My FA Package

Paying for College
1

<p>Hey everyone, </p>

<p>I recently received an estimate FA package from GW (based on CCS profile info, they will review the fafsa soon). </p>

<p>This is what they offered:</p>

<p>30,000 Board of Trustees Scholarship
7,000 University and Alumni Award
3,500 Federal Subsidized Stafford
2,000 Federal Unsubsidized Stafford
2,200 Federal Work Study
1,500 Federal Perkins Loan</p>

<p>46,200 total</p>

<p>I was very pleased with this offer and I'm praying that the information provided in the fafsa doesn't differ to the point where they reduce this. (I would hope that they expect fafsa to differ from CCS before making this estimate). But aside from that, im just curious about a few things.</p>

<p>1) I know what unsubsidized/subsidized stafford loans are, but thought stafford + perkins loans were not offered through the institution but rather though application by the student himself. Because they offered stafford loans here, does that mean more cannot be taken out? (Same question for perkins). </p>

<p>2) Despite this huge financial aid package, there is still going to be a $10-13k gap for total cost of attendance. This is manageable for us, but my parents are trying to convince me to take out that amount (minus what I get in misc scholarships) in more student loans, because they think it will be easier for them to just give me money to "help me pay them later". I'm hesitant because I don't want because an extra 10-13k in loans per year will add 40k+ over 4 years to the manageable 28k that I have now. I don't want to hit any sort of cap because I plan to go to graduate school (perhaps more than once), and I just don't like the idea of having 70k in loans under my name before grad. </p>

<p>Are PLUS loans really that difficult to pay off, and is there really no point to it as they say? A 10-13k gap was much less than expected and I'm confident my parents have the money to contribute at least most of that.</p>

<p>Thanks for any help!</p>

2

<ol>
<li><p>No, you cannot take more out than the school is offering you and all federal student loans are now made directly (ie. you take them through the school, not through a private lender). The maximum freshman Stafford loan (sub + unsub) is $5500. Perkins loans are made from the school’s allocation of these funds, so whatever they award is what you get.</p></li>
<li><p>There are probably no other student loans you can take without a cosigner…so your parents will be on the hook for them anyway if you don’t pay. Plus loans are probably the easiest to arrange as they’re also federal loans, and repayment can be deferred while the student is in school. The interest rate is fixed at 7.9% and I believe a variety of payment terms are offered.</p></li>
</ol>

<p>I think you’re wise to limit the amount of debt you have for undergrad. If your parents are unwilling to borrow and don’t have the savings/income to pay out of pocket, do you have another school on your list that will meet your full need?</p>

3

<p>sk8rmom,</p>

<p>Thanks for the info. How do parents go about applying for PLUS loans if these other federal loans are offered through the school? </p>

<p>My parents are hesitant to borrow because they have this idea that I can take more student loans out that will be easier for them to help me pay. I wasn’t entirely sure how all of these loans worked in order to clarify for them that I cannot simply just take out more. I’m confident they have the financial capacity to manage 10-13k per year, especially with loans. </p>

<p>Also - I thought PLUS loan payments had to start within 60 days? If they can be deferred while I’m in school, does interest accrue over all that time? They seem to be afraid of high interest rates on these kinds of loans, making them think that me taking the money out in student loans would just be easier.</p>

4

<p>Do a search on the school’s website for Parent Plus. Interest is not subsidized for any federal loans other than the Subsidized Stafford and Perkins, so Parent Plus and Unsubsidized Stafford do accrue interest. Payment of principal and interest can be made while the student is in school or parents can request the loan be deferred until you graduate or drop below half time attendance. </p>

<p>The excessively high loans you hear about are coming from private student loans. These are loans you can take, up to the remaining amount in your COA budget, through a bank or other lender. They typically require a cosigner unless the student has an income and credit history.</p>

<p>Finaid.org has a lot of info on student and parent loans, as well as repayment calculators. Perhaps you and your parents should do some research and come up with the right combination for your family.</p>

