Good Morning. I could really use some advice concerning private student loans. My son received aid from FASFA and a scholarship. He is left with the cost of his housing/food which is $6k a semester. I am a single mom and wish I could afford to pay this for him but just can’t. And his father won’t help. So looks like a private student bank loan is the only option. Does anyone have advice or guidance on where is the best place to get one? I have heard not so great things about Salle Mae but who knows. Just really don’t know where to start.
I moved this to the financial aid forum.
First question…does your S have a less expensive option for college?
Next…Your S won’t qualify for a loan on his own. The loan will either be in your name, or you will have to co-sign a loan for him.
Here is some general info on federal loans. Federal Student Aid
You could take a Parent Plus loan, the downside of those is they have relatively high interest rates and high fees. Do you have home equity you could tap?
Other options for your son are to take a gap year and work, or go to school part-time and work.
Thoughts @kelsmom?
But wouldn’t that mean losing the scholarships?
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He may need to work and if he has no loans yet is it too late for the student to get the $5500 ie work and take the govt loan if he doesn’t have one.
I’d hate for your son to leave college financially strangled. $6k a semester and potentially growing will potentially lead to this.
What’s his major ?
Thank you for moving it. I couldn’t find the Financial Aid forum option.
I know he should go to a community college for 2 years. I did that and it is so wise. My son has been thru a lot the last 4 years. He really wants to be able to go off to college and start over. It means so much to him. As unwise as it is. His major is hard to find around here so he is very lucky to be going where he is going. He is so excited.
I am fine cosigning for him. I just don’t know where to start on where to go for the loan.
Loans really scare me. But it has come to this and it seems like it is what needs to happen. I just don’t know where to start.
Did he qualify for subsidized or unsubsidized federal loans? The first loan for him to take is the subsidized federal loan.
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His major is film. Very hard to find without going out of state. He is going to a great film school that is out of state but only an hour away so there is tuition reciprocity so that helped. Right now his mindset isn’t about what happens after college. He just won’t listen to what I have to say about it. He is just very focused on his main goal of going away. I get it, believe me. But I can see what is going to be waiting for him in 4 years…he doesn’t.
So I guess I need to help him with getting a loan I guess.
Has he taken the $5.5k federal loan that is available to all students who file FAFSA? And the $12K gap is after that loan?
Did he qualify for a Pell grant thru FAFSA?
After that, any scholarships/aid likely came from the school, unless he received some scholarships on his own.
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He got both a subsidized and unsub thru FASFA. The max he could receive. He also got a grant and scholarship.
Yes. He received $5.5 federal loan and a grant thru federal FASFA and scholarship thru the school. The $12K remainder for the year is for housing/food.
So he’d have $17.5K in loans for year one - so that’s $70K plus for a film degree after four years.
That’s not realistic for 98% of kids.
I think he needs a job to help put money in his pocket - even 10 hours a week at $15 per adds up.
He also might need to position himself for an RA job (which isn’t assured) in the future or moving off campus into a low cost apartment and cooking.
It’s a bit late now but yes, perhaps a gap year (don’t know stats, desires, etc) could put you in a better financial position - and he could work during that year.
But it depends on stats and if he’s willing to be further from home.
This is one of those - you’re on the train tracks, the train is coming for you, but you’re unable to get off because you don’t want to hurt your kid.
But in the long run, it has the potential to be crippling.
But there are steps he can take to mitigate - like get a job - or perhaps you a second on weekends, etc. - many places are struggling for workers and even fast food (by me) is $16+ an hour, etc.
Just some thoughts…
PS don’t forget - not only do loans come with interest (high today) but also up high up front fees.
Man…this is all so overwhelming. I really thought I would be in a better position when my kids went to college.
If I demand he give up the university he will for sure lose it!! I can’t even imagine the anger.
I have no other people to help me thru this. Everyone else I know have been able to cover that remaining balance with savings and such.
I have savings to cover maybe $6k for the year. But is that even helpful?
If he ends up having to do the student loan…where do we even get one?
