My Parents' Tuition Contribution = $0?

Parents Forum
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<p>Hi everyone! I'm relatively new here but have been lurking the forums for a while, and wondered if some of you parents might be able to offer some financial advice on my situation. </p>

<p>I'm starting to wrap up my college search and finalize a list of schools that I'm interested in applying to, but most of the ones I have chosen so far are a bit heavy on budget (roughly around $35k-50k per year). While most of these are schools that I adore... I'm starting to realize that I don't have any clue how I would begin to pay for any of them. </p>

<p>My family makes roughly $50k a year - but this isn't how it has always been and certainly not likely to stay this way for very long, either, as my dad is in sales and a lot of his paycheck comes from commission and can be really unpredictable. I've asked them how much they could contribute to the cost of school, and it comes to basically nothing. Maybe some textbooks here and there or money to help with other small living costs, but they aren't likely to be able to contribute even $1k a year. I'm okay with this and know that I'm going to have to shoulder most of the expense myself through working, finding financial aid, and applying for scholarships. As it is I've already taken a gap year so I can start to save up money. But the thing is, I don't really want to have to give up some of these schools because of their price tag. I originally planned on taking out loans, though I don't even know how much money you're allowed to borrow and if I could take enough out to cover almost full tuition.</p>

<p>Is it going to be a really stupid decision to take out that many loans, so I can go to a school that I love? There's a possibility that I would be borrowing $150k, if not more. Maybe this is inexperience and naivety speaking, but I don't mind if I have to pay debts off after I graduate - so long as it is a fairly regular and manageable payment every month, I'm okay doing that. I would apply to schools like Harvard and similar institutions because I know they can pay in full for anyone who makes <$60k, but I don't have the stats for it: right now my ACT is at 29 and my EC's are weak, though I'm going to try really hard to get a better score when I retest next month.</p>

<p>Some schools that I'm interested in are NYU, U-Mich, University of Chicago, possibly Brown and Cornell U - a few of which I have heard are not particularly generous with financial aid. My question is, can you even borrow that much money to cover most of your tuition? Is there ever any reason for it to be worth doing? I don't even know where to start in selecting schools that will be a possibility for me to attend, and right now all I have is my state school, which I am desperately wanting to avoid (I'm in Colorado). I'm a hard-working and bright student, and I would like to try and find a way to attend a great school, but if this is just me being idiotic and too bold when I don't have a way to back that up unless they decide I'm really worth giving money to, then I'll have to find a place that I can afford and that I'll do well at. </p>

<p>Sorry for the long-winded post. My parents aren't helping me with this process at all and have the mentality that I can just "go where I want to go", and I'm completely lost. Basically, does anyone have any advice on how a poorly-endowed student can afford school, without the parents' help? Is it even possible to manage, or should I lower my sights and just be happy to attend a "lesser" school and graduate debt-free? I don't know whether I'm giving up too easily or doing the right thing.</p>

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<p>Will your parents fill out the FAFSA forms? You may qualify for some need-based aid. It would be good to see how much aid, if any, you could hope for. </p>

<p>However, you will not be able to afford 35-50k/year on your own, even with some need-based aid. No one will lend you that kind of money (nor would you want them to–the payment on that amount would not be manageable at all).</p>

<p>You should look at your state schools, for sure. </p>

<p>Is there anywhere you can commute to from home? Community college, maybe? </p>

<p>Sorry to be a downer, but the schools you are interested in will not be realistic financially.</p>

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<p>The short answer is no. </p>

<p>As an undergraduate student, if you are still considered a dependent you can only borrow around $27,000 total under your name without a co-signor. If you are independent (not likely) you may be able to borrow up to $45,000. Your parents can borrow more in their own name (PLUS loans) but the loan will be to them, not to you. You can also get private loans with your parents as co-signors. They carry fees and higher interest rates. If your parents income is only $50K they probably will be limited in their borrowing capacity. You should check if they are even willing to co-sign any loans for you knowing they will be stuck with the bill if you don’t pay. </p>

<p>While you would qualify for need-based financial aid at most colleges few would cover your full need. NYU is notoriously stingy with financial aid and will gap most students. Don’t expect anything from Michigan as an OOS student. They expect most OOS students to be full pay. Brown, Cornell and Chicago are more generous but you would still end up with some portion to be paid by your family. Every college is now required to have a financial aid calculator on their web site where you can plug-in your information. Check them out.</p>

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<p>First, you will not have to borrow $150K to go to school given your family’s income. The first thing you should do is explain to your parents that they will need to file a FAFSA and most likely a CSS Profile (usually required at all the top schools.) These forms will allow you to be eligible for both Federal financial aid and institutional aid (in the form of grants which you do not have to pay back.) </p>

