Adding that even if a college grants a dependency override, that doesn’t make OP an independent student per FAFSA (so they would never qualify for Pell, for example). I know OP knows this, and also that getting a dependency override may not result in more aid (but it could) at a non-meets full need school (which the $22K school is AFAIK).
Correcting the above post, as OP could still qualify for Pell if the school grants a dependency override (to the extent OP would qualify for Pell based on her own earnings/assets).
Any other insights for OP as they pursue a dependency override @kelsmom?
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So…let’s say full Pell about $6200. $5500 Direct Loan plus $4000 additional direct loan because she is independent.
How will the rest of the bill be paid?
I think the OP mentioned that she was applying for scholarships to bring the all-in cost down to $18,000. Working full time in the summer and part time during the school year should be enough to cover the remaining cost. But I think at this point, the plan is for OP and parents to co-sign loans for the first year, and she will try to qualify for a dependency override once she is in college. Are there any things OP and parents should look out for when researching loans?
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Absolutely.
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The interest rates and origination fees.
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Does repayment start immediately after disbursal? For some private loans, this IS the case. If so…they need a plan for repayment immediately.
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Are loan payments not expected until after the student leaves college. Is there any grace period and for how long?
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Can they pay the interest only off on the loan each year while the student is in college?
The biggest issue here is that this student doesn’t have a firm plan for paying for college the first year…and really beyond that. If the student has to drop out of college…or reduces to less than 1/2 time enrollment, the payments on whatever loans she has will begin. This is a risk here. And not making payments is a huge huge issue.
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I don’t have any insights regarding the dependency override, because it depends on the situation, the school’s interpretation of the situation, the documentation the school requires for that particular situation … dependency overrides are Professional Judgment, and as such, each case is evaluated individually based on regulations and the particular situation, as well as within the policies of that school. There is no way to predict the outcome for certain. The student will want to develop a relationship with the financial aid department once at the school. Once at the school, the student can seek counseling at the school’s counseling center. Not only does this sound like it may be helpful for the student, but it also might be helpful if the student seeks a dependency override.
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Do you know any good sources where I can get a breakdown on the things you listed?
For loan info…you need to ask each lender…because this varies from lender to lender.
The best person to do the asking is the person actually applying for the loan. That would be your parents. You aren’t a qualified loan applicant…you just don’t have enough income or collateral to borrow money in your own name…except those Direct Loans.
So…you and your parents need to sit down with some loan officers from various places…get their information, and then see IF any of these things really will work for your family.
If your parents have outstanding loans from your sister, this could impact their eligibility for additional loans.
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I just wanted to understand the loan process better when it comes to college loans because I’m a first-gen. I’m the first person in my family to go to college. My parents don’t know anything. They may know about loans, but not the types of college loans or what’s best.
My sister never went to college.
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You said on your other thread that your parents co-signed loans for your sister. Were those for college or something else? Do you know if this loans are paid off? Need help finding safeties and matches - #79 by OnyxShimmer
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I’ll DM you
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The other thread states it was for community college.
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Over a decade ago lol
But you said she never went to college.
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Some people don’t refer to community college as “real” college. Not debating whether they are correct or incorrect, but it’s not an unusual opinion on and off CC. Not surprising that a teenager might see a significant distinction between a 4yr residential college and a community college.
In reality, there is a difference. Students generally cannot achieve Bachelor’s degrees at community colleges, the vast majority of community colleges do not offer a residential option, 4yr colleges don’t offer some of the classes available at community colleges, and there are other differences.
No harm, no foul here
In our family, one important issue is how soon the parents can be removed from the loan, if at all. We use Sallie Mae, we were removed from our kids’ loans after a year of repayment. Another issue is what happens if the students dies or is permanently disabled. In our case, the loans would be forgiven, but that’s not the case with all lenders.
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You said your sister went to college, didn’t you? Here is what you wrote.
“ Ya, she co-signed. I just think she didn’t give my sister the FASFA information. Now my sister is in debt. This was all for CC 9community college).”
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She dropped out within like 2 weeks
Can we stop piling on to the OP, who is a vulnerable teenager? She may not have written with precision – eg her sister lasted 3 months at that community college, or something, and the OP, in her head, doesn’t consider that really attending college.
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