Help me understand my NYU financial aid offer?

Paying for College
1

<p>Here is what I was offered, for a grand total of $66,000
Steinhardt Scholarship: 43,910
Pell Grant: 5,730
Federal Work Study: 3000
The rest in loans: 13,960</p>

<p>Here is the budget breakdown, also totaling $66,000
Tuition: 43,746
Books: 1070
Fees: 2944
Loan fees: 58
Room and board: 16,780
Misc: 2000</p>

<p>So I have a few questions.
If there is anything left of the loans after paying NYU fees directly, does that money go directly to me?</p>

<p>Does room and board include the meal plan? If my fees end up being more than the aid I was offered will they increase my aid?</p>

<p>What is "miscellaneous"? Usual things students have to buy for school or actual living money for me (outside food, toiletries, transportation)? </p>

<p>Basically, do these offer me enough money to live without the support of my parents? They don't want to give me any extra, and I will only have time for one part-time work study and it looks like that will go directly into my tuition. :/ </p>

2

<p>What are those loans? it sounds like some are Parent Plus loans. If so, those would be loans that your parents would have to take out. since you are a full Pell student, it’s unlikely that they will take out Plus loans.</p>

<p>the scholarship only pays for tuition.</p>

<p>Pell and Direct/Perkins loans can go towards R&B</p>

<p>work study can go towards misc and second semester books, but you’re going to have to work this summer as much as you can to pay for first semester books and any other shortfalls.</p>

<p>what is the exact breakdown of those loans.</p>

3

<p>Thank you!</p>

<p>Heres the loan breakdown (per year)
Federal Perkins Loan: 2,400.00
Spring Federal PLUS Loan: 3,030.00
Subsidized Loan 1: 3,500.00
Unsubsidized Loan 1: 2,000.00
Fall Federal PLUS Loan 1: 3,030.00</p>

<p>They’re okay with taking out the plus loans but don’t have any money to give me. It I have Pell grant, we can’t take out plus loans?</p>

4

<p>To answer your question directly, the money that you are granted by NYU, including all of the loan proceeds will got directly to your NYU bursar’s account by semester. NYU will also bill you for the first term for tuition and fees (some will be fees for the entire year), room and board (actual cost for the semester) and any other direct bill items. for that first semester. So what you have in your account from the loans, scholarship, PELL (half the amount for the year) will be used to cover those first term bills. If there is anything left over, yes, it will go to you. How and when NYU disburses those funds, I do not know, as each school has its own administrative procedures. Usually it takes a few weeks before they will release that money. Some schools will not release it until the drop date of classes. You have to call the bursar’s office and ask them what their policies are and how you can get the money and when.</p>

<p>You will likely need some money up front. Did you or your parents pay some deposits for accepting their offer and for a room? That is the start of it. You have to often come up with that by May 1 and then you need money to get there to the school, supplies, books, toiletries, necessities, discretionary funds. You need to have something until any money (if there is any) is released by the bursar’s office. </p>

<p>Work study is not guaranteed. You have to get to NYU and when you get there, you go to the Work Study office and look at what jobs are available and at your schedule and your allotment and try to find something that works for you. IF you find a job, you then have to work it for at least two weeks or whatever the payroll period interval is before you get a check. That check will be made payable to you. It’s just as if you should go to NYU and look for a job in that area, except you have a defined place with a list of work study jobs to check out. So I would not count on getting a check from that for at least two weeks, maybe a month. You can earn up to $1500 first semester, but you get the money after you put in the time of work, not all at once, and you get it in a paycheck. </p>

<p>Parent PLUS is also not guaranteed. Your parents have to apply for it. They can do it on line. Only one parent has to apply, and income is not an issue. Nor is a credit score. But if the parent owes money on accounts more than 90 days overdue on the credit report, that can be a denial. If denied, you can get another $4000 in unsubsidized loans or up to $3030 if you are hitting a COA limit (Cost of Attendance). You will have to fill out loan paperwork and undergo info session and counseiling, all online before getting your loans (as well as your parent for PLUS) and fill out a MPN (master promissory note) for all of that money to go to your NYU account, and it will all go in by semester, not the full year. </p>

<p>So you may need some upfront money for deposit, travel, supplies, things in general and books. Most likely you will. So if your parents can’t give it to you, you need to find a job this summer to get a stash started. </p>

<p>Congratulations on getting accepted to NYU and getting such a generous package from them. </p>

5

<p>We were able to pay the $500 deposit but got approved for a deferral for the housing deposit. Thank you so much for your explanations, that helped a lot. One last question- in the beginning of the semester when I’m being billed, with the 3k work study be credited to my bill in advance and then I pay it back as I earn? Or will I have to come up with that money up front and then keep what I earn?
Thanks again, so much!</p>

