<p>This may be somewhere on CC, but I can't locate it. My S has both a subsidized Stafford Loan and a Perkins Loan for last year. This year he was awarded a subsidized Stafford Loan. This combined with University Grants, University and Alumni Awards and Work Study still leave him shy of meeting expenses. The award package falls short of leaving the only our EFC to pay. So the obligation for him is EFC plus more. Our EFC is ridiculous, which I'm sure most of you agree. (How do they figure those numbers?). So what are a students options for loans (reasonable interest, hopefully deferred interest) without a parents cosign? The PLUS loan for parents is basically a normal loan with interest occuring immediately and payment do immediately, not the way I or my H want to finance an education. So...
Thanks for any help provided.</p>
<p>Uh,</p>
<p>If I am reading your post correctly you are saying...</p>
<p>My young adult child got a fin aid package consisting of a multitude of things, however, everything pertaining to tuition and the like has not been covered in full.</p>
<p>Uh, </p>
<p>I would think of speaking with the fin aid folks at the school. </p>
<p>This makes me wonder...</p>
<p>
[quote]
This year he was awarded a subsidized Stafford Loan. This combined with University Grants, University and Alumni Awards and Work Study still leave him shy of meeting expenses.
[/quote]
</p>
<p>See, it is like I read that and think that maybe your young adult child got a fair deal. But, that maybe you and your family making up what difference there is might be hard. </p>
<p>So, I reckon you folks should speak with the fin aid folks of the school in question. And also, ask about deferred payment plans. Those deferred payment plans can sometimes be okay.</p>
<p>Honestly the EFC is by far the most accurate algorithm i have ever seen. I know from my family's experience the EFC was dead on to the dollar of my parents disposable income. You just live beyond your means like most Americans.</p>
<p>You problem is in the pst 2-3 years, schools stopped allowing students to take Unsub Stafford loans if they really didn't need it. They can screen this by allowing the parent to apply for a PLUS loan. If you are approved for a plus loan, then well maybe you should take it for your son. If you arent due to bad credit and past Bankruptcies, then take the Unsub Stafford.
If you dont have bad credit and just cant have the liability of the PLUS loan. tell your son to call or go to his school, sit with a adviser and tell them that you the parent refuse to help with his education. let it be know, that if your son doesn't get this extra loan, he will just drop out of school. Most advisor's are sympathetic to the needs of students. So you may get that Unsub Stafford loan.</p>
<p>Hope that helps.</p>
<p>Typically, unless there are additional school based sources of funding, a parent refusing to take out a Parent PLUS loan has little chance of increasing the child's financial aid package. For dependent students, Parent PLUS loans really are not optional, unless the parents have liquid assets to pay out of pocket or they choose to take out private loans.</p>
<p>Hrtz,</p>
<p>Schools do not make the decision as to whether the student needs or doesn't need the Unsub portion. For dependent students, the Parent PLUS Loan is a requirement....the school has no discrepancy to offer additional Unsub money instead of PLUS loans unless the parent's PLUS loan has been denied. And throwing a "temper-tantrum" about my kid will have to withdraw unless he is given the unsub portion of aid will not result in him automatically being given it. In this situation, the student is a dependent student....therefore, he or she is not eligible for the Unsub portion unless the parent's are denied. Again, this is not an area that the school decides....it is federal regulations.</p>
<p>I cannot tell you how many students have had to withdraw from my school and go to a cheaper institution because their parent's refuse to even try for the PLUS Loan. Refusal, while disheartening and truly punishes the child, isn't sufficient grounds to modify the award package per Federal Regulations.</p>
<p>My EFC is 40% of my Net take home pay Or 23% of my AGI</p>
<p>I could NEVER pay it out of my week to week salary.</p>
<p>I'm sure they expect me to pay it out of my savings. Without the savings, I'd have to take out a loan (of course my EFC might be lower)</p>
<p>
[quote]
**If a student's parents are denied a PLUS loan, or the college financial aid administrator determines that the parents are likely to be denied a PLUS loan, the student becomes eligible for increased Stafford Loan limits. Only one parent needs to apply for and be denied a PLUS loan. However, if one parent is denied a PLUS loan and the other is approved for a PLUS loan, the student is not eligible for increased Stafford Loan limits.</p>
<p>You may use the Lender Codes Database to obtain the lender codes of parent loan providers. FinAid also maintains a list of education lenders who offer federal and private education loans, including PLUS loans.</p>
<p>Lenders may allow parents to defer payments on the PLUS loan while the student is in school by granting one of several types of forbearances. In each case the forbearance allows a full or partial suspension of payments for up to a year at a time. Interest continues to accrue during the forbearance even if payments of interest are suspended, but is usually capitalized only at the end of the forbearance. The discretionary forbearance can be renewed each year; the economic hardship deferment and excess debt burden forbearances each have a three-year time limit.
