I just got my Financial Aid package-help me clarify please!

<p>Your Estimated Cost of Attendance (Financial Aid Budget): $39,808.00 </p>

<p>Please note: this budget is preliminary until the MSU Board of Trustees sets tuition rates for 2010-2011.</p>

<p>AID ID AID PROGRAM FALL SPRING SUMMER TOTAL
1105R University Scholars Awrd $1,000.00 $1,000.00 $2,000.00<br>
9PEK FED Perkins Loan $850.00 $850.00 $1,700.00<br>
9PEL FED Pell Grant $1,250.00 $1,250.00 $2,500.00<br>
9PL1 FED Parent Loan (PLUS) $12,554.00 $12,554.00 $25,108.00<br>
FS21 FED Direct Subsidized Ln $1,750.00 $1,750.00 $3,500.00<br>
FU21 FED Direct Unsub Loan $1,000.00 $1,000.00 $2,000.00<br>
WORK Student Employment $1,500.00 $1,500.00 $3,000.00 </p>

<p>So- this is what I received today from MSU.
Am I correct that my Mom is expected to take out a Parent Loan(PLUS) for $25,108?
I just want to be sure I am reading this right.
If so-do I write to the Financial Aid office and appeal for more funds?
I am out of state-but we are trying to move to Michigan to try and get established as in-state residents ASAP.
Thanks in advance for your help.</p>

<p>That’s a lot of loans. $25108 for your Mom, $7200 for you.</p>

<p>Crap-that’s what I thought.
One question about how loans work…
say we did take out all of these loans…how do they get paid back?
Monthly? Quarterly? How long are the loans taken out for? Do they have to all be paid back by the end of the year?</p>

<p>First I would strongly recommend against taking out such high loans. That is way to much loans for one year of college. In fact $32,000 in loans is a lot of undergrad debt and it will probably not be all the debt you end up with. Even if you manage to become instate for the second year you will still have those loans to repay plus probably some more for the remaining years of college.</p>

<p>Wow - that is eye opening - for someone who is eligible to get a Pell grant and then only receive basically $2,000 from the University - OUCH!!!</p>

<p>Some states do not allow you to establish residency while attending college.
Yes you are correct about the loans.
Not sure about appealing for more funds, didn’t know one could. I say keep looking at MSU if you like the school but if you can not afford the loans make sure you have affordable schools.</p>

<p>Yes, that is more in loans for just one year than would be advisable for FOUR years! That’s a terrible aid package.</p>

<p>Coolbreeze said something very important – that some state schools won’t let you switch to in-state status if you start as a freshman with out-of-state status. Do you have an in-state university you could attend? Or else if you’re dead set on Michigan, perhaps do a year at a local community college and then transfer to Michigan once you’re moved and established residency there, or else take a year off before starting college and in that time get yourselves settled in MI.</p>

<p>Yikes, Michigan State is getting expensive for out of state kids and MSU was not much help to the OP either. OP do you have an in-state school to attend? If your mom moves to Michigan you might try a CC local to where she is settling then transfer. If you take a year off and your mom moves to Michigan do check with MSU to see whether you would be considered in state or if you would still be considered out of state.</p>

<p>Codymann67: This is a university that you’re qualified to attend, but it is not a university that wants you. Loans of $32,000 per year are ridiculous for almost any family, but for a family eligible for a Pell grant they’re ludicrous. My guess is that your mom probably wouldn’t even be able to get PLUS loans to that degree given the income requirements for a Pell grant award. Worse, as tuition and fees go up each year, you’ll probably be expected to take out more in loans each year.</p>

<p>Please look elsewhere. This is a truly terrible financial aid offer – it may be the best MSU can do for you as an out-of-state student, but it is not worth even trying to mortgage your future with debts like these.</p>

<p>Please dont do this to yourself. This package is atrocious!</p>

<p>I too am surprised at the loans they expect you (and your Mom) to take out when you are Pell eligible! Please heed the advice of others, and do NOT accept this loan package, there are other, cheaper and smarter options! I’m so glad you are asking questions though!</p>

<p>Thank you all so much for your advice and help. I appreciate it.
I do not want to be in debt or put my mom in debt, so it will be on
to plan b-community college. MSU was my first choice and I also got accepted to Purdue, Indiana, and Marquette-but I don’t expect anything better financially from any of them.
I really thought having a single mom and EFC of 3055 that we wouldn’t have had such a high out of pocket cost. This was a real eye-opener.</p>

<p>But what state are you currently living in?
Marquette is a private university so your aid may be more affordable that MSU’s.</p>

<p>Okay so your from Arizona, I would suggest applying to University of Arizona and Arizona State University as both have rolling admission. I myself applied to University of Arizona and was admitted.</p>

<p>I think a lot of people make the mistake of thinking a low EFC means tons of aid and low out of pocket expenses. Unless it is a schools that promises to meet full need without loans (rare) this is not usually the case. Most state schools do not promise to meet full need even for their instate students, let alone OOS. </p>

<p>I am so glad you are sensible enough to realize this debt would be a horrible idea. You will be so glad not to be drowning in debt in 4 years time. Good luck!</p>

<p>I did get accepted to U of A and ASU, but I’d rather save the money and go to a community college then transfer out of state.
Again-thanks for all of your help.</p>

<p>I hope lots of people see this thread, especially those who mistakenly think that families with low EFC’s get a free ride when it comes to paying for college.</p>

<p>Just not true, as this aid package shows. BTW, I’ve seen lots of aid packages quite similar to this for families that have low incomes.</p>

<p>There is no free lunch.</p>

<p>Out of state publics often do NOT give their own aid to OOS students. That’s why this student was only given federal aid…not Mich St aid. That is what the problem here is. If this student had been a Mich res, he would have likely been given aid. I know it sounds harsh, but if OOS publics covered their OOS fees with aid, what would be the point of charging OOS fees? </p>

<p>Where else did you apply? You obviously cannot afford this school. You’ve been given an “admit/deny” package. Frankly, publics should be a bit more upfront with OOS students so that they don’t waste money applying. Obviously, a Pell recipient family can’t afford such loans.</p>

<p>Some publics do not even have money of their own to award as grant money. For instance our State Us offer merit money and federal money. They do not offer any institutional grant money at all. Without the merit scholarship my daughter has she would be well short of having need met as an instate student.</p>

<p>I did get accepted to U of A and ASU, but I’d rather save the money and go to a community college then transfer out of state</p>

<p>The problem is that in future years, your aid packages won’t likely be any better. Don’t apply to any more OOS publics…unless they are one of the very FEW that meet need for OOS students. </p>

<p>What is your aid package for UAz and ASU? It may not be more expensive than a CC. And, it will be more of a full college experience.</p>

<p>swimcat quote: Some publics do not even have money of their own to award as grant money. For instance our State Us offer merit money and federal money.</p>

<p>Very good point - which is why OOS students should not expect good aid packages - even if their EFCs are low. OOS COA’s are high, and fed aid doesn’t often cover even half of it. It may seem harsh, but OOS students need to ask themselves, “Why would a state school give me tens of thousands to attend their school? Don’t they have their own residents who have need?”</p>

<p>I think the only school that I can think of that may offer full need to OOS students is University of Virginia. My son was accepted there last year and the package was full need.</p>

<p>The best advice is to look at all the financial packages you receive and then determine which offer is the best.</p>