How to pay?

Paying for College
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<p>How does everyone do it? My household income is $87,000 and we are a family of 4. I will be the only one in college next year. My parents didn't think to save some money up for me and can only contribute $4,000 a year. They have no home equity to tap into and are actually $65,000 in debt. Most of the colleges I applied to are between $21,000 to $27,000 a year including tuition, room, board. I also applied to two state that are $13,000 a year, but even that seems unobtainable. How much aid do you think I'll receive? I can't possibly take out this many loans and survive when I graduate. </p>

<p>Thanks.</p>

2

<p>How do you pay? You apply to colleges that you can afford, which may mean living at home and commuting, including starting off at a 2-year college.</p>

<p>Most of the colleges that are extremely generous with aid for low income students are also some of the most difficult colleges to gain admission to in the country -- places like Harvard and Princeton. If you don't have the stats to get into such places, you'll need to do with most people do -- go to a college close to home.</p>

<p>Also, prepare to take out loans, but I don't suggest taking out more than a total of $20,000 for four years. That also is the average amount that most college students take out.</p>

<p>In state public schools often have merit scholarships for high stat students. They also may have merit aid for students planning on majoring in fields like nursing that the state has a shortage of professionals in. Since you're planning on majoring in that, check your public colleges including the two-year ones to see if you qualify for merit scholarship aid.</p>

<p>State universities usually can't cover 100% of students' documented financial need because public universities lack the large financial resources that places like Harvard have. Often financial aid goes to the needy people who apply the earliest, and even they may get only 60-70% of the aid that they need. The aid packages that they get also may be very heavy on loans.</p>

<p>Look locally for scholarships, too. Check your guidance office as there probably are local organizations that want to give scholarships to local students.</p>

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<p>NSTM is right. It isn't going o be easy. Hopefully, you have something saved from work. It would be wise to use that for expenses this year, and have your parents bank the corresponding amount so that it won't be assessed at the whopping 30-something % that the students get hit with. It may be a good idea for you to start a part time job, and step it up during the summer. My oldest worked 80 hours a week during the summer and accrued quite a bit of money that way. That with the $4k your parents can give you can make a good dent in the $13k cost. Then there are the loans your parents AND you can come up with. Throw in a job during the year, and it just might be doable. Not easy, but doable. And if you are away from home, there are some corresponding savings from the household expenses. Those should be put into an account to go towards the next year's college expenses. You should also be nosing around for some local scholarships and looking for some schools where merit aid is a possibility.</p>

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<p>Sorry to make you so angry Northstar, we aren't all forunate. I am wondering about financial aid from these universities though. I hear that a private one can sometimes end up costing less than a public. I am eligible for many full-paid scholarships that are provided by my dad's employer, so I'm hoping for one of those. Otherwise, I have been offered $5,000 a year right off the bat for schools that are $20,000+ so I'd have to see if they offered me anything else. Like you guys said, public usually lack aid so that could be a problem. I already have a job, but with school and all of my extracurriculars I can only work so much and still have time to sleep. I only make $5.15 an hour and probably have enough money saved for my books next year. Regarding the average student taking out $20,000 in loans, are you sure that isn't just federal loans? I know quite a few people who are taking out between $60,000 to $100,000 to go to schools like PSU and Pitt! I'd like to try to avoid putting myself in that much debt, but only so much of it is in my hands...</p>

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<p>What's your estimated EFC? I'd guess it's about $15,000 or less, assuming you and your siblings are broke - if not, you all better be, as those assets will be assessed at 20%/yr. You also need to be aware that for every dollar you earn over $3,000, you'll lose 50 cents in financial aid/yr. I'm also assuming your parents have minimal investments, and no real estate other than your home. The truth of the matter is that a private college won't "cost" any more than a state school. Don't cheap out on a once in a lifetime opportunity. Some of the money you'll have to borrow will be 0% for 4 1/2 years. How can you beat that? Paying for college is the easy part, you can borrow the money, but all the financial aid in the world is useless without that coveted admission ticket! Strive for the best school - at no additional cost! NEVER cheap out and commute - never!</p>

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<p>Thanks Reecy. Like I said, my parents say they are $65,000 in debt all together and the house is only like worth like $90,000 and not paid off. Our household income was MUCH lower than this until about 3 years ago. Probably about half of what it is now... My sibling and I are completely broke so that's no worry, lol. My parents have no assets, investments, etc.</p>

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<p>maura423 -- have you sat down with your parents and run the financial aid calculators to see what the efc would be? there are several websites out there .. I like this one <a href="http://www.finaid.org/calculators/%5B/url%5D"&gt;http://www.finaid.org/calculators/&lt;/a&gt;&lt;/p>

<p>You can get an idea on what your EFC would be calculated both using the Federal Methodology (FAFSA) and the Institutional Methodology (Profile). </p>

<p>Once you have some hard numbers in front of you, you can have a good conversation with your parents. Ask them -- what do they mean by $4,000? Is that what they will pay per year? Will they give you a little money each month or week? What about clothes, health insurance, transportation money? Are they willing to pay any more?</p>