[/quote]
**
<a href="http://www.finaid.org/loans/parentloan.phtml%5B/url%5D">http://www.finaid.org/loans/parentloan.phtml</a></p>
<p>In other areas I have read that the amount is up to $4000.</p>
<p>
[quote]
**Since July 1, 1994 there have been additional aggregate unsubsidized Stafford loan limits for independent undergradate students, dependent undergradate students whose parents were denied a PLUS loan, and graduate students. The additional aggregate limits for unsubsidized Stafford loans were $23,000 for undergraduate students (independent students and dependent students whose parents were denied a PLUS loan) and $73,000 for graduate students, bringing the combined aggregate limits to $46,000 and $138,500.
[/quote]
**</p>
<p>As I read this, I think the first thing to do is have your student do an unsubsidized Stafford loan. This is an automatic approval, no credit check or co-signer, does not depend on family income.
If that is not enough, apply for a Plus loan and use that.
If denied for a Plus, take more Stafford.</p>
<p>quote from NikkiiL:</p>
<p>I cannot tell you how many students have had to withdraw from my school and go to a cheaper institution because their parent's refuse to even try for the PLUS Loan. Refusal, while disheartening and truly punishes the child, isn't sufficient grounds to modify the award package per Federal Regulations.</p>
<p>My S is at George Washington University, a very costly school. I'm sorry, he may have to drop out as he exhausted all college funds that were put away for him in order to attend his freshman year and this coming semester; that was approximately $44,000 in addition to his financial aid package. He knew there was not enough funds for him to complete 4 years even with his financial aid package. If we apply for a plus loan, it inceases our debit ratio and doesn't allow us to continue to put money away for him to attend school or into our retirement accounts. Yes, he has had opportunities of a life time; but an undergraduate education as costly as GW is not realistic. The rich can afford, because they just pay and the poorest of the poor get it all covered. He's a good, hard working student but there just isn't the funds for a "middle class" student to attend such a college, whether that be federal funds, school funds or our funds. He is by no means being "punished" if he has to drop out. It was a decision he made to attend the school knowing resources were finite. He is receiving work study, University Grant, alumni and university awards, sub. Stafford loan. The only option I can find is the PLUS loan, which is basically a regular loan. I will research the unsub. Stafford loans as a possibility. I appreciate everyones responses and suggestions.</p>
<p>NikkiiL</p>
<p>I always got around the Plus loans when I was in school. By the same way I described. above.</p>
<p>hrtz,</p>
<p>While with the current scrutiny that financial aid offices are under thanks to Cuomo, I doubt it woulod work today. Especially since the Department of Education has recently come out with clarifications which make it more difficult for a school to overlook parental refusal to apply for the PLUS loan. Also, you may have been dealing with rookie Financial Aid Officers who do not scrutinize the FAFSA application and caught common "errors" which make dependent students look independent. </p>
<p>GW,</p>
<p>I am sorry that your child is having such a difficult time, and I am sure he deserves the great education that is available at his current school. However, as a parent of a rising college student, I am awestruck. I have already laid down severe groundrules for both of my children regarding the cost of their college education. While I want them to be ableto attend the best college or university available, I have told them I will not go into debt so they can have a fancy school on their degree. I know you are trying to do the best for your child, and I am in no way critizing this...but I do think that parents need to put their foot down when it comes to the cost of their child's education: Parent's need to make their children attend schools that are within their means, not schools which will put everyone into severe debt.</p>
<p>My son took down unsubsidized Stafford money when things got tight. I hope that will be enough for your son.
