Need help with my financial aid

Paying for College
1

<p>I've been accepted to and plan on attending the University of Oregon next year. I am an Oregon resident with an EFC of 6800. My father recently passed away due to cancer so my mother is a widow. She has said she won't be able to help pay for college since she needs to save for retirement. I recently received my aid package from UofO and would like some help understanding it.</p>

<p>The total cost of attendance for UofO is $23,000. Tuition is $9,258 and room and board is $10,260. Miscellaneous other costs total to be $3,500.</p>

<p>Financial Aid Award:</p>

<p>Federal Work-Study Job : $1,500.00</p>

<p>Fed Direct Loan - subsidized: $3,500.00</p>

<p>Fed Direct Loan - unsubsidized: $2,000.00</p>

<p>Fed Direct Parent PLUS Loan: $8,248.00</p>

<p>Oregon Opportunity Grant: $1,950.00</p>

<p>Federal Perkins Loan: $2,000.00</p>

<p>Resident Dean's Scholar: $1,500.00</p>

<p>Dean's Access Scholar: $1,000.00</p>

<p>Total: $21,698.00</p>

<p>Is this a good financial aid package? If my mom refuses to take out the PLUS loan, what are my options? Are the various federal loans (fed direct, perkins, etc.) payed after I get out of college or sometime during? </p>

<p>Thanks for your responses in advance.</p>

2

<p>Do you live within commuting distance of UO? That would save you $10,000 a year and obviate the need to take out the PLUS loan.</p>

<p>You got almost $5,000 in grant aid, which for an in-state public at your EFC is pretty good.</p>

<p>Unfortunately, your only option without the PLUS loan is to attend a college you can commute to.</p>

3

<p>I’m sorry to hear about your dad. </p>

<p>Has your family financial situation changed since last year because of your Dad’s death? If so, you can ask he financial aid department to make an adjustment to your FAFSA to reflect this.</p>

4

<p>So sorry to hear about your dad.</p>

<p>You need to contact your school and let them know that your EFC was based on your father and that he has died. It’s likely the school can adjust your EFC or something.</p>

5

<p>The total cost of attendance for UofO is $23,000.</p>

<p>Tuition is $9,258</p>

<h2> room and board is $10,260.</h2>

<p>About $20k in direct costs (there may be some course fees)</p>

<p>Miscellaneous other costs total to be $3,500.</p>

<p>You have about $12k in funds of grants and loans. </p>

<p>What are the room and board options? Do they have less expensive meal and dorm choices? Or does that price represent the cheapest options?</p>

<p>How much can you earn over the summer? Can you work 2 jobs over the summer if need be? (such as 2 part-time jobs if one job won’t give enough hours?)</p>

<p>Do you have any other cheaper school options? </p>

<p>Are you a NMF?</p>

<p>Right now, your mom is in shock over the death of your dad. She’s likely very scared about her financial situation which is why she’s saying that she can’t help with anything. Unless she’s in a terrible financial situation, she may change her mind at some point and help you.</p>

<p>How much of a drop in income has she now experienced?</p>

6

<p>I, too, want to offer my condolences. As others have suggested, you should request a review of your aid in light of the situation.</p>

<p>When you calculate your packages, you need to exclude work study and loans. You have a little under $4500 in grants there. The Perkins loan is a bit special in that a college has to award it to you, but the unsubsidized and subsidized Staffords, you would be able to get at and for just about any accredited college. The PLUS is not even an offer as you mother would have to apply for it and might not even qualify. It is just a loan source for parents.</p>

<p>So you are in a situation where you will need to come up with about $23K for next year and only $4500 is in the pot for you, with guaranteed loans in the amount of $7500 in your own name. Work Study is just an option where YOU have to find a job from the listings they have and you can then try to earn what they say you can at those jobs, if you get the jobs. It’s all get as you earn, so you won’t get that money until you earn it… </p>

<p>You can cut those amounts in half, as you will be given the amounts by semester. So by whatever date, you need to come up with payment for the first semester. Can you afford this, is the big question. That’s about $8k, you will need for just the half year. And then you will have to come up with the other $8K mid year for the second semester.</p>

<p>All of your loans will have to be repaid, though only the unsubsidized Stafford will accrue interest while you are in school. But be aware, that at this rate, you will be well over $30K in debt at the end of your four years at college. It is on the high end, but, yes, a lot of kids do take on that kind of debt. </p>

<p>If the school cannot adjust your EFC and come up with other money for you and if you and your mother have no other resources, then you cannot afford this school, and commuting to a state school may be your best option cost wise. If you can work this summer, and if a reapprisal of your financial situation gives you a PELL or other grant to bring down the gap, it may be doable, though very, very tight.</p>

7

<p>I am so very sorry about your dad’s death. Very tough for you and your mom.</p>

<p>Did you file the FAFSA before or after he died? </p>

<p>If after, was there some money reported that came from life insurance or corporate death benefits? Are you (the student) receiving Social Security benefits because of your dad’s death? Those will stop once you turn 18 if you have graduated from high school by then. (If not, may I encourage you to apply for them – the date of application is important, and even a few month’s benefits could be helpful to you.) Were there significant medical costs that were not reimbursed by insurance last year or this year? Is there medically-related debt? Both of these should be included with your request to the school. </p>

<p>A summary with a request for a special circumstances adjustment should be sent a.s.a.p. to the financial aid office. You’re coming up against the May 1st deadline.</p>

<p>I understand your mom’s reluctance to take on debt at this point or use assets, at least until she has a solid financial plan for her future. Waiting on financial decisions is often the advice given to new widows/widowers for the first year, as decisions made in the midst of grief might not be good long-term decisions. (And, depending on your mom’s work situation (if any), medical bills remaining from your dad, medical debt, pension possibilities (if there are any), retirement savings, and her age, there is a lot to consider.) Do you have younger siblings?</p>

<p>Again, this is a very tough situation for you and your family, and I’m very sorry you’re having to cope with it. Best of luck.</p>