6

<p>No, you don’t get advance credit for work study. Work study is just like a job. You do your job and you get a paycheck every week or two weeks, whatever the schedule there is. You use it for your living expenses as you go along.</p>

7

<p>Ahh yikes. Okay, thank you so much for all of your help!</p>

8

<p>No. Work study is not even guaranteed. You might not even find a job that works for you. It’s an allotment you can get from the work study fund so you can try to get a work study job, and then you get paid just like a regular job. You have to come up with that money up front and then you keep what you earn from work study.</p>

<p>The difference between work study and any old job you might find in NYC when you get there, is that the job is funded by federal money and the positions will likely all be within the University. You have less competition for a job as only WS are allowed to have those jobs as only they can get the money (some caveats to that but pretty much as I say), Because they are specifically Work-STUDY, they are sensitive to your schedule, limitations, the college calender, and offer flexibility in hours you may not find when working for the hot dog vendor on the streets of Manhattan. You don’t pay social security tax. The income is not included for FAFSA and PROFILe purposes next year when applying for financial aid. </p>

<p>But it’s a job and you only get paid what you actually work, and you get paid by pay period AFTER you put in the hours.</p>

9

<p>63,508 has to be paid up front. So that will be covered by 63,600 in grants and loans. So there will be almost $100 given back to you. That’s not enough to cover your books for the first semester, which is estimated at $535. You can try to keep that down by purchasing used and books can be rented now too. But there will be some you can’t avoid buying. Misc of 1,000 per semester has to cover subway fare, tooth paste and deodorant, whatever small expenses you have, a slice of pizza out. Your work study can cover that, and you can save enough for the next semester books. Look for work study online before the semester even begins.</p>

<p>Seems like you should be working this summer to help. Your parents Plus loans payments will start in spring, I think. Next year those payments will double, Jr year triple and Sr year they will be 4x unless they are deferred. Are you sure this is your best option? Seems you want to be working summers to help your parents with those payments.</p>

10

<p>You might also ask if you can get book vouchers for the bookstore against your account. Though a lot of times books are cheaper from other sources. </p>

11

<p>Re room and board: the number there is an estimate that will vary depending on the dorm, room type, and meal plan you get. Here are the proposed housing rates for the upcoming year: <a href=“http://www.nyu.edu/content/dam/nyu/resLifeHousServ/documents/AY2014-2015PropHsgRates.pdf”>http://www.nyu.edu/content/dam/nyu/resLifeHousServ/documents/AY2014-2015PropHsgRates.pdf&lt;/a&gt; and meal plans (scroll down the page) <a href=“http://www.campusdish.com/en-US/CSE/NYU/MealPlans/”>http://www.campusdish.com/en-US/CSE/NYU/MealPlans/&lt;/a&gt; . Freshman are automatically signed up for the 300 meals per semester, which you can change, but you are required to have a minimum plan of 225 per semester (ridiculous IMO, more than anyone really needs) if you are living in a traditional res hall, and a minimum of 113 per semester if you are living in a hall with a kitchen</p>

12

<p>Thank you soo much @cptofthehouse and @brownparent! That clears a lot up for me but also makes me a bit nervous. I’ve been looking at the work-study positions available on NYU’s careernet, a lot of the opportunities seem great! I’m going to be applying as soon as I get my classes and practice schedule so I know my availability. I was also definitely planning on working all summers and saving up. </p>

<p>@jazzcatastrophe weird I was just looking at those before I opened this haha. Thank you! But yeah I think that amount is pretty crazy :frowning: </p>

13

<p>Keep in mind that this is the FA for freshman year. Each year the tuition, room and board and fees will rise while the FA probably will not. You might or might not get WS or Perkins loan next year. Do you have a four year plan? The Parent Plus loans will need to be applied for each year.</p>

<p>This is a great package but if your parents expect you to pay the Parent Loans when you graduate then you need to think about it. Right now you loans of almost 8000 in your name and you are just starting.</p>

14

<p>As of right now, you need $63,528 to cover your direct cost in order to walk on campus, attend classes, sleep in the dorms and eat at NYU.</p>

<p>Your financial aid package has $49640 in grant aid (monies that do not have to be repaid).</p>

<p>this leaves a balance of $ 13888 that has to be paid by you and your parents (in the form of loans). </p>

<p>You wil be borrowing $7900 year one and your parents will be borrowing $6060. </p>

<p>If you are receiving full Pell, your parents are low income; this may be a hardship for them to repay this money. </p>

<p>If you had to borrow the same amount each year (unlikely because tuition increases each year and the amount that you can borrow increases each year), we are talking about your leaving NYU with $55,840 (which IMHO is too much debt as your parents will have $25k of debt and they are not making a lot to service this debt).</p>

