<p>Hi! I have just recently decided to become a part of the University of Rochester's class of 2013! Now its time to figure out how im going to pay for it...</p>
<p>I recieved my financial aid package and even with a merit scholarship, grants, loans, and work study oppurtunity im still about 20k short =[</p>
<p>Ironically (or perhaps not at all) that is about the amount my parents have saved for me in my college fund. Ive been thinking about the best thing to do in this situation and was wondering if it was smart to use all this money the first year (a hearbreaking idea to my parents who have been saving my whole life). This would mean i would not need to take any outside loans other than the ones being provided for me through U of R. </p>
<p>The other option would be to use a little each year and borrow the neccesary balance each year.</p>
<p>There are a couple of reasons why i think its best to use it all at once. First of all my younger brother will be going to college in 2 years so my financial aid should go down at that time if my understanding of the fafsa is right. I also would no longer have to claim the 20k on the fafsa which i did have to this year...lowering my efc? Finnally it would be one less year for my unsubstidized loans to be gathering interest.</p>
<p>Using it all the first year makes the most sense to me but my understanding of all this stuff is admittingly limited. Im just trying to figure out the best action for my situation...any advice will be appreciated! =]</p>
<p>You would be better off using it the first year so that your EFC goes down. While Rochester meets need, how your brother will impact EFC later will hinge on whether he also attends a college that meets 100% of need.</p>
<p>While Rochester meets need, they do so with 26% being loans and work study which is pretty hefty. Taking massive loans on top of that sounds pretty crippling. With expected increases it sounds like your having debt in the $70K range is possible. Will this all be your debt or will your parent’s help?</p>
<p>My parents are offering the 20k and im trying to convince them to co-sign some of the loans to get a better rate but in the end its going to be all me</p>
<p>never turn down any Subsidized loans (stafford/perkins). No interest accrues while you are in school.</p>
<p>that said, whatever you think it will cost, it will be more. And it will increase for each year. If you are 20K short this year, it could be 23K, then 25K, then 28K short. Using up your college fund of 20K isn’t going to make that big a difference in your EFC. If this money is in your name (which is hopefully isn’t) the MOST it would have been assessed for Fafsa is 20% or 4K. If the money is an asset of the parent the MOST it would be assessed is at about 6% or 1200 and that’s only if your parents had more than the asset protection allowance for their age.</p>
<p>PLEASE rethink your decision to take on 80K of debt for school. NOT a smart thing to do for most people</p>
<p>My suggestion is to take the max sub & unsub each year and supplement with your parents’ money. Have them put the extra into a CD that will come due as tuition comes due - they can reinvest what they don’t use in another CD. I say this because you can only borrow a certain amount each year in Stafford loans (5500/6500/7500 for fr/soph/jr-sr). If you tap out the savings, you will come up short in future years & have to borrow an alternative loan at a higher rate. Something to consider.</p>
<p>Plus, just because you will have 2 in college doesn’t guarantee URochester will increase your aid accordingly.</p>
<p>I would start spending down that $20K even if it is in paying your parents back for something so that the money is not in your name sitting there where it gets a 20% hit vs about 5% if it’s in your parent’s name. I also think Kelsmom’s advice is excellent.</p>