<p>My son's been accepted to most of his colleges. Now I'm sweating how I'm going to pay for his tuition. I've filled out the FAFSA and CSS Profile, and have some questions:</p>
<p>I received an EFC of around $16,000 from FAFSA, but didn't receive any EFC from the Profile application. I've read others say they had a Profile EFC. Was I supposed to receive one?</p>
<p>Stafford loan limits: can a student take out both a subsidized and unsubsidized loan, and if so, are the annual loan limits for each loan, or both types combined?</p>
<p>From what I've read, it sounds like the Parent Plus loans are the best parent loans I'd be eligible for. The fees associated with these loans seem to vary widely, does anyone know who offers the best deals on these loans?</p>
<p>When you receive a financial aid package from a college, how specific is it? Does it generally include the best options for financing the students education?</p>
<p>Please forgive my cluelessness, and thanks in advance for any help.</p>
<p>The maximum Stafford loan for a freshman is $3500. (that is total - subsidized or unsubsidized or a combination of the two). If parents have bad credit and apply for a plus and are turned down the student is eligible for a further stafford loan pf $4000. Finaid has good information on loans here FinAid</a> | Student Loans</p>
<p>In our case my daughter had grants, subsidized Stafford, Perkins and Work Study. The amounts were listed in her financial aid offered and she had to accept or decline each portion of the offer. Don't know how the parent loan portion works.</p>
<p>YOur bank should be able to tell you about PLUS loans</p>
<p>Stafford loan limits- both types combined for the limit</p>
<p>However some schools also offer Perkins subsidized loans</p>
<p>If the school pledges to meet 100% of need- you will be paying upfront close to $16,000, unless you have big assets that PROFILE uncovered.</p>
<p>Say the student qualifies for $20,000 of need from a 100% need met school.
$2,000 from a Perkins loan
$3,000 from work study
$3,000 from Stafford loan
$12,000 grant from school</p>
<p>the above would meet 100% of need.</p>
<p>Hard to believe that Stafford is still only $3,500 for freshman- that is what it was for my D who began college 7 years ago</p>
<p>I'm also suprised how low the limits on Stafford loans are. I guess since they're given to students without credit checks, there might be a high default rate.</p>
<p>Stafford Loans - yep the kids are very limited on what THEY can borrow. To get a private loan they will need a co-signer or very good, established credit (very rare for an 18 yr old).</p>
<p>Shop around for PLUS and even Stafford. Don't rely on your bank and don't rely on the school. In PA, the Keystone Loans (stafford and plus) are available for residents and those who attend school in the state through PHEAA.
Perhaps Maryland has a similar program. If you child is going to school out of state then check that states programs they might be available to you.</p>
<p>If the Financial aid office tells you or your child that you MUST get the PLUS and/or Stafford loans through them - not true. It is easier for them if you go through them but they can't make you if you found a better deal elsewhere.</p>
<p>I just wanted to elaborate on some information you provided. </p>
<p>Some schools particiapate in FFELP (Federal Family Education Loan Program) which means that students can choose the lender they wish to use for the Stafford Loan Program and PLUS program (parent loans). Students can choose any lender they want although schools may publish a preferred lender list for their convenience. This list is complied of lenders the school believes will provide the best services and fees rates (not necessarily interest rates but loan fees).</p>
<p>Other schools participate in the Direct Loan Program which is also part of the Stafford Loan program but there are no lenders involved. The School draws the funds directly from the Department of Education and pays the student. The plus side to the Direct Loan Program is that they do not sell the loans (FFELP lenders do sell loans) and the PLUS interest rate is 7.9% compared to the FFELP PLUS loan rate at 8.5% (a loophole in the law).</p>
<p>Both programs have merits and faults. If a student choose a school that is FFELP they must be good consumers and prepare to do some research.</p>
<p>To also add to the last post...Do check out the list of preferred lenders that the schools offer. The lenders sometimes waive the fees if you go with them. </p>
<p>Never saw an EFC on a Profile either. I'm assuming you're looking at private schools if you've filed the dreaded profile. Check and see if the school offers their own school loan. My S school has a pretty decent program at 7%. They also offer a tuition payment plan through Sallie Mae that is interest free. Can't beat that. You figure what you're going to owe after all the aid and scholarships and divide by # of months and they bill you for it. They even waived the $30 enrollment fee.</p>
<p>Right but there are state programs as well - in PA we can borrow from PHEAA. The state loan program pays the origination fee, give a lower interest rate than the federal.
My daughter's school in NC gave me a song and dance about how they don't "use PHEAA" - too much trouble for them. But she got a much better deal and I insisted. The financial aid offices can't make you use their programs. My kid got a rate of 6.55% compared to 6.8% federal rate and zero fees - you can be charged up to 4% in origination and guarantee fees.</p>