<p>Hi all,
I need some advice. I just completed the FAFSA and our EFC is $18,500. How do you (we) come up with that amount of money each year? Unfortunately, we do not have any savings and we live in California and our home equity is gone! :( </p>
<p>Does anyone know how parents of college students come up with the EFC?</p>
<p>Are there student/ parent loans that are available?</p>
<p>Any help would be much appreciated...I am starting to panic.
Our daughter has worked very hard to get into some wonderful colleges and she deserves to go. I need some advice and suggestions. </p>
<p>I know this doesn't address the issue of how large an amount $18,000 is to come up with, but as far as whatever portion of it you can pay out of income, you will not be expected to just round up the total sum for a big one-time payment. There are monthly payment plans the schools will offer you. That can help a lot, spreading it out over 8 to 10 months. There is usually a modest registration fee to enroll in the payment plan, but no interest on the basic charge.</p>
<p>Also, unfortunately, your FAFSA EFC isn't necessarily all you'll have to come up with. Most schools do not meet 100% of need, and even those that do might have their own methodology for determining what you would be expected to pay. In our case, what the college expects from us is almost identical to the FAFSA EFC, but that is not always the case!</p>
<p>your EFC is meant to be paid from SAVINGS, income and as a last resort, loans. Unfortunately most people don't have a clue about EFC until after college apps are done. Saving to pay my EFC for 4 years out of my savings meant living like a pauper for the past 10 years (15 years ago I was making less than 30K). No vacations, no house decorating, driving 18 year old car, no restaurants. If I didn't NEED it, I didn't have it. I managed to save over 60K in 10 years and my income just reached 70K (10 years ago it was 45K). Most people would not live like I did (and continue to).</p>
<p>In the case that $18,000 is what it costs- for room/board tuition etc, there are ways to minimize expenses.</p>
<p>Books can be found used- through bestwebbuys, amazon- ebay-powells et.al & on campus.
That can save a ton of money
Summertime the student can earn ( if living at home) at least $2,000 to save toward the next school year. If possible, the student can also take an online or site based class at a community college, that can go toward graduation each summer- which will save a bit of time & money.
my daughter attended a very small LAC, and she enjoyed being able to take classes at the CC that her school didn't offer.</p>
<p>Going to school instate helps- sounds like that is already covered.</p>
<p>Working with Americorps, either during school or during a year off, can earn money that will count toward school loans ( and loans are deferred during)</p>
<p>some schools also have merit awards that you may not know about until you are admitted.
I know it sounds overwhelming- but you are not alone.</p>
<p>Thank you all SO much. I feel much better now knowing that there are some alternatives such as the Parent Plus Loans and so forth. My daughter is very frugal, she went to a summer program @ Cambridge UK (on scholarship) and she was told to bring at least $600 to spend over 1 month on lunch's as well as toiletries, etc. She only spent $187! So some of the suggestions for used books and so on, we will for sure do.</p>
<p>She has been offered some really wonderful merit scholarships at some top notch colleges. So for instance, let's say the school costs $47,000. She received a $23,000 merit scholarship, do we have to come up with the $24,000 difference? And how do we come up with that $24,000? Parent Loans, Student Loans? Student Summer Savings?</p>
<p>All of the above. We are in that situation. We are paying some out of our savings, some out of current income, borrowing some. Son is paying some out of his savings, out of current job (works part time at school and during breaks), and student loans. Just as a tip, the unsubsidized Stafford offers a lower interest rate than the PLUS. So if your D takes that loan, and you pay for it, you can get a reduced cost than if you take out the PLUS.</p>
<p>she can get a stafford loan up to 5500 for freshman, up to 3500 of that can be subsidized (no interest accrues while she is in school) if the school determines you have need (which it seems like you do). She might also be able to get a work study job to give her cash in her pocket or for book money. Student loans have a much lower interest rate than PLUS loans</p>
<p>Is this your oldest? Don't forget the other three. I always feel terrible for kids who write about their financial problems and say that the parents' money was all spent or the loans maxed out for the older siblings. You need to develop a long term strategy that considers the needs of all four. If you are having a hard time coming up with money for the oldest, she may have to consider some more affordable options. (Every year there are many hard working deserving kids who have to pass on their first choice schools because the money simply is not there.)</p>
<p>No, this daughter is our youngest of 4 daughters. And yes, we did help the other 3 through school financially as much as we were able to. The oldest daughter went to a 4 year college and then on to graduate school. Our middle 2 daughters went to trade schools (@ over $10,000 each) They all helped in financing their educations and are all happy and successful. </p>
<p>However, our youngest daughter is Valedictorian, straight A's all through high school and a full International Baccalaureate Diploma candidate. She has worked very hard and deserves to go on to a wonderful college. That is one reason she applied to over 10 schools, so that she could maximize the amount of merit aid she might be offered. </p>
<p>My husband and I have worked very hard raising our 4 daughters and until 2 years ago I was a stay at home mother, which both my husband and I are very proud of. So....we needed every penny of my husbands income to allow me to stay home and be with our girls and believe me our daughters were very proud to have their mother home, to be there for them, listen to them, advise them. Children spell love....T..I..M..E. The time you spend with them not the amount of money you spend on them or how you fit them into your hectic careers. </p>
<p>Of course with that said...we have no savings and we had planned to use an equity line to help us put our last precious daughter through college and now we have lost over $200,000 in equity in the last one and a half years.</p>
<p>So that's why the EFC is so incredible scary! </p>
<p>I apologize for the rant...I just think it is incredible that the EFC's for most modest income families is so high and for so many of us almost impossible to come up with in these economic times.</p>
<p>You were very fortunate to be able to stay home for your daughters. For us, we were a 2 income family and we supported an elderly parent for 16 years so it was difficult to save and prepare for the future when you are preparing for today. Many families find themselves in similar situations when they have no idea about EFC and the impact and ramifcations it has.</p>
<p>Momti4, I also stayed home and fully enjoyed that privilege although I know lots of fully engaged parents who are two income. I stayed home too long for our income and our college dreams.