<p>Once you have really pinned them down on the details, you have a better idea of the whole picture. I put your figures (no home equity, dad making 87000 per year, 4 in family 1 in college) into the calculator and came back with an EFC of $17,000. You can play around with the numbers in the calculator -- and you don't have to have all the figures to get an answer.</p>

<p>You have to understand that $87,000 is actually alot of money. You parents made the decision on how to spend their money. I am surprised that they only agreed to pay $4,000 per year for you considering the amount of money they are bringing home. You might sit down and figure out how much they spent on you this year (clothes, lessons, college applications, books, magazine subscriptions, summer programs, gym, etc). If you showed them the amount of money they will be saving, they might agree to pay some more.</p>

<p>I totally agree with Northstarmom -- keep your loans low! I have personal experience with this and I think that Reecy is way off base when he tells you to reach for the stars. What you are doing is mortgaging your future when you have alot of student loans. I can guarantee you that people you know that are taking out such large loans will truly regret it! Ask your parents how they feel having loans of $65,000 -- I can guarantee that your lifestyle is different because of it. Imagine if you took out just $60,000 in student loans and then met the man of your dreams -- who also has $60,000 in loans. now you are a married couple with $120,000 in student loans. Just out of college and new to the job market, how much do you think you will make? Let's say you both get full-time decent jobs each making $35,000 per year (this is taking into account that you didn't go to grad school and incur more debt). So you make $70,000 per year between you. take out taxes and living expenses (being very frugal) and all extra money will go toward paying that student loan debt. For 10 years or more! It isn't worth it to go to a slightly better name school.</p>

<p>Education is what you make of it. go to a school that you can afford, work hard to be involved and do well and make the best of it -- be the top person in your department. spend the time making connections and working towards getting a good paying job.</p>

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<p>Thanks for the reply! That's the issue though, I know $87,000 is a good income, but that income has ONLY existed for my family for a few years. Like I said, prior to that their income was more like $43,000 a year. Is there any way we can state that? I'm sure if their income had been $87,000 for the past 18 years, they would've saved more. They will give $4,000 a year towards tuition costs, and will also provide me with the spending money for things like clothes and I have health insurance so those aren't issues. They paid my brother's college tuition, room, board, but said they can't do it for me too. There's another issue, my health, so much of their income goes towards my medications, procedures, etc., even though we do have health insurance it isn't the best. That's why I'd like to stay close to home because it's tough to tell when I'll be in the hospital again.</p>

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<p>You can tell the schools about your health bills, if you can prove that your family is paying them. If the debt can be shown to be health related, I think that this might be taken into consideration. They really don't care if your parents have past debt otherwise, b/c these are lifestyle choices. They don't seem to care if you income was lower in past, or might be in the future.</p>

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<p>No, maura, you cannot turn back the hands of time for your financial aid or anything. 87k a year is, in certain parts of the country, a really fair amount of money for a family of four. So, you have to do as some of the other posters have stated and play around with the numbers on the efc calculators and present a game plan to your parents and all. </p>

<p>Now, 4k will buy you some fine Community College schooling. Have you thought in those terms at all? 4k is almost the average cost of a fair amount of Community Colleges. If you wanted to, you could do that, and earn one of those AA or AS degrees which are instantly transferable to a fair amount of Universities. You can research that by making sure your Community College has an articulation agreement with some Universities, and the odds are that they do. Doing the Community College, earning a AA or AS, and then transferring- saves you half the cost of a four year degree right there. </p>

<p>There are options out there for you. You just have to be patient and continue to see what you can do.</p>

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<p>Community College here doesn't have the major I want and even then it'd be difficult because I don't have a car or insurance. Infact, I don't drive period b/c of health reasons. That's why I'm looking at a traditional option. We would definitely be able to show those medical bills. Northeastmom, I'm not sure why you're being so mean, but me being sick IS NOT a lifestyle choice! I'd much rather have a normal life that's for sure.</p>

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<p>Northstarmom is not being mean; she is being realistic. </p>

<p>We don't know your stats. You may be able to qualify for merit based scholarships. Atypical medical expenses may affect your EFC. The key word is "may." It is best to look at the cold hard facts regarding costs as a starting point.</p>

<p>Feel free to post class rank, scores, ecs, etc. You will get an honest appraisal. It just may not be what you want to hear.</p>

<p>Two years at a community college followed by two years at a state school is always an option.</p>

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<p>Again,
I CANNOT drive, so there is no way for me to get to and from the community college or I'd go. I'm trying to be realistic as well, but if I don't drive then I don't drive. It just hurts me that every time I post something on these boards, I get really rude PMs from people. I already know which scholarships I'm eligible for, because the schools contacted me but it's just a waiting game from here... I'd like to close this thread please, thanks for those who helped, the two people that sent rude PMs I hope the good lord helps you.</p>

