Need pro advice

Paying for College
1

<p>My d has a friend from a dysfunctional family, parents divorced, lives with mom, who provides no college funding support but is the custodial parent. The girl, bright and dedicated received a substantial scholarship that should have covered most if not all of COA at a state college for four years. </p>

<p>She's never filed FAFSA, and parents have no apparent interest. She's paid COA from the scholarship funds for the first three years and part of year four. I assumed she used the rest as living expenses, I don't know. She now has an $1800 outstanding balance from Fall '08 semester and obviously cannot register for Spring '09 classes. She has to finish up in Fall '09, but probably less than as a ft student. I don't have the detail yet.</p>

<p>I told d I would walk her friend through the FAFSA process, and explain the requirements, and realize that her mom's info is required. Whether the mom will cooperate is unknown.</p>

<p>My question centers on her immediate situation. Filing FAFSA now (albeit a bit late) would get her aid for Fall '09. I understand that. My question is does a Stafford allow for retroactive funding? She needs to clear the outstanding balance, of $1800, has COA of about $4500 for spring '09, and I'm guessing $5000 for Fall '09 assuming a 10% hike.</p>

<p>Can she still file for fed aid to cover the '08 academic year costs or at least a portion? She has not received or applied for any previous fed aid, so she's not "maxed out".</p>

<p>Private loans are out, no parent will cosign, and I would advise her against them only as a last resort. She may be able to persuade a grandmother or aunt to cosign for a private if absolutely necessary.</p>

<p>Thoughts, comments, suggestions?</p>

<p>I know she needs to meet with a financial aid counselor at the school, but she's clueless and would want her armed with as many facts and options possible.</p>

2

<p>A bit more info:</p>

<p>There is no outstanding balance against Fall '08. The current Spring '09 total of $7000 will be reduced to about $2000 after the remainder of her scholarship is dispersed. This ends the four year local scholarship. </p>

<p>Her need for academic year 09-10 will be about $4500-$5500 assuming a she commutes from home, eliminating housing and board costs.</p>

<p>She can file FAFSA for 09-10 a bit late, but my question also is can she file retroactively for the semester in progress? I understand this is two separate filings. She did file once as a freshman, but was denied aid because of the $10/k per year scholarship that was in effect.</p>

<p>Am I correct in assuming fed aid = COA-(outside & institutional scholarships+institutional grant aid)? Been a few years since I've done one for my own kids.</p>

3

<p>The 08-09 FAFSA can be filed until, I believe, June 1. The 09-10 one is not late at most schools yet, and certainly not late from a federal standpoint. If she is eligible for a Stafford this year, she should be able to receive it if she files. She should do so as soon as possible, and she should contact her FA office for additional guidance, and also possibly her Bursar's office to let them know she's in the process of applying for additional funds to pay off her balance. Remind her to accurately chooses which FAFSA she is filing for each year (both options will be offered when she begins the process.)</p>

4

<p>Federal aid will be dermined by her family EFC. Also, even if the school decided there was no need left because of scholarships, everyone can get an unsub STafford loan.</p>

5

<p>I believe that if she fills out the 2008-2009 FAFSA and submits it ASAP, she will be eligible for the Stafford loans at least. </p>

<p>Regardless...she will need her mom's info. And the tax info she will need will be the 2007 info for the 2008-09 FAFSA.</p>

<p>Is there any relative or someone who might be able to help this young lady? She is so close to finishing and has done so much already. Perhaps there are some friends or family who might be willing to each make a smaller contribution to help her pay her current bill.</p>

6

<p>For Spring, she would want the 2008-2009 FAFSA. FAFSA cannot retroactively go back and pick up a prior term in that manner.</p>

7

<p>She can still submit an 0809 FAFSA. If she plans to take summer courses (and summer is still considered part of 0809 at her school), she has plenty of time. If the current semester is her last for the aid year, she needs to hurry! My school cannot initiate new Spring only Stafford loans after April 8. She needs to contact her finaid office ASAP if she can't get parent FAFSA info quickly.</p>

8

<p>Thanks people. Basically confirmed all that I suspected. I realized there would be 2 different academic year FAFSA's one for the '08-09 & a one for '09-10. She knows she needs her own mom's tax info for both years. </p>

<p>I did not realize she could get the unsubsidized Stafford even even if EFC>COA. NikkiL or kelsmom, or anyone else could you point me to a link? I just can't pinpoint this.</p>

<p>The $40k scholarship she got was from a local company, and it was designed for kids with good grades and marignal/iffy backgrounds. She has a solid GPA, mostly all Dean's List semester. If she has to, she's going to see if the company will lend her the money. She's proved her worth on the chance they gave her. They may be willing to help her finish if all else fails.</p>

<p>thumper1, I broached the relative possibility. There's a chance, but slim. I'd help, but I have limited resources.</p>

<p>Thanks again folks. I'll let you know how it develops.</p>

9

<p>Student</a> Aid on the Web</p>

<p>
[quote]
How much can I borrow?</p>

<p>It depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Loan. A subsidized loan is awarded on the basis of financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study (see below).</p>

<p>You might be able to borrow loan funds beyond your subsidized loan amount even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you're eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.</p>

<p>You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you don't exceed the annual loan limits.</p>

<p>If you're a dependent undergraduate student (excluding students whose parents cannot borrow PLUS Loans), each year you can borrow up to:</p>

<pre><code>* $5,500 (for loans first disbursed on or after July 1, 2008) if you're a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount can be in subsidized loans.
</code></pre>

<h1>$6,500 (for loans first disbursed on or after July 1, 2008) if you've completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount can be in subsidized loans.</h1>

<h1>$7,500 (for loans first disbursed on or after July 1, 2008) if you've completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount can be in subsidized loans.

[/quote]
</h1>

<p>But she will need to file FAFSA to be able to get unsub loans.</p>

10

<p>Thanks, swimcatsmom.</p>