<p>Your parents need to fill these out or you will not be eligible for anything so talk to them about the need for them to fill these forms out. </p>

<p>Next, go to the website of each school you are interested in and in their financial information you will find all the information about aid offered to attending students. There is also for each school a calculator which will ask you to put in your parents financial info and based on that information give you an estimate of your family contribution. Some schools will even give you an estimate of what you can expect from them in terms of amount and type of aid. </p>

<p>If your stats are high enough that you are considering applying to schools such as Brown and Cornell which give institutional aid and U of C you will most likely be eligible for a lot of merit aid at schools just below that level (or at that level for some which give merit - Chicago, for instance)</p>

<p>There are many excellent colleges which give lots of money to bright kids whose parents have a modest income. You will need to do some research but you should not have a problem if you have the stats and your parents are willing to fill out the financial forms required.</p>

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<p>Carrie - Depends on where you apply to, but $50K/year is very low income and therefore you could go to school practically free. Look at Duke’s examples. A family with $55K/year is required to pay almost nothing for $60K COA. Parent’s contribution is elimated. Of course your folks have to help you to fill out the FAFSA and CSS Profile. Scroll toward the bottom of this page to see the chart: [Duke</a> Financial Aid: Award Statistics](<a href=“http://dukefinancialaid.duke.edu/undergraduate/stats/index.html]Duke”>http://dukefinancialaid.duke.edu/undergraduate/stats/index.html)</p>

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<p>You need to take another look at the Colorado schools as it is highly likely you will not be able to afford someplace like UofM. If you are just starting down the college path, you might be able to afford 2 years at a college you can commute to (if you are still living at home) or a local CC. Remember the degree is from the college you graduate…not the college you start. The things you learn, the experiences you have and the profs that you work with will make your experience. You also need to look at more than the first year…you need to have some sort of plan for all four years.</p>

<p>Unless you are 24 or married, your parents will need to fill out the FAFSA at the very minimum for you to take the federal loans that are available to you. $5500 for a freshman.</p>

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<p>These schools are a real admissions reach with a 29 ACT. I would suggest taking a more realistic look at what you and your family can afford, and where your stats may get you some merit $$. There are plenty of fine schools that will want you, but if you are on a serious hunt for merit-based funds vs FA, you need to broaden your search.</p>

<p>Also understand that EFC is not what your parents say they can afford, but what the <em>colleges</em> feel your family can afford out of savings, current earnings and future earnings (i.e., loans).</p>

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<p>Unless you have a very strong reason why you believe you will certainly be able to afford more, I’d restrict your borrowing to what the federal government believes you can reasonably be expected to pay back, which is the amount of subsidized Stafford loans over four years - $22k. </p>

<p>At any rate, most of what you ask is a non-issue, as no bank is going to loan you the amount of money you are talking about without someone else being on the hook for it.</p>

<p>Take NYU off the list - it is a non-starter, and an acceptance there will look more like a rejection once you get their aid offer.</p>

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<p>If your class rank is within the top 5 %, you may want to give Questbridge a try. Your ACT and family income, are both within range. But as others have already said, please try to avoid loans other than subsidized Stafford.</p>

<p>[Selection</a> Criteria](<a href=“http://www.questbridge.org/for-students/ncm-selection-criteria]Selection”>http://www.questbridge.org/for-students/ncm-selection-criteria)</p>

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<p>By the way, please be aware that the deadline for Questbridge is only 9 days away, on September 30.</p>

<p>[Scholarship</a> Details](<a href=“http://www.questbridge.org/for-students/ncm-scholarship-details]Scholarship”>QuestBridge | Scholarship Details)</p>

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<p>All good advice here. You have a 29 on the ACT, that’s the 93%, excellent, so congratulations. Here’s my 2 cents. Study as hard as you can for the next ACT. Every point improvement increases your options, which I’m sure you understand. You’re just beginning the search, and with the valuable information you can get here at CC, you’ll do just fine. Good luck.</p>

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<p>Borrowing an enormous amount of money for undergraduate school, even if possible, is just plain dumb, particularly in this economy. That having been said, it seems to me that there are four viable possibilities:</p>

<ol>
<li><p>Obtain an acceptance from a full need, no loan school. Most of these schools are among the most selective in the country, so given the ACT score, that is unlikely, but what’s the down side in trying?</p></li>
<li><p>Check out the flagship state U to see if your stats qualify for a big merit scholarship.</p></li>
<li><p>Try for a big merit scholarship at less selective private schools. Likelihood of success will vary from school to school, so a lot of individual research is necessary.</p></li>
<li><p>Spend two years living at home and going to a local community college, hoping to save enough money to spend the last two years at flagship state U.</p></li>
</ol>

