Okay, I think I have the FA Figured Out..

<p>I’ve been pulling my hair about Financial Aid for about.. the past two weeks, and I think I have it figured out..</p>

<p>Georgetown states that the expenses for SY 2005-2006 are:</p>

<p>$45,730</p>

<p>So far, I have the following awarded to me:</p>

<p>Federal Pell Grant $3900
GU Scholarship $24,090
Federal Sub. Staff. Loan $2,625
Federal Work Study $3,000
Total $33,615</p>

<p>That’s still a $12,115 gap that needs to be filled.</p>

<p>Now, out of that:</p>

<p>Remaining EFC $12,115
GU Deposit -$900
Total Remaining $11,215
California Gov’s Scholar -$1,000
Total Remaining $10,215
Summer Job -$1,000 (This, obviously, is just a guess.)
Total Remaining $9,215 (Either a 5.75% or 5.25% Interest Rate)
Premier Signature Loan -$9,215 (Georgetown Recommended Lender)
Total Remaining $0</p>

<p>Hopefully, I can do a little bit better next year on the Financial Aid aspect of things. Does anyone have any suggestions?</p>

<p>I don’t think I qualify for Perkins @ GU or the SEOG. This is obviously barring any possibility of winning a scholarship (which I think I have a chance at a couple, but.. always plan for the worst and best cases, because the actual result will be somewhere in between..)</p>

<p>Any other suggestions?</p>

<p>tlaktan, do you know you can get that Premier loan for that much? How do you know that? I really am not at all familiar with this aspect of the game but I'm trying to learn. Is this note solely in your name? What are the repayment terms and when do you start repaying? Will it be available in the same quantity for 3 more years?</p>

<p>If you are satisfied that it will be doable and you set sail on making as much as possible by summer jobs and scholarships that won't reduce the aid already given-then you have done your due diligence. Time to decide if it's worth it.</p>

<p>LOL. I'm still trying to figure this out, but a Georgetown student (JasonHoya) is helping me out with it..</p>

<p><a href="http://finaid.georgetown.edu/loanrec-signature.htm%5B/url%5D"&gt;http://finaid.georgetown.edu/loanrec-signature.htm&lt;/a&gt;&lt;/p>

<p>That's the description of the Premier Loan. I hear there's no cap to it, so -- that looks good.</p>

<p>I believe there is a co-signer required for the Premier Loan. It's funded by Sallie Mae. There's a 6 month grace period and an in-school deferment, but I believe interest does accrue. </p>

<p>Because the Sub. Stafford Loan cap increases every year, I think that'll allow me to lower the Premier loan down a notch. There's a payment plan of 15-25 years.</p>

<p>Hopefully, some scholarships do kick in though. <em>crosses fingers</em> I've applied for 3 local, 1 national.</p>

<p>Did you ever figure out why Georgetown gapped you or figured your EFC so high when you qualify for a Pell grant?</p>

<p>Summer job:</p>

<p>Start looking for landscape jobs which usually pay very very well. You could earn $2500 this summer.</p>

<p>Have you called Gtown FA officers?</p>

<p>Calmom, I'm wondering the same thing. How can a family which is Pell-eligible be expected to have an EFC that high? Does GU not promise to meet need? That would be surprising in a school of that caliber.</p>

<p>Well, it's a long and complicated story, but to put it simply:</p>

<p>My parents' 1040 indicated an income that wasn't proportional to the rate of mortgage that should have been paid. My parents' run a business or businesses, so since the income:mortgage ratio was disproportional, they "automatically" assumed an EFC for us.</p>

<p>Cheers: I think I have a job already set; I may be working for my counselor as a paid worker over the summer. He paid the last worker around $2,000, so this would be of tremendous help. :)</p>

<p>tlaktan"</p>

<p>Can you talk to the GT financial aid office and ask to recalculate your EFC on the basis of what you explained here rather than let it automatically assume an EFC that really strains your family's resources?</p>

<p>What he's saying is that they assume, based on the mortgage they report paying, that the businesses make more money than reported. This is common as many really do hide money from businesses they own.</p>

<p>Andrew, CTY (Center for Talented Youth) at Johns Hopkins has good summer jobs for college kids. They pay $1000 for a 3-week session for RAs and they have 2 sessions per summer, so you make $2000. Not much but it's just 6 weeks.</p>

<p>
[quote]

What he's saying is that they assume, based on the mortgage they report paying, that the businesses make more money than reported. This is common as many really do hide money from businesses they own.

