Out of State Financial aid

Colleges and Universities A-Z University of Michigan
1

<p>By estimation, I would probably be in debt of 60k-75k(including est. interest..) after attending 4 years at UMich and that's if I spend wisely. My parents cannot contribute much.. Is it all worth this? The experience, the education, the networking and alumni networks? I want to major in environmental studies/science. Is Umich just a fantasy or is truly worth the financial burden? I'm really stuck on what I should do. I can be financially comfortable at private institutions. </p>

<p>I have tried calling for an appeal since my parents recently separated, but they said they wont re-review a package unless data has been changed. They said they calculate the numbers and generate an amount. I feel like numbers shouldn't determine your need, I have one sibling in college and once she graduates, my brother begins college. My father cannot contribute much because he has a hefty mortgage to pay off. They said I can try writing a letter explaining my situation, which I will do...but how much will that help?</p>

2

<p>Hi Rezip,</p>

<p>I’m in a pretty similar situation. I’ve been offered near full tuition for a couple other places including Carnegie Mellon, but I’d be graduating 60k-80k in debt from Michigan. My parents also can’t contribute. </p>

<p>Here’s my decision:</p>

<p>As crazy as I’ve been told I am for doing this, I’m choosing Michigan. A friend once told me that money can be made and paid back and made again, but a college education cannot be re-experienced. For me, I would have more opportunities coming out of Michigan Ross than I would out of CMU Tepper/HSS, because of recruiter recognition, school focus/teaching method, and environment/extracurriculars. I’m planning on a professional degree so loans are an issue for me, but I’m confident that I can repay the loans with hard work and a little bit of luck in the job arena. There are other factors too, of course–CMU’s too quantitative for me, and the college/sports/social scene isn’t as prominent. From the research I’ve done, I know I’d be happier at Michigan, and I think the debt is worth the four years of happiness and the edge in the job market. It’s somewhat of a gamble, but business people always say that you can’t get big returns without taking big risks.</p>

<p>But anyway, that’s just me, and only you will really know whether or not Michigan is worth the debt for you. Just ask yourself some of the questions I asked myself. What are your plans after graduation? Do you want to go to grad school, and if so, will you be able to handle the debt with your plans? If not, would you be willing to sacrifice a debt-free lifestyle for Michigan’s education and opportunities, or would you rather graduate loan free with the options that your other colleges give? If you choose another college, will you spend the next four years at that college wishing Michigan had given you more financial aid? Or, if you choose Michigan, will you spend the next four years pulling your hair out over debt? Choose the one that you think will let you enjoy your college experience most, and set you up for the lifestyle you’ll be happier with. Even if you make the wrong choice, things will always sort themselves out in the end as long as you have the resolution.</p>

<p>As for your other questions–I know many schools do offer more aid if you’re a competitive student and tell them another college offered you more than they did. I’ve heard that Michigan has done this before, but I can’t verify that. I only just wrote to Michigan this morning, so I have no personal experience to relate yet. It certainly doesn’t hurt to try, though.</p>

<p>Best of luck with the decisions!!</p>

3

<p>Thanks Dsharpminor!
Yeah those questions are always on my mind, but it’s tough because obviously there’s no definite answer. I wish I could talk to a recent graduate. I’ve ask a few teachers for advice but they all went to college a billion years ago.
I’m usually very good with money but I’m just worried it might hinder my college experience. I just have to have think of it as an investment.
Are you taking out a bank loan or parent plus?
I heard a rumor at my school that a senior last year was originally going to CMU but he apparently contacted U-M and received more aid. Anyways let me know how your letter works out! I’m about to write my own.</p>

4

<p>I’m still not sure about what loans I’m taking out yet, but I’m banking for parent plus. I received some federal subsidized loans but they’re nowhere near enough, unfortunately.</p>

<p>All of my teachers tell me to just go with the one that gives you the most money, but then again that’s very easy for them to say when they’re not weighing personal preference factors. Oh well, I guess we all have to just make a choice and deal with the consequences as they come, whatever they may be.</p>

5

<p>You as an individual will most likely only qualify for the Federal Direct Loans ($5500 for freshman). Any other loans in your name would most likely require a co-signer – someone credit worthy who will also be responsible for the payments. Parent Plus loans are taken out by your parent(s) and the debt is part of their debt profile. A parent signs the promissory note not the student. As a parent, I would say, before you send any acceptance letters to any college make sure you have your finances for all four years figured out and if your parent(s) are involved they are on-board for the full four years. Remember the degree you earn is from the college you graduate…there is nothing worse than cobbling together a year or two and having to transfer because you don’t have the finances in place for the long haul. If you have ANY scholarships…read the fine print to understand how many years they are renewable and what the terms are for maintaining the scholarship.</p>

6

<p>Debt of 60k is way too much for an undergrad degree. Furthermore, as has been pointed out, you’ll be only able to take federal loans in your name (5500, 6500, 7500, 7500 respectively, by year). The rest will be taken out by your parents, possibly with you as a cosigner, possibly not. </p>

<p>Do you plan on going to graduate school at all? If so, think about how much debt that is going to add on top of that. Go to an undergrad school that is going to provide you with minimal debt. It is not worth 60k (at least!) in loans. Not even close.</p>

7

<p>Honestly, I don’t think it’s worth it going into that much debt, especially if you plan on going into grad school.</p>

<p>I almost wish I was in dSharpMinor’s shoes. Of the schools I got accepted to I would rather go to Carnegie Mellon’s SCS, but it would cost me about $30,000/yr in loans. Michigan on the other hand will only cost me $5,000/yr (I got very lucky with scholarships and grant aid for being OOS).</p>

<p>Michigan is a great school, though. So, it may be worth it depending on your other options. What other schools were you accepted to that would be cheaper?</p>

8

<p>Write the letter. You’ve got nothing to lose; it’s not like you’re bluffing. I don’t know your grades and scores and I don’t know how other colleges within the University of Michigan work, but I desperately wanted to go to Michigan and wrote a letter to the LSA (specifically, individuals in the scholarship office) outlining family financial issues and emphasizing how I’ve always wanted to go there but would have to bypass because it’d be fiscally irresponsible. Just this past week I received a letter in the mail from the LSA offering a $15,000 scholarship (I’m out-of-state, by the way); I was pleasantly surprised. At the end of the day, my family has still decided to bypass Michigan based on financial reasons, but like I said, writing the letter is worth a shot!</p>

9

<p>taking on debt, when there are other options, for an undergrad degree? is dumb.</p>

<p>read this; [Faulty</a> directions to elite learning | StarTribune.com](<a href=“http://www.startribune.com/opinion/commentaries/146482775.html]Faulty”>http://www.startribune.com/opinion/commentaries/146482775.html)</p>

<p>'nough said.</p>

10

<p>Thanks for sharing that article. People on the financial aid part of this site really need to read that.</p>

11

<p>I cannot figure out if his parents can’t contribute much, how he is only coming up with 65-70 grand in debt if he is oos. I figure the true cost of 4 yrs to be $200,000-$225,000 when you figure in room and board. Did UM give you a nice package or are you planning on sleeping in your car??
Michigan is a great school, but it would be a no brainer for me to go elsewhere and not take on substantial debt.</p>