So I was just admitted to Carnegie Mellon for Information Systems, and was Awarded 56 thousand dollars in total gift aid.
Here is the situation:
Year 1: COA: 70k
Gift Aid: -56K
Loans: -5.5 K
Work: 0
Parent Money - 6K
(Maxed out and
only for first year)
Unaccounted for: ~3k
Year 2: COA: 70K
Gift -56
Loan -6.5k
Work 2.5-3K
Parent -1k
Unaccounted for: 3-5K each recurring year
I cannot take out any cosigned loans because my parents will most likely be dead (parents are in late 70s) by the time I can hope to pay them off which means no bank will approve us. So literally with all options exhausted, its $3,000 that’s keeping from affording the number 2 ranked IS program in the country.
Are there any ideas as to what my options are ?
Note: (And don’t say take the full ride at the state school because I literally got rejected/undercut from all the state school merit aid I applied to, so I’m facing practically the same situation at schools that were supposed to be financial safeties)
What’s the work bit? Is that money you plan to make over the summer?
@bodangles It is work study combined with summer earnings (1-1.5k work study + 1-1.5 summer job)
Those loans in the pkg are not cosigned loans…they’re fed loans signed only by you
Again, those listed loans are YOUR federal loans…no co-signer needed.
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I cannot take out any cosigned loans because my parents will most likely be dead (parents are in late 70s) by the time I can hope to pay them off which means no bank will approve us. So literally with all options exhausted, its $3,000 that’s keeping from affording the number 2 ranked IS program in the country.
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However, your parents can take a Parent Plus loan for the parent contribution.
If your parent signs a Parent Plus loan (age doesn’t matter at all) and that parent dies, then the loan is automatically paid off.
I don’t mean to sound morbid, but strategically, if your parents wanted to take a federal parent plus loan out, the parent who is the least-healthy should be the one to take out the loan. (Sorry for how this sounds, but that would be the strategy. Personally, I hope for a longer life for both parents).
This might sound weird, but I know someone who started a GoFundMe site to collect a few thousand toward her college tuition. You can work over the summer(s) and make more than $3,000. You can work part-time during the academic year and make more than that. You can become an RA (resident advisor) at your college dorm and get free housing. You can sell things of value (like gold jewelry, e.g.) that you own. You can start a business of some sort selling products or services and make money (crafts on Etsy, tutoring services…). You can ask relatives for a loan/gift (grandparents, uncles, aunts, etc.). Seriously, $3,000 is nothing! Be creative and you can figure this out. My daughter works a low-paid job at a lab on campus part-time during academic year and full-time over the summer, and she makes about $10,000 a year that she uses toward spending money. You can do this! You can also keep applying for scholarships after you start your university. There are always new ones to discover and apply for.
You may be able to squeeze a little bit more out of the summer job if you work at a place like Walmart that pays more than the minimum wage (Walmart is $9/hr iirc). Won’t completely cover the gap but might help a bit.
I was going to suggest what Mom2CK pointed out - your parent (only one needs to do it) can take a Plus loan. They should plan on repaying it, but the monthly payments won’t be that large in 4-5 years, and of course you should be making good money by then and can help if the parent is still alive.
I don’t know why you have $0 for working the first year. It’s April - start working! You’ll at least have enough money to pay your books, transportation, set up money by the end of the summer. Is the $70k the billed to you amount or the COA? If it is the COA, it probably contains about $3000 of travel, incidental, other costs that you can control and earn as you need it.
Your parents can take a Parent Plus Loan.
“This might sound weird, but I know someone who started a GoFundMe site to collect a few thousand toward her college tuition.”
OK, don’t hate me but I really really hate accounts like this. It guilts people into paying for something that really is not the responsibility of anyone other than the family.
As mentioned above, your parents’ age is not considered for PLUS loans. There is a credit check that looks for things like recent bankruptcy or foreclosure. If your parents are denied the PLUS loan for some reason, you are then able to borrow an additional amount in unsubsidized loans yourself. I forget what the additional amount is but it should cover what you need.
You probably won’t even need all of that in loans though. A CMU IS major should be able to score some very well paying summer internships after a year or two.
That 70K COA includes some expenses that are within your control…travel, personal expenses, textbooks. You may not rack up that many costs. What’s the amount for the billed expenses (tuition, fees, room, board) and what’s left after you subtract your 56K grant and your direct loan?
@Otterma
If parents are denied a Plus, the student can take an additional $4000 a year in unsubsidized loans. Really…that is not enough to cover the shortfall for these students.
@thumper1 @Otterma Parent plus loans are not an option, my dad hardly has enough money to make ends meet for himself and my mom currently let alone with additional loans. He lives on a fixed, below poverty level amount of income that will run out in about 6-7 years (IRA rollover). {The o Getting in 12-13k total in debt can easily inflate to 20K by the end of the repayment period. Is only reason the EFC is as high as it is is because we have a lot of home equity}. here a way my parents can purposefully get denied from the parent plus loan so that I can get the additional amount?
That is a fantastic package you received. I agree with others that the amount your short is easily earned in the summer or during school. It will not be a problem at all.
Congratulations on such a wonderful package. You are truly blessed.
Is there anyway that you can get a job now (2 jobs for the summer if you have to) where you can make up the $3k?
Overall you have an amazing package, especially from a school that does not guarantee to meet need.
What is your FAFSA EFC?
I think you should call the school to discuss the facts…parents low income, their ages, their IRA running out in a few years, etc.
How much can you earn/save over the summer?
@thumper1 I guess I’m confused. I thought OP said he had a $3000-$5000 /year shortfall. Which would be right in range.
@boi2330 visit the us gov financial aid website to get details on exactly what the criteria are for the PLUS loans.
Fafsa doesn’t weight home value into their EFC calculation. I think CMU weights it in a way capped to your income