5

<p>Congratulations, you have a good head on your shoulders. On the parent’s forum there’s a thread about a girl suing her parent to help her repay college loans.</p>

<p>Having the maximum Stafford and a Perkins is more than enough for you to take on.</p>

6

<p>If your parents can comfortably pay the $10-13k per year, why are they considering loans to cover it? GW probably has a 10 month payment plan, which can make it easier to stomach parting with the money. If they do need to borrow, PLUS is a good option … but not the only option. They can consider other sources of borrowing that might be available to them, as well.</p>

<p>You are wise to limit debt. You got a good aid package, and the student loans offered to you are the max I would want to borrow.</p>

<p>Do add up tuition, fees, room, and board. How much is it? You have $44,000 in money that will pay directly to your account. The only other direct costs will be tuition, fees, room, and board. The rest of the COA is comprised of costs you have some control over … buy used books, watch your expenses, etc & you can cut your gap.</p>

7

<p>You need to inform your parents that your student loan limits are already at the max amounts.</p>

<p>If they don’t believe you, show them this thread.</p>

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<p>I looked up this school, and here is my two cents:</p>

<p>The direct cost for GW
[Costs</a> of Attendance | Paying for College | Undergraduate Admissions | Apply | The George Washington University](<a href=“http://www.gwu.edu/apply/undergraduateadmissions/payingforcollege/costsofattendance]Costs”>http://www.gwu.edu/apply/undergraduateadmissions/payingforcollege/costsofattendance)</p>

<p>Looks like tuition and fees are $43,155 and if she lives on campus, this is another $10,120 added to the bill. I also estimate $1,200 in books for the year.</p>

<p>That is a $44,355 bill you pay to the school.</p>

<p>So if you subtract their 37K “write off” it would be</p>

<p>$7,355 minimum you or the folks would have to come up with to pay the school (for your freshman first year, anyway). Also be aware this amount would be cut in half because you normally only have to pay for a semester at a time.</p>

<p>Keep in mind, you would be borrowing $7,000 in Stafford/Perkins loans and yes the folks could take out a PLUS loan for this and more (COA is higher than the direct costs). Your Work Study money isn’t normally something that can be used to pay down your account as your school has no way to guarantee you’ll find a job. </p>

<p>PLUS loans are not difficult for your parents to get, but like others have suggested, if they can cough up 10K then it would be better than paying that 7.9% interest for 10 years.</p>

<p>

You need to ask your school if they guarantee that 37K “write off” for all four years. I’d hate to see you… later down the road… with the folks not being able to cough up $37,000 and the $7,355 when they offer that write off to incoming freshmen instead of you. </p>

<p>

</p>

<p>Not if you are the student because you don’t have to repay parent PLUS loans. If your parents are living comfortably with no danger of being dragged down by today’s economy then let them deal with it. PLUS loans are not your burden to bear.</p>

<p>

When you filled out the fafsa, it asked if you were interested in taking out a parent PLUS loan. This is the starting process, but if you don’t have it listed on your award letter you can always call GW and ask to add one.</p>

<p>

</p>

<p>That is wonderful they will be able to help you. As I mentioned in the beginning, your schools COA is NOT your actual payments to the school. But if your parents are hesitant to borrow, I would encourage you to look at less expensive schools. Like I said, there is ALWAYS the possibility this school will not offer you those “write offs” beyond this year. Always be prepared to pay full price, always. If you and the folks aren’t ready for this, then you should consider many many options… esp your first two years of school when you can attend a school for less that what your parents can pay in cash.</p>

<p>

Yes, parent PLUS loans can defer their payments while you are in school. This is not the norm however because you being in college and then graduating does not effect their income (or ability to repay) their loans. Yes, the interest does accumulate.</p>

