Never took out loans for school! Help? Future OT student!

Paying for College
1

<p>Hi there,</p>

<p>I got accepted into the BS/MS Occupational Therapy program at Bay Path college. Is there anyone out there that also applied? Is anybody already in the program? I just received my financial aid package, and while I did get many grants/scholarships, it is still quite costly if I decided to dorm.</p>

<p>Kind of just looking for some advice.
I'd have to take close to 20k in loans for the first 2 years, and then the last year when I'm a graduate student I think close to 30k.
Do you think this is worth it? I know OT's get paid well, but it is just overwhelming.
I am coming from a Community College in which I have not acquired any debt, so I am not used to this.
I'm from NJ, in which there are almost no OT programs within this state. The only ones involve graduating with my bachelors first, and I prefer to take the combined route, because I believe it will save a little more money. </p>

<p>Would you suggest off-campus housing? That would save a bunch of money. But I'm 20 years old, and hardly have any clue honestly have never really had experience living off on my own/cooking/etc. Advice? Please!</p>

2

<p>Is that $20k/year for each of the first two years? How do you figure you’ll be able to borrow that much? There’s a limit on federal student loans for undergrad’s and that’s WAY over the limit!</p>

<p>And, yes, you might save some money if you live off campus - but you still have to pay for rent, utilities, food, so it’s still not going to be cheap.</p>

<p>Please give us a more specific breakdown of both the costs of attendance and the grants & scholarships you’ve been awarded. It’s impossible to tell if this is actually manageable without more exact numbers.</p>

3

<p>Sorry, I should be more specific.
Federal Subsidized Direct Stafford Loan is $5500
Federal UnSub-Direct Stafford Loan is $2000</p>

<p>And the Total Estimated Cost (after Financial Aid) : $12,477</p>

<p>That’s $19,977 in money that I would owe after just one year of school as an Undergrad. </p>

4

<p>If you would need to pay $70k or more for your OT degree, I’d be very cautious. That’s a LOT of money. How do you and family propose to get the $12,477 of more? Not all OTs get full time jobs and not all of them make a lot of $$$$. That is a lot of debt. Do you have any lower-priced options? What about a closer U where you can commute? State U?</p>

5

<p>How much will your parents pay each year?</p>

<p>You need a source for that $12k+ per year. You can’t borrow that by yourself. </p>

<p>Since you say that you don’t have many instate options, then your solution seems to be:</p>

<p>1) find a cheaper instate</p>

<p>2) If you go to this school:
…live cheaply off campus
…spend the next few months learning how to shop and cook inexpensive meals
…from now on, do your own laundry so that you know how to do that.
…minimize your “personal expenses”
…work full time over the summer and save for college.
…work part time during the school year
…see if your parents can pay for some costs…maybe books, food, or a few other things.</p>

<p>What is the cost breakdown of this school?
What is in your FA pkg?</p>

6

<p>On your own, without a cosigner, you can only borrow the amounts stated in your award letter. You can’t borrow that additional $12k. Either your parents would have to borrow it, or they (or someone else) would have to cosign for you - at which point both you and the cosigner are on the hook for that additional amount. In other words, if you don’t pay it, they’ll go after the cosigner. It’s a very risky situation for the cosigner.</p>

<p>And let’s say your parents agree to borrow (or cosign for) the additional $12k for your first year. Fast forward to your second year. You need to repeat the process, they try to borrow (or cosign) again . . . but, oops! The bank doesn’t approve the loan the second time around - your parents have already borrowed their limit! Now what? You’re already in debt . . . and now you don’t have the money to finish your education.</p>

<p>And, no, I’m not exaggerating - this happens far too often. Halfway through school, you have no way to get the additional funds, and you have to drop out. As soon as you stop attending, your student loans come due . . . but you don’t have a degree, so how do you get a job?</p>

<p>This is a very real risk if you try to borrow more than your federal direct loan limit. The federal loan funds will continue to be available to you for the two years that you’re an undergrad . . . but with private loans, there’s no guarantee.</p>

7

<p>Dodgersmom is absolutely right. Read what she has to say here. Is this really worth it to you? Can you come up with some alternative, less costly options. My son’s girlfriends is doing something similar. She has her bachelor’s already, and took the prep courses that were lacking at state schools on a part time basis, pay as you go (her job place may have helped with some of them) and then she applied to a number of state schools. She did not get accepted to any of the master’s programs, two years in a row despite a good GPA. So she is now enrolled in a private program with a cost close to $40K a year. She is working “full time” to get some tuition benefits from her employer, and is also paying as she goes, and her family is helping out, but she’s still borrowing $20 a year. No undergrad debt, so she’ owe $40-50K with a goal to keep the number close to the lower part of that range. </p>

<p>But she’s 30 years old, has worked in the field for a few years, and knows this is what she wants to do. It’s been a grueling semester for her and the program is year round. </p>