[/quote]
</p>

<p>My parents, however, don't hide money from the businesses that they own. We've been sinking faster and deeper into debt -- this is probably how the mortgage was paid.</p>

<p>Hope you didn't think I was implying that they did. A lot of people do however, and we'd be subsidizing many kids if they didn't pick up irregularities in reporting.</p>

<p>Basically, this is the differnce between a FAFSA EFC and a college's PROFILIE EFC. This happens often, particularly when primary residences are a significant asset . Am not quite sure I understand this particular situation, but I have seen colleges assess a financial statement, particularly when there is a home or own business involved differently from federal methodology.</p>

<p>So is my planned financial package a good plan? Or should I change anything in particular?</p>

<p>Andrew - </p>

<p>You are doing a great job of sorting all this out, but by my calculation you will end up graduating with $40,000-50,000 of debt. . manageable if you get right into a high income career, but a bit high to my way of thinking. </p>

<p>I would definitely contact a Georgetown FA officer, or have your most financially able parent do so. If they can be made to understand the uniqueness of your parents' situation maybe they can make a dent in that debt load.</p>

<p>Andrew, if you could show documentation of the borrowing your parents have done to pay the mortgage, would Georgetown reconsider? And would your parents be willing to share that sort of information? </p>

<p>I don't know if its any consolation, but I've heard of Georgetown doing a similar "adjustment" in a different context --- in the other case it involved a self-employed individual whose business expenses were too high in proportion to the gross income -- and an apparent Gtown policy to assume net to be a certain minimum percentage of gross. </p>

<p>I do agree with reidm that $50K of debt is on the high end - but I also think that Georgetown SFS is worth it -- IF you are very sure of your career goals and are willing to work very hard over the next 4 years, not just with school but with work outside of school. Do keep in mind that your parent's income might fluctuate from year to year, potentially making the situation even more precarious for you.</p>

<p>You seem to be hesitating on the Gtown FA call? Go ahead! Think of this negotiation as your first serious bit of diplomacy! It's true what they say. Many times, it's all about the money. No better time to start talking turkey!</p>

<p>Give us the report afterwards...we'll be waiting. :)</p>

<p>Hey parents,</p>

<p>Just realized this thread was revived.</p>

<p>1) I will call GU as soon as I get the facts straight with my parents. I don't want to be BSing the entire time I'm on the phone with the FAid Counselor. Will probably call on Monday.</p>

<p>2) Sending deposit in on Monday, as well. Is that a smart thing to do? Or should I hold off?</p>

<p>3) I will be working for my GC as an assistant to the Counselor (bah, I've been doing this) and will be receiving a $2,000-$3,000 trust grant from him. I don't know the specifics yet. In addition, I may pick up a night job to help with the tab. I'm still thinking about it. (The counseling job would be from 8am-3pm).</p>

<p>4) I have just been notified that I am in "major contention" for one or two scholarships, worth about.. 3.5K total. I don't know what the phrase is supposed to mean, but..</p>

<p>5) Hopefully if all works out well, I will only be taking out.. 5K (including Stafford) as loans..</p>

<p>Andrew - find out what Georgetown's policy is about the outside scholarships. Colleges usually subtract whatever you get from your award, but if you are lucky they will take it out of the self-help (work study and loans) first. Since your major problem seems to be the debt you might face, that will be a help. But in any case, you want to know ahead of time, to at least avoid disappointment. </p>

<p>As far as the deposit goes -- if you are sure that you are going, no matter what happens with Financial Aid - go ahead and send it in. I don't think it is going to prejudice you in any way asking for more aid at this point.</p>

<p>And if you can get it down to where you are only borrowing $5K this year... I think that's great and also very reasonable.</p>

<p>I contacted my FA counselor at Georgetown via email, and she said that it would help reduce the EFC before it would go into work study and loans. So, I guess, that means the loans I have to take out. :)</p>