9

<p>Work study is to pay for your “day to day” expenses (pocket money). It is earned over the year…and you get paychecks like a real job. If you can’t get a work-study job, you may need to find a part-time job in order to have pocket money.</p>

<p>*Looks like tuition and fees are $43,155 and if she lives on campus, this is another $10,120 added to the bill. I also estimate $1,200 in books for the year.
That is a $44,355 bill you pay to the school.</p>

<p>*</p>

<p>those costs are for the CURRENT school year. Next fall’s costs will likely be 3-4% higher. And, each following year will be higher.</p>

<p>It’s safe to estimate that direct costs will be about $46,500 for this next year (again, later years will be higher)</p>

<p>If the aid package is for $46,200, you have to subtract the work study ($2200), since that is for personal expenses/pocket money - not really for direct costs.</p>

<p>So, the student will have $44k to go towards direct costs and parents will have to come up with the balance and transportation costs…not a whole lot…probably about $5k per year. </p>

<p>COAs are padded.</p>

10

<p>Actually I have a friend with a child at GW and I recall (and then looked up to confirm) that GW doesn’t raise tuition for each student beyond what it costs in their freshman year. As per their website:</p>

<p>Fixed Tuition Plan
We are committed to attracting academically qualified students who want to be at GW. Through the University’s innovative fixed-rate tuition plan, students no longer need to be concerned about annual tuition increases. The tuition you pay as an entering student remains fixed for your undergraduate program provided you maintain continuous full-time enrollment and are registered for a minimum of 12 semester hours of study each fall and spring term. Students also have the flexibility of a tuition fixed for up to ten semesters of study should a fifth year be required to achieve their academic goals. There are no additional fees except for a minimal Student Association fee.</p>

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<p>Academic Year - 2010-2011</p>

<p>2011-2012 academic year costs will be available in late February 2011
Tuition* $42,860
Student Association Fee $ 45
Orientation Fee** $ 250
Room and Board*** $ 10,120
Books and Supplies $ 1,200
Personal**** $ 1,400</p>

<p>The grand total there is $55,875. As a freshman, you can’t ignore the cost for room and board. You could probably subtract the personal expenses and plan to pay for those needs from summer earnings and possibly also cover your book expenses that way. </p>

<p>Even so, you are left with $53,275. Receiving $37,000 in scholarships is indeed generous. You should inquire as to how likely you will be able to find a work study position.</p>

<p>$7,000 in student loans in your name isn’t ideal, but isn’t ridiculous either. BUT for you to cover the remaining $11,475 or more is not advisable.</p>

<p>You need to talk to your parents about their contribution. What is your EFC? Can your parents afford it? To take out Plus loans now and owe interest from day 1 isn’t the way to go, especially if you are considering grad school.</p>

<p>Best of luck to you.</p>

12

<p>Thanks for the input all</p>

<p>I know that GWs tuition rate is fixed for up to 10 semesters, so I will not see a tuition increase each year. GW’s financial aid offering is also guaranteed for up to 10 semesters as well, so once it is official I don’t think I’ll have to worry about it getting taken away.</p>

<p>Also, less expensive schools are not really an option at this point. I applied ED to this school and they have received my $800 desposit and declaration of intent. I also have no desire to go anywhere else :). I would just like to say again that I was very pleased with the offer and 10-13k in leftover cost for room and board is managable for my parents. I’m just trying to find the best way to take of that remaning amount.</p>

<p>EDIT* Also FAFSA4EVER, while I know that a PLUS loan is “not my burden to bear”, its still important to me what parents are stuck paying and if for some reason they can’t pay then I can’t go, and I want it to be as easy for them as it can be. They just seem to have a different idea of how to best manage that 10k-13k than I have, even though I know we can handle it. I will show them this thread.</p>

<p>Also, he not she :).</p>

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<p>ult, just be aware that it doesn’t sound like the tuition guarantee applies to fees or other charges like room/board. Although their fees look very low, I would expect all of these costs to increase annually.</p>