<p>Without family help, you can’t do it. You need $20K a year for the two years and you are getting $7500. You can fill out the 2013-14 School year FAFSA NOW, and get $6500 in your own name for a total of $14K between the two years (you get the money this school year–your college reimburses you since you’ve already paid out of pocket and you use that money along with the 2014-15 loan amount of $7500 to get $14K as a one time double dipping. But that still puts you short about $6K just for that first year. You, then have to still get a full $12500 more for your second year before you can borrow in your own name as a graduate student. You have to figure out if it’s even doable. It might be wiser for you to find work at a rehab center, nursing home, etc that will contribute towards the costs of getting your degree. Look for whatever resources available. </p>

8

<p>Cpt is right. If you quickly fill out FAFSA for this current school year, you can get $6500 and you need to BANK that. However, that is only a one-time thing. It may help with some upfront costs (getting an apt, etc), but it’s not going to help with the long-term shortfalls. </p>

<p>Talk to your parents to see how much they’ll pay. </p>

9

<p>CPT, and mom2collegekids Sorry, I’m a little bit confused about the FAFSA thing. So, I already filled out (2013-2014) and (2014-2015) FAFSA already, in the past. How do I get access to that $6500 exactly? Sorry can you go through it step by step? I’d super appreciate it. </p>

10

<p>“I’m a little bit confused about the FAFSA thing. So, I already filled out (2013-2014) and (2014-2015) FAFSA already, in the past.”</p>

<p>And did you say that you didn’t want loans? IF so, call your school’s FA office and tell them you now want to take out the Fed Direct Loan.</p>

<p>What is your EFC? What aid were you given? How much is the COA at your school?</p>

<p>and can you tell us how much your family will pay each year?</p>

11

<p>Well, I’m going to a community college right now and since I won a scholarship, it covered beyond the costs of my community college tuition. My award letter from this past year says if I need additional funding to cover costs, I could apply for a Federal Direct Loan. They can’t deny me a loan right even if I already have more than enough as long as I’m maintaining academic process and taking atleast 6 credits?</p>

<p>My EFC is 002408.
The COA at my current community college is is about $3,744.</p>

<p>I’m going to be graduating from my community college this summer.</p>

<p>The school I’m interested in attending, Bay Path College’s COA (undergrad 2014-2015) is:</p>

<p>Tuition: 30,859
Room and Board: 12,240</p>

12

<p>I really appreciate you taking the time to help me btw :-)</p>

13

<p>Talk to your CC financial aid and ask for COA to be adjusted for living expenses, and see if you can get the full Direct student loan for this year. Bank the money and that can be used for next year on top of what the school gets you. Also, if your parents get turned down for a Parents PLUS loan, you can borrow an additional $5K for the next two undergraduate years, but one or the other has to apply and get turned down. They can apply right on line and get an immediate denial or acceptance. If they are denied (they would be if they have outstanding payments that should have been made on their credit reports that re 60-90 , can’t remember which days overdue)</p>

<p>But, what I’m trying to get through to you, as is Momtwocollegekids, is that you are racking up a lot of debt doing this, and still not making the costs. If you are not going to get a cent from your parents, and the school does not give you some money to bridge the gap, where are you going to get the money yourself at this point in time? IT’s highly unlikely you can take out the loans on your own for the next two years as UG–they will require parental signature. Graduate school is a whole other story. Is it possible for you to finish your degree at some state school locally, and commute, and save the money, and then get into a 2 year masters program? For that, you would likely be able to borrow on your own name, and if you have no UG debt, you will “just” have the loans for that. My son’s SO is doing this right now. She finished up college with no debt, decided to go back for the degree/masters in the field, had to take some courses to get into the program which she took and paid out of pocket at a local state school. You wouldn’t even have to do that if you make sure you take all the UG courses while getting your UG degree since you know upfront where you want to go after you get your bachelor’s which she did not. You can go straight from UG to the Master’s program by taking those courses needed to get into that Master’s program, and then get your 2 year Master’s. For a Master’s you can borrow in your own name. </p>

<p>But right now as an UG under age 24 who does not meet the criteria for independence, you need your parents’ to be involved in terms of loans. It’s possible you can finnagle some money in ways that I’ve mentioned, but they don’t make up the gap.</p>

14

<p>joytotheworld listen carefully to what these other posters are saying. Be sure you truly understand the finances and try to get your family fully informed. IMHO you have got to look at other ways to get to your final goal. Even if you are allowed to rack up so much debt, do you want to be paying a student loan the rest of your life?</p>

<p>Is there a way to live with someone you know that you can cut housing costs to complete your UG?</p>

<p>Dave Ramsey and Financial Peace come to mind. There are a lot of people paying off very big student loans, some without a big income.</p>

15

<p>I often pepper my answers with anecdotes because I have kids who have gone through all of this not so long ago and saw the process work itself through for them and their peers.</p>

<p>It seems to me that you are a very good student. You have not taken out any loans for your two years at CC, area at the point where you will be graduating from there with an AA. The issue here is that you have been accepted to a private program for the next two years of UG work which is expensive, very expensive and you cannot afford without taking out a lot of loans. On top of that, in order to finish that program, you have to get a masters which this college is offering you in one year, but the cost for that is even more. </p>