He can work a 10 hr a week job during the school year. He prob qualifies for work study on campus. If he can find a quiet job where he gets paid to sit and study, like a desk security job in a quiet location,that would be great. And during the summers, he can work as much as 60 hrs a week and earn much more. Of that 12k a year, he can earn at least half of that.
Could any family members loan or crowdfund him the 6k for this semester? He could prob earn the other 6k before spring, by doing the above and working all through his xmas break.
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It is helpful for one year but you need 12K.
But you are just kicking the can down the road.
I’m not a loan parent - so I don’t know but my kids get solicitations from places like Discover Loans. Others can help you better. The Fin Aid office can help you.
Bu the reality is a film student will end up hourly or in another area and you are talking about, in my opinion, way too many loans.
You might need to have a heart to heart with your son and take a year off and work. What were his stats - GPA and test score. What is his current tuition?
You might need a reset - because you will strangle both him and yourself.
But again, if he got a job for 10 hours a week - my daughter started working in hotel banquets - as long as she did one shift a month, they let her work when wanted with 48 hour notice. 18 dollars an hour.
And in the future, he might find housing/food cheaper off campus or he can apply (but not be assured) of an RA.
I’d listen to folks here who know about loans…but Discover is one we regularly get ads from. Maybe SOFI. And talk to the aid office for suggestions. You might also visit a local bank.
But you are avoiding disaster today - but it’s going to be potentially worse tomorrow.
Did he work this summer? Surely the situation was known.
As I said, you can also take a second job if you want to go ahead with this.
There are ways to make money - whether a job, uber, etc.
Good luck.
I agree with others that he should try and work to lessen the amount he will need to borrow. If it isn’t possible for this year he should focus on earning as much as possible during school break and next summer to minimize any borrowing. Anything you can contribute will help. Also, getting a RA job, if possible, is a great solution - at many schools that is free room/board.
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Look at the Parent Plus Loan (in the link in my first post), college loans thru Discover and Sallie Mae, ask a staffer at your S’s school’s financial aid office, and your bank/credit union.
Do you have home equity to tap?
Can your S talk with his bio dad, assuming there’s possible money there and/or as possible co-signer for loans? You don’t have to answer this publicly, just brainstorming.
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I see you have savings to cover the gap this semester. Sit down with him and have a very frank discussion about money, and academic expectations. What concerns me is that this is late august, and it is only coning up now? He sounds immature, not having realized that he needed to do comm college route to state U, not having worjed a ton this summer and saved it all, not having worked and saved thru the last two yrs of high school. And then being angry about the financial reality of it all. Does his past academic record merit this financial stretch?
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Here’s a loan payment calculator. Mapping Your Future: Student loan repayment calculator
$75K in loans ($27K federal student loans + $48K room and board) at 7.5% (I just guessed at a blended rate) for 10 years is roughly $900/month. That’s a lot for a 20 something to pay back every month.
I would encourage him to work during the summers and school year. If he took a gap year, he could also save quite a bit, if he can wrap his mind around that (and provided the school grants the gap year). The RA idea, starting soph year, was a good one too…but these jobs are often highly competitive…something for him to research.
Also, film jobs when he graduates may not be very plentiful and often don’t pay well.
What area of film does he want to study/work in?
Re: money—remember that your expenses may go down while he is at college since your grocery bill will go down and if you are currently paying for any activities, that cost will go away. So perhaps some of those funds can be “redirected” towards his room and board .
Are there younger siblings who may ask for the same consideration when it is their turn?
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My kids have loans (5 of them). They’ve also worked since 14 (part time during the school year, full time summers) in HS and college. They’ve moved off campus to save money. They also majored in areas where employment is plentiful and pays well. They’ve moved home for a bit after college at some point to aggressively pay off loans. We used Sallie Mae because they offer co-sign release after 12 months of repayment, and we pay interest starting day one. My youngest is commuting, business major but unsure of what he wants to do. We will not be co-signing loans for him, I don’t know if he will be able to pay them back (not very responsible financially). Fortunately with him living at home we can make it work with his 529.
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