intend to stay on campus all four years. That would be crazy. At both universities, not living on campus cuts the cost of attendance by about half.</p>

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<p>I’m glad you know your other options…I am confused…you say your question is not for this year…when IS the question for.</p>

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<p>Please explain…both of my kids lived off campus for two years…neither of them cut their costs of attendance by HALF. In fact, their housing wasn’t even HALF of what it would have been on campus. Yes…less expense but I don’t think you are being realistic is assuming that your COA is going to by “about half” less. Not highly likely. </p>

<p>It does not sound like OSU is affordable right now with the package you’ve received. Is it possible to go to Toledo (and commute from home…that WOULD save you money) for two years and then transfer to OSU to finish your degree?</p>

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<p>The estimated cost of attendance for OSU, according to my aid award, is $25,833 per year. That additional $5,000 makes little difference in my situation. Either way, I will need loans. It does not matter if I attend a large, “expensive” state university or a small, “cheap” state university.* Poor people will have to get loans. That’s fact, no matter what university you are going to**.*</p>

<p>Ok…your FACTS are wrong. Poor people do not have to get private loans - because poor people often can’t qualify. You seem to be under the impression that some bank is going to give you a loan. Unless you can produce someone with a great income, great credit, and a willingness to co-sign your loans for 4 years, you’re not going to get the money. </p>

<p>Poor people who don’t get great aid, tend to have to start at a CC, and then commute to the local public U. They often can’t graduate in four years because they must work a lot of hours at the same time.</p>

<p>Another reason why poor people (and others) do not take out the kinds of loans that you’re considering is because they know that they won’t earn enough after graduate to be able to pay them back while paying for their own living expenses. </p>

<p>So, your belief that poor people take out these loans is just wrong because banks don’t lend money to poor people. </p>

<p>Unless you can commute to Toledo, commute to a CC, or find someone who’ll co-sign (a bad idea for that person and you), you really don’t have a lot of other options.</p>

<p>*At both universities, not living on campus cuts the cost of attendance by about half. *</p>

<p>That is not true unless you can commute from home for free. Room and Board at OSU is $9k. If you’re living someplace other than home for free, you’re still going to have some costs - for rent/food/utilities.</p>

<p>BTW…you may think that the $5k extra a year for OSU makes little difference…well, when you’re adding $20k more to your loans (especially at a private rate), it sure will make a difference.</p>

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<p>where are you getting the $6,000 extra number from? it is only an additional $4,000 if you parent is turned down for a PLUS.</p>

<p>It will be difficult for you to find a private loan. You will have to have a cosigner with a good credit rating who is willing to sign for 4 years. Cosigning is quite risky for the cosigner as it affects their own credit rating and ability to take other loans just the same as if the loan is in their name (because as far as lenders is concerned it is). </p>

<p>Run your numbers through a loan calculator like the one here
[FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Loan Payment Calculator - Finaid)
With increases and the interest accumulating while you are in school you are looking at payments of $1000+ a month every month for 10 long years.</p>

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<p>Poor people who take out loans anywhere close to what you’re discussing will in a vast majority of cases remain in poverty because of debt.</p>

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<p>DylanH – you mentioned that you were accepted to Toledo University “a local university that costs about $20,000”.</p>

<p>The estimated cost of attendance for Toledo University for a student who commutes (which is certainly possible if it is a “local” university) is $16,324. </p>

<p>You were awarded $7188 in grants (Pell, State, etc) which should all be available at Toledo University. This leaves you needing an additional $9136.</p>

<p>Add in work/study (which should be available with your EFC) of $2000 and money you can earn over the summer of $2000. this is a standard amount expected of students at most universities.</p>

<p>This leaves you with a gap of $5136 – which can be covered by the $5500 stafford loans available to you. </p>

<p>no need to take out additional stafford loans or private loans. </p>

<p>OSU is what you want, Toledo is what you can afford.</p>

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<p>^^^ Exactly. Please do not bury your head in the sand. Understand that a loan accrues interest from the moment you borrow. $5000 is NOT $5000 in 4 years. I know that you don’t want to hear our advice, but it is excellent advice.</p>

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<p>Actually, the COA for a commuter student includes a budget for living expenses. The DIRECT costs for a student living at home & commuting to UT are much lower. You can go to school for less than $9000 for the year. Using last year’s tuition rates, tuition is about $3500/semester. Add fees & books, and it should be quite do-able on less than $9000. You would not have to borrow ridiculous amounts of money. Please consider this as an option.</p>

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<p>If you can’t get that loan and by estimating that you will be in a major hole in debt think of another alternative. Someone mention workstudy or get a part time job at a retail store think smart and don’t let the debt accumulate. You can always go to a CC and then transfer nothing wrong nothing special plus you can save some money and than finish OSU. Thats how I have been doing it started in a CC then transferred to a public university its not the best its not the worse, but I am not in debt I have everything paid and I live life without economical stress. However I have been working since I started college its delayed my studys an year, but I don’t mind. Just play it smart and wise think of what will happen in the future with that huge debt if you really want in think of a possible solution or consider something I said or someone else said.</p>

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<p>^^^</p>

<p>Excellent point about commuting to Toledo would have such low direct costs.</p>