<p>Congrats, and I am thrilled for you. But believe me, that $5500 is not a ONLY. If it takes you 4 years to get your degree, we are talking close to $30K in interest in loans at close to 7% interest. You can get some mighty fine wheels for that. But it is doable, and if you stick to your major, paying them back should work out. Again, congratulations.</p>
<p>I am so excited for you jay520! That is wonderful news. So glad Michigan was able to fix this and it is affordable.</p>
<p>Cptofthehouse, my kids took out their maximum stafford loans. Their payments are less than $300 a month. I know because we are paying them as a present for graduating and it was less that we had to come up with at the time. But if they did have to, paying these loans would not be a hardship at all. Both kids are able to pay their living expenses, able to live alone, one kid bought a new car, they are able to live a very nice life, contribute to their retirement and save a considerable amount. So it can be done.</p>
<p>Good luck Jay, I wish you great success.</p>
<p>Absolutely, it can be done, but bear in mind that you and your husband are actively helping your children. Even if you did not pay off their loans, you are there with even a little bit extra. My kids are struggling even without student loans. Most graduates have a hard time finding a job that pays a good living wage. Yes, even the engineers and computer scientists don’t always find something right away. It’s wonderful when it works out; it’s terrible when it does not, especially when there is no help to be had from family. I am seeing this with a number of my kids’ friends and my friends’ kids.</p>
<p>Actually, the $5,500 in loans is before considering income from summer employment or the $5,000 per year (for 2 years) CC transfer scholarship that they offered me earlier.</p>
<p>I’m thinking about declining the CC scholarship though. The scholarship is only available to 4 students and I clearly don’t need the money - summer employment with a minimum wage job plus a tiny bit from savings should keep my loans well under $2,000 per year easily. At most, total loans would be at around $10,000. I figure the money would be better used for another student who really needs it. What do you guys think?</p>
<p>Most importantly though… if I do accept this CC transfer scholarship, once I report it to FA, wouldn’t they likely lower their grant aid to compensate for the extra $5,000 so my aid doesn’t exceed my expenses? If that’s the case, my condition would actually be the same regardless of if I accept this scholarship or not. Wouldn’t it be unquestionably better if I gave it to some other kid who may have a larger gap, rather than myself using to replace aid that I would already get?</p>
<p>I will talk to FA to see about the specifics.</p>
<p>It’s generous of you, but I’d hold on to it because things happen. But I’m a selfish sort , and I’m advising you as I would my own kids. </p>
<p>The CC transfer scholarship will likely replace your loans first, but you do have to look on the UMichigan website and see how the school does apply the award. If it does simply replace your award, I would decline the scholarship so that someone else can benefit that is not as fortunate as you. But if it will reduce the loans you have to take, go on ahead a take the award unless you feel strongly about not doing so.</p>
<p>Again, congrats. UMich is a great school and worth every bit of taking out the full Staffords.</p>