Plus was not an option for us because we are not young parents (in our 50s), have a daughter starting college next month, and an 11 year old yet to come!
I don't recommend Plus loans for everybody.
I think the student population at George Washington is by reputation very, very affluent. An attractive school for many without an endowment to speak of.
A transfer may have to happen. What is your home state? How is your son's academic performance?
I am sympathetic to your situation.</p>
<p>Quote from NikkiiL
"I am sorry that your child is having such a difficult time, and I am sure he deserves the great education that is available at his current school. However, as a parent of a rising college student, I am awestruck."</p>
<p>I apoligize if I misread your first post about "truly punishes the child" when a parent refuses to take out a plus loan. My response to those comments were that we had "laid down the law" as such and that he was making a decision knowing the possible end result. If I'm reading your responses correctly they are somewhat condradictory in that you feel it is punishing a child if there parent refuses to take out a plus loan yet you also say that you will not go into debt "so they can have a fancy school on their degree" That is exactly what I'm doing... again, I'm not trying to offend, I'm just not sure I'm understanding correctly.</p>
<p>To those that offered the suggestions of FAFSA and unsubsidized Stafford Loans. The first post describes is financial aid awards for last year and this year. He received the total amount allowed this year for a Stafford Loan, in the form of a subsizdized loan and therefore can not apply or request a subsidized Stafford.
The true issue here is the expense of his school combined with a what I feel is an unreasonable EFC and that the student loan process/availablity is more about "consumer type loans" for parents. Something has serious changed in the student loan arena that doesn't allow for those that were available years ago...
Again, thanks for all your responses and suggestions.</p>
<p>GW,</p>
<p>When I said refusing for the Parent PLUS loan, I meant even trying to take out a PLUS loan in a reasonable dollar amount. I have many students each year who would only need Parent PLUS loans of about 2k to 4k to have 100% of their tuition met. Their parents have either flat out refused to complete the Parent portion of the FAFSA (which means they don't qualify for any federal funding) or refuse to even complete the Pre-Approval process for the PLUS loan. Sometimes, the excuse is "I know I won't qualify for the PLUS loan, so why bother." Even when I explain that a denial would benefit the student, they still refuse.</p>
<p>When my children begin the college application process, I will, without hesitation, complete my portion of the FAFSA. I will also complete the pre-approval process for the PLUS loan. If approved, and the necessary gap is reasonable, I might take out the Parent PLUS loan. But, I am also in a very different situation. I work in FA at a small, private LAC which provides 100% free tuition to my dependents. I cannot see taking out large PLUS loans when I can cover their educational costs for no out-of-pocket expensive.</p>
<p>gwfreshmom – you are not alone.</p>
<p>there are signature loans for students w/o parental co-signing...but the interest rates and origination fees are frightening. </p>
<p>This is the only place I've seen phone numbers and such - <a href="http://admissions.american.edu/fileLibrary/AlternativeLoan.pdf%5B/url%5D">http://admissions.american.edu/fileLibrary/AlternativeLoan.pdf</a></p>
<p>Check out the posts by Stocksdale111 in the American U section – he or she just transferred from GWU to AU for financial reasons.
<a href="http://talk.collegeconfidential.com/showthread.php?t=360607%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=360607</a>
<a href="http://talk.collegeconfidential.com/showthread.php?t=312417%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=312417</a></p>
<p>The good part about having completed a year at GW is that his credits will be highly regarded and he will be in a stronger position as a potential transfer. He may find himself more competitive for $ at another school than if he had not attended GW. Like the student poster above – he might want to try for a better FA package in another D.C. area school, or try another good private LAC that is listed as meeting 90-100% demonstrated need so as a family you can concentrate on the EFC instead of the “gap”.</p>
<p>And please don’t let transferring be negative – transferring is not “dropping out” – if your S can approach transferring positively and as a smart, strategic move – he might even be pleasantly surprised and find himself in a better situation. </p>
<p>With the current volatility in the credit market, forclosurures and lending crunch...as well as the student loan market inquiries going on - I'm not so sure NOW is a good time to be taking out large alternative loans or large PLUS loans...at least not when you take the loan and then have to repeat it x 3 to cover the next 3 years. </p>
<p>Wish your S the best, must be a strong student to have gotten into GW.</p>