<p>However, it is highly unlikely that any money will be coming back to you because you will need heath insurance; if your parents do not have adequate health insurance, you will have to purchase the school plan, which his ~3500. This money is not covered in your FA package</p>

<p><a href=“http://www.nyu.edu/content/dam/nyu/studentHealthServices/documents/PDFs/student-health-insurance/Health-Plan-Rates-2013-2014.pdf”>http://www.nyu.edu/content/dam/nyu/studentHealthServices/documents/PDFs/student-health-insurance/Health-Plan-Rates-2013-2014.pdf&lt;/a&gt;&lt;/p&gt;

<p>I would recommend that you get a summer job or perhaps 2, you can pay for the health insurance (you will be billed half of the cost in august).</p>

<p>You will also need money for start up costs; getting to campus, books, dorm set up, perhaps a new computer, getting around campus, because the dorms are not centrally located to the school and the bus system, is the pits.</p>

<p>While you have a 'generous package" from NYU, it may not be the best financially feasible package for your family. You need to talk with your parents (perhaps direct them to this thread) to discuss how they are going to feel about you and them having this kind of debt</p>

15

<p>Yes, I forgot about the health plan. Find out right away if you are covered under your parent’s plan to the colleges’s satisfaction, or will have to purchase that in addition to your other costs without aid to cover it.</p>

<p>While you can likely rely on the work study or just get a job on your own if you don’t get it, it is true that the Perkins loan is something you may not see again, in which case your parents will have to increase the Parent Plus loan by that amount. Sounds like you will have nearly 60k debt for this school. That’s a monthly loan payment of $700, actually higher because some interest will be accruing. A bit too much really. </p>

16

<p>My parents have agreed to pay the parent plus loans. They just don’t want to have to be sending me money to support myself while I’m in school. I’ve explained all of the numbers to them and they keep telling me not to worry about it. My mom makes money internationally, but she doesn’t file taxes soo she has the funds, she just doesn’t want to part with too much of them, if that makes sense?</p>

<p>I’m okay with my part of the loans. I think that my education is worth it and I’ve accepted that I’ll be making payments for a while. I’ve also been reading a lot about the different repayment plans and programs that help out those with student loans. </p>

<p>Thank you for the insurance info! I’ll definitely be working full time this summer. </p>

<p>I could just be complicating things more but I was also offered a guaranteed transfer to Cornell sophomore year. I was not planning on taking it but if something does happen that makes NYU unaffordable the next year I will definitely be looking into that, depending on what Cornell gives me. </p>

17

<p>Well it sounds like your mother may have not declared all her income and you have financial aid under fraud? Yikes.</p>

<p>Cornell GT has gpa and some course requirements, but you’d get better aid at Cornell, if you are really qualified.</p>

18

<p>The international money that your mother makes must be submitted on the FAFSA. You are playing a dangerous game; fraud on federal aid (in addition to defrauding the IRS) is a criminal offense that can lead to jail time, suspension of financial aid, repayment of all aid that you fraudulently received, dismissal from your school or rescinding your degree leaving you with a worthless piece of paper. The sad part is that it is probably not enough money to take the kind of risks that you are taking.</p>

19

<p>I’m going to show my mom this and try and talk to her some more. Thank you all very much! </p>

20

<p>Not to beat a dead cost but are your parents comfortable with paying the additional cost due to increases in tuition? For reference, I found this on the web:</p>

<p>2010 - $38,765 Tuition and Fees. 3.7% Annual Increase
2009 - $37,372 Tuition and Fees. 5.9% Annual Increase
2008 - $35,290 Tuition and Fees. 5.6% Annual Increase
2007 - $33,420 Tuition and Fees. 5.5% Annual Increase
2006 - $31,690 Tuition and Fees. 5.3% Annual Increase
2005 - $30,094 Tuition and Fees. 5.6% Annual Increase
2004 - $28,496 Tuition and Fees. 6.9% Annual Increase
2003 - $26,646 Tuition and Fees. 5% Annual Increase
2002 - $25,380 Tuition and Fees. 4.3% Annual Increase
2001 - $24,336 Tuition and Fees. 3.8% Annual Increase
2000 - $23,456 Tuition and Fees. 3.9% Annual Increase</p>

<p>So it’s reasonable to assume tuition will increase 5% plus a year. Room and board will also increase,</p>

<p>So if your parent contribution is constant;</p>

<p>year 1 8K in loans
year 2 8K+2
year 3 8K+2+2
year 4 8K+2+2+2</p>

<p>So just looking at tuition increase and not any taking anything else into account you will have 44K of debt plus accrued interest. That is low balling it. You will also need a co-signer. Are you comfortable with that? Due you plan on grad school? </p>