<p>Good luck!</p>

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<p>If you are female, you might want to consider one of the women’s colleges. Barnard, Scripps, Wellesley, Smith, Bryn Mawr and Mt. Holyoke all meet full financial need, I believe, and because they are just women, the percentage admitted is higher than similar selective LACs. My D is at one of those schools and her ACT was 28. Our income was below $60K and she initially applied through Questbridge, but was not selected through them (went through the regular admissions process). The women’s schools all have cross-registration and proximity with coed schools.</p>

<p>If your family income is around $50K, you could do very well financially at a school that meets full financial need. My D’s school does not include loans in their financial aid awards for students in your family’s income bracket. We found it was less expensive for her to attend a top LAC that meets full need than to attend our local public institution.</p>

<p>I believe University of Chicago, Cornell, and Brown all meet full financial need (from your list above). NYU won’t; University of Michigan is out since you are not a Michigan resident.</p>

<p>You DO have options but it sounds like you will need to do the research on your own. You need to act on it all quickly, especially if you want to apply through Questbridge.</p>

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<p>@paperplanes - We’ll definitely be filling out the FAFSA forms, as well as the CSS Profile where it’s needed. There also is a community college here that I’ve attended during high school, and while I’m not against the idea of a CC, if it’s affordable I’m not sure I would like to stay in-state. I might try looking at CC’s in other states that I would like to live in as a possibility - but it would depend on how much the cost would be out-of-state (not to mention I wouldn’t be able to commute from home), though then again, maybe it won’t be much more expensive than if I attended my state school?</p>

<p>@CountingDown - About the schools I listed: I probably should have elaborated more, but those are definitely the very top-top reaches that I had in mind. I figured I would list them anyway as they give examples of what types of schools I gravitate towards, as well as give a general idea of how expensive said types of schools that I’m looking into might be. I most likely won’t be applying to very many of those, unless I can get my ACT in a better range. :)</p>

<p>@StillGreen and @college-query - I’ll definitely give Questbridge a more in-depth look. I’m curious to know what the stats are as far as acceptance rates through using the program. So far it sounds like it might be a good opportunity, though! Thank you for the suggestion.</p>

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<p>Student here: Two years ago I applied to both Cornell and the University of Chicago, and with a family EFC of a few thousand dollars, both schools asked for only $4000/year, and that was the estimated cost for me including room and board, miscellaneous fees, and personal expenses. For the college that I ultimately ended up attending, my financial aid literally covers everything, which makes it even more affordable than another school that had offered full scholarship. Top universities is definitely the way to go if you think you may have a good chance and like their environment.</p>

<p>USC gives out full and 1/2 tuition scholarships, with a deadline of 12/1; UPittsburgh does as well, given out on a first-come, first serve basis to those with qualifying stats, but you may need higher than 29 on the ACT.</p>

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<p>At a top school, maybe, but $50k is the median US household income. Says something about academic achievement and accessibility of higher education in this country.</p>

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<p>Also consider WUI schools
[Western</a> Undergraduate Exchange (WUE) | Western Interstate Commission for Higher Education](<a href=“http://wiche.edu/wue]Western”>Save On College Tuition | Western Undergraduate Exchange (WUE))</p>

<p>Sometimes 150% of tuition for another state is cheaper than CO. There may be scholarships too, especially I think in WY.</p>

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<p>Apply to the schools with the understanding that if you can’t make it work financially with loans totaling less than the Stafford max, you’ll walk away and go to a school that you can afford without massive loans.</p>

<p>And save and invest money as your kids are growing up so that you’ll have a college fund for them and they can choose what college they want to go to without worrying about the cost.</p>

<p>Sometimes, dreams have to be deferred a generation.</p>

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<p>Don’t take out that much in loans. It’s a huge mistake. I took out 50k and THAT was a colossal, huge, permanently damaging mistake. It’s time to re-examine your priorities. The next four years are not worth the rest of your life, and that’s EXACTLY the sacrifice you make with student loans like that.</p>

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<p>“But the thing is, I don’t really want to have to give up some of these schools because of their price tag.”</p>

<p>If I was your parent, I’d have one word for that: “Tough!”</p>

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<p>Apply to as many schools that meet full need as you can. You’re not in range for the Ivies, but there are tons of LACs that meet full need that you stand a chance at with a 29.</p>