I am now "paying" for my decision to stay home, and frankly, if I had factored in knowing about the drop in our home equity, the losses to our retirement, the losses to what we did set aside for college, I would have gone back to work about 2-3 years ago..when we were paying full price for Duke for our hard working son who also did some outstanding things that earned him admission to three reach colleges.<br>
My second son will pay the price for my not having worked while he was in high school. We "expected" to be doing as well in 2009 as we were in 2005, but instead our assets and income declined. Not only that, but even if we are qualified now to not pay full ride at private colleges...I am skeptical that hard working excellent stat son number two will get merit money or need discounts..after all..hundreds of people filling out their FAFSAs right now and turning in their tax forms to IDOC and CSS Profile..Had income in 2008, but just think about what they are going to be writing in the Extenuating Circumstances lines...so your child is also going to be compared in need to students whose families have NO JOB and no way to pay their bills or their EFCs.<br>
In other words, it will be Quite a New Ball Game and take a few years to sort out in college financial aide offices...where they do try so very hard to help the kids who need it most. I have no idea what kind of price our son will pay yet...but we will not be able to pay our full EFC for him. Why? Because we resorted to using our equity in our house at times for Duke. Didn't see the drop in home valuations coming....we didn't even take out the Stafford Loans we were qualified to take out yearly...as we didn't believe things would ever get this bad. Now we regret not taking out Stafford Loans yearly. Our Duke son just put his name on a 7500 loan to help us out. He worked hard every summer but two summers he had jobs in expensive cities that ate his income..but the needed the jobs for his resume...
If your girl is valedictorian, keep in mind her graduate school goals and your ability to help her out there. My spouse owed Vandy Law 10 thousand 30 years ago..and it seemed huge to us then. You know, we took the bus to work, had one car for years...now loans for law and med careers are much more magnified, heavy burdens for students to carry into a dicey work place.
Be conservative and realistic when you get your news and options in April.<br>
Oh..and I also assumed I could get a job easily when I felt like it...in our town, everything is in crisis mode and jobs are lost in every sector...
Seriously, recognize the economy will not come back fast. If you can't use home equity, talk to the financial aide offices about the Staffords and if your daughter can assume those or not on graduation.<br>
I wish her well, and hope she is admitted to a school that uses grants instead of loans.</p>
<p>Some savings, some current income, some parent loans.
Son signed for maximum Stafford loans and just graduated with approx 18K total debt.
Not too much for a wonderful shiny new bachelor's degree! He will be able to manage that level of debt. I shudder when I hear of new graduates with loans up to 100K.</p>
<p>Son applied to 6 schools and turned down his first choice due to finances.
We have about 14K left to pay in students loans that we signed for in our name for him.</p>
<p>Each family finds their own comfort level. My best wishes to you!</p>
<p>You have been fortunate to be able to stay at home, not many in our generation have been able to manage that situation financially. Although my husband and I were both born in the 50s, we both had working mothers (and working fathers). While highly unusual for our generation to have 2 working parents, we felt we turned out "OK" so we figured our children would turn out "OK." Twenty years ago our finanical advisor told us we would need a minimum of $20,000 a year to put our kids through a state school when they turned of age and lo and behold he was darn close in the projections. Twenty years ago a quarter of a million for the kids' education felt quite outrageous! But it meant that both my husband and I would need to work if we wanted a house, kids, retirement income, and college educations for the kids. You have gotten good advice from many so far and I would add, it appears from your name that you are in California. I have read many posts regarding the excellent city colleges with guaranteed transfers into the UCs in California, which as you know, are highly regarded across the country. Seems that as you come up with different options and scenarios that could be one of the scenarios. Also as you probably know from your other children, your daughter could use savings from her job, if she has one, and Stafford loans to get the ball rolling. I just finished one of my boys taxes and I can't believe how much $$ they can pull down with part time jobs and summer employment and they don't work all that much during the school year because of sports and "stuff."</p>
<p>you should be thankful you didn't take the equity out and spend the money and then have your house value drop. Better to lose equity 'on paper' that you didn't spend. that is something ALOT of people are learning the hard way.</p>
<p>I was born in the 50s too. When X wanted a divorce, all I fought for was Ds college expenses and % of pension. No alimony and no Child support. So I live simply. Do I resent that Dads new eye candy doesnt work outside the home (and btw nokids)? Yes. Do I think my D is OK with my working outside the home (and btw, every mother is a working woman)? Yes. Could I have fought for alimony and lived better now? Yes.</p>
<p>Oh, if my words were interpreted to mean I don't respect the OPs choice to stay home, I do believe every mother is a working mother and I respect her choice. We all (or we probably wouldn't be reading these forums) were at a point in time where we made The Choice.</p>
<p>Oh Gosh...I really need to clarify some things I said in my "rant"...
I know fully well that all moms are "working" moms and I in no way meant to insult ANY families out there with 2 hard working parents. In Southern California I see so many many families that want and insist on living the "high life" at the expense of the time they spend with there children. That is truly sad and usually their children have no desire to even go off to college. The fact that there are so many wonderful parents on this website, struggling, wondering and investigating ways to help put their well deserved children through college is such a blessing to see. </p>
<p>I know there are many wonderful loving families out there with 1 AND 2 working parents that are fully engaged in their children!
I apologize if I implied otherwise. :)</p>
<p>Thank you all for the advice.</p>
<p>What may I ask is the difference between Stafford unsubsidized and subsidized loans and which are better to take out?
Thanks again!</p>