<p>Here is the way I look at it. Yes, it’s a good field to enter, and IF you can come up with the money to do this, well and good. But you are highly unlikely to be able to borrow on your own so if your parents don’t get involved or another credit worthy adult, I don’t see how you will get the money. The thing is, if you can get your bachelors at some local state school you could be loan free for the next two years and then apply for a master’s only program that will entail an extra year, …but what you have gained is that you can borrow on your own for the program. Maybe apply to some state programs that cost less, plus you have two years to mull this over. As I mentioned before, my son’s girlfriend is doing this but she is 30 years old, has worked in the field, and KNOWS this is what she wants to do. At age 20, things can change very quickly.</p>

<p>I’ve mentioned in a number of my posts of a young woman whose mother I well know who is in so much debt, has put her mother in so much debt with loans, loans and more loans. They borrowed so she do a program of this sort, don’t remember the details, but it was an OOS school, cost a premium and she had to borrow to do this. IF she’d completed the program, things might have been different, but she changed her mind as 20 year olds are often apt to do. It happens more times than not. She loved the school but switched to a general lib arts program, still took an extra year to graduate and now owes more than she can see ever repaying and has her mother on the hook for a lot of this, to boot. These things happen. </p>

<p>If you get your degree, take all of the pre-requ prep courses to get into a master’s program in the field, you will be in much better shape to make this commitment, plus you will have other options as well having completed your BA. You might decide to apply to other health field programs instead. Things do change. BUt you will also be on your own two feet in terms of getting grad/prof school funding which you are not at this time as an undergrad. </p>

16

<p>I just looked up BayPath College which is a private college, which in this case, means pricey tuition. It does have a Masters program in OT, a two year full time program or a 4 year part time one. By going there to get your bachelors’, you are paying two years of undergraduate costs to them at their high private school rates, when you could go to a state school and get your degree for much less. The courses you need to get into a Masters OT program are listed. Just make sure you take those courses as you get your bachelors at lower state prices and then apply to the OT program there AS WELL AS to state programs in OT My Son’s SO did not get into any of the public OT master’s program which is why she’s going to a private one, but she’s 30 years old, and time is of the essence to her. She knows what she wants to do by this time and has a job in the field already as an assistant and needs to Masters to move up and get paid a better wage. In your case, you will be 22 when you get your Bachelors, and would have the time to do the program part time if you don’t want to borrow and want to earn as you go, might have a shot at going to a public program which is a lot less expensive. </p>

17

<p>The suggestion to complete your bachelors degree at your state school is a good one. Sit down and COMPARE THE COSTS!</p>

18

<p>Thank you very much for the detailed responses! I appreciate it. I am definitely weighing my options, and I really appreciate all your input.</p>

19

<p>Yeah, I am a good student. I currently have a 3.8 GPA, which I’m quite proud of. I was initially interested in the BS/MS combined route for OT because I figured it might be cheaper (taking graduate courses while paying undergraduate costs) but I’m starting to think otherwise. Also, it’s faster to complete the program.
I also have interest in dorming because I never had an experience like it since I’ve been commuting from home everyday. And I feel its harder to create bonds at a community college. </p>

<p>And by the way, my parents aren’t denying me of taking out loans. They would definitely be involved in the process. I know some people were posting about that.</p>

<p>I feel kind of torn. I really felt very attached to the idea of attending Bay Path. I want to get an experience away from home. And I know that’s still an option, and I can take cheaper routes… but I really liked the idea of 3 more years of school without having to take the GRE’s, and re-apply to school. </p>

20

<p>Yes, you would save a year doing this. And yes, I can tell you are attached to the idea of going to Bay Path. Believe me, however, when I tell you that it’s probably not worth it. Look at some of your state options. Talk to your counselor and see what transfer options you have to, say UMass, where the sticker price is going to be a lot lower if you go away to school there, if you want that option. I know when you get an idea in your head and think about it and get used to it, it’s hard to let it go, but I am telling you that after the money you saved going to CC and doing so well there, you might not want to end up paying high prices for a private school, that really is not that well known and is expensive. You may want to get your masters there in OT, but when you widen your horizons a bit more, going to a 4 year school, researching programs and school, maybe you’ll change your mind. </p>

<p>My son’s SO desperately wanted to get into a state program, but they are so competitive here in this area, and she tried in two states, got turned down. She’s going private, but again, she’s ten years older than you, and knows what she wants, has experience in the field and is really getting that master’s to get more money job wise. At this point, it was “do it” and pay the high prices, but it’s going down hard, I’m telling you. Thank goodness she doesn’t have any undergraduate debt. </p>

<p>Also, check the requirement of Bay Path’s masters program in OT. I don’t think it requires GREs. The other advantage of doing another two years without committing to the program, is that by taking the required courses, you are leaving the door open to other interests. In two years, you may be interested in other fields. Age 20 is still pretty young to make this commitment to a field. You’ll have less in loans and more flexibility, have gained more knowledge about what’s out there in the way of schools and programs. You likely can still go to Bay Path, and though you’ll need another year to get that master’s, yes, you’ll be able to take out your own loans by then, and not having interest accruing on the undergraduate loans those two years. </p>

<p>I think it’s great you have a directed interest in this field, and you should look for work in it as an assistant. Lots of nursing home and rehab center jobs available. </p>