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<p>actually -- that makes it even more difficult to understand. Your parents lived on an income of $43,000. they managed to clothe and feed and shelter your family of 4 on that. I can understand how they managed to accumulate debt and why they don't have any home equity, but...they are now bringing home $44,000 more (well -- maybe $35,000 more after taxes). they have doubled their income and yet can't afford much for you to go to school? that just doesn't make sense. If they changed their lifestyle (vacation, big purchases, etc) with the additional money --- that was a choice they made and they could have chosen to use that money for college. If they are paying off debt --that is great. But again, that debt is significantly impacting your life -- debt is not good!</p>

<p>If medical bills take up a big chunk of change, you can talk to the financial aid people and you might get some adjustment on the EFC for that.</p>

<p>If they paid for you brother's college tuition and room and board -- is he out of school now? So they managed to pay his costs on the lower income? how did they do that? </p>

<p>You have alot of thinking to do -- you want to make the best choices for your future. do you have the stats to apply for scholarships or have you looked at colleges that award merit money for certain GPA or test scores? You may need to look a little lower as far as school rankings are concerned -- but you can be a star in the department.</p>

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<p>I've never been on a vacation in my entire life, neither have they. We've only traveled for medical reasons. My medical bills are paralyzing to my family and you guys can say it's my fault, but frankly, it's not. Like I said, please close this thread and even more so please stop PMing me, I will never visit this site again, some of you people must be psycho or something. To PM me and say my parents must be on drugs if absurd!!!!</p>

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<p>maura -- sorry, i cross-posted with the others.</p>

<p>no one is trying to be mean -- and no one said that being sick was a lifestyle choice. how the money is spent is a lifestyle choice.</p>

<p>If you have good stats, I think you will be able to do this if you spend you time and really do some research. </p>

<p>use the EFC calculator and have that long talk with your parents. Apply to a wide range of schools that meet financial aid that you can get into. You will be close if you work and your parents could come up with just a bit more. Your EFC will be adjusted if you have large medical bills. </p>

<p>It will work out -- just be realistic. Don't just aim for the sky, have a fall back position.</p>

<p>best of luck</p>

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<p>Thanks, you've given good advice. It just is very disappointing because I've worked very hard, haven't been able to attend a regular school for years due to medical reasons which meant poor attendance, and trust me, I've never gotten to travel and no one in my family has ever touched drugs. I've missed out on things like prom, football games, etc., so I just finally want to be able to feel 'normal'. I'm hoping college can be that time for me, but now it seems unaffordable. I just want to be in an environment with my peers, and even though I know it'll be a struggle some days, college is something I've always wanted to do.</p>

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<p>
[quote]
Community College here doesn't have the major I want and even then it'd be difficult because I don't have a car or insurance. Infact, I don't drive period b/c of health reasons.

[/quote]
</p>

<p>You can do all of your General Education requirements at a Community College. Does your city have public transportation? There are some cities which have curbside pickup (to and from wherever you need) for those who do not drive due to medical reasons or because of how they are quite elderly.</p>

<p>There are also online options at some Community Colleges. And, there is also like BYU online, that is a really legit way to knock out some classes on the cheap. I was just trying to help you. I mean, I used to have a two bus three in a half to four hour commute to and from University. So, that is one of those... where there is a will there is a way type of things. </p>

<p>
[quote]
It just hurts me that every time I post something on these boards, I get really rude PMs from people.

[/quote]
</p>

<p>I did not pm you. I actually had to report someone who pm-ed me in a really rude fashion (like more than a few times) to the mods. But, I have not a clue as to what follow up takes place with that at all. I am very sorry if someone hurt your feeelings through a pm, that is not a nice thing at all.</p>

<p>It is none of my business what is wrong with you health wise. But, you might desire to double check things over at ldonline.org or on the learning disabilities area of this site. You might wind up qualifying for a little guidance from a University due to the nature of your illness. It is worth a shot to check on that now. </p>

<p>I am assuming that you are not going to think me mean by this post?! I do not know. Again, I am sorry that someone pm-ed you in a mean fahsion, that is not cool.</p>

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<p>maura -- if you are getting offensive posts, you can report those. </p>

<p>You never said a word about medical costs in your original posts -- and the fact that the money goes to medical bills and not skiing vacations in Breckenridge -- does make a big difference! It will make a difference in financial aid that is awarded. </p>

<p>You are really on top of things -- considering finances before applying, talking with your parents, trying to get good advice. </p>

<p>Also -- does your health impact your ability to work? That is something else to mention to the Finacial aid people -- most expect the student to work and contribute that money, but your health may prevent that (or at least make it alot harder) and so they may make an adjustment for that.</p>

<p>Your strategy needs to be to apply for several schools and compare the financial aid packages. Be prepared to ask for a review after you recieve them. Have paperwork available with the amount of medical bills , travel for medical, etc. Also discuss your ability to work. Then, after the review -- again compare the financial aid packages. I think it will work out for you. I can't imagine that you parents would tell you "sorry, we can only afford $4,000 for school so you have to turn down that college that would cost us $5,000".</p>

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<p>stay postive -- we are rooting for you. I understand your desire to attend regular school -- and it would probably be good for you. </p>

<p>Just think hard about taking out alot of loans -- I hate to see kids saddled with those. It really is a big problem later on.</p>