<p>I was wondering if I could get some opinions from other parents. Should I get the parent plus loans each year or should I get one of those alternative loans that a student can get with a co-signer. Which would be the smarter move? I am totally overwhelmed about this whole process. Got a parent plus loan for my son's first year, last year. My 22 year old daughter has decided to go back this fall. Still have a sophomore and 6th grader at home. We have an EFC of 5566 not eligible for any grants. Both children are wonderful but unfortunately "average" students. Please tell me that after 4 years and a balance of probably approximately $50,000 owed (for the son) it can be done. Somedays I am so worried and other days I feel like oh-well, what can you do, it's only money! Looking forward to any advice. Thanks.</p>
<p>Can you clarify this: "EFC of 5566 not eligible for any grants"</p>
<p>My son's attending Ohio University and his financial aid officer said that to be eligible for most grants a student's EFC must be at or below 4150. My EFC went down on my current FAFSA with my daughter going back. Last year it was 10769. I thought maybe I'd see a little bit of help, but none. He got a $2625 fed. dir. subsidized loan last year and this year $4500. My daughter's going to Miami of Ohio (Hamilton branch) and she received $3500 fed. direct subsz.loan. She will not have room and board fees. I was checking to see if this sounds pretty normal to other parents out there and wanted to make sure I was making good decisions regarding the loans. I guess my kids would be first generation to attend college. My husband and I only have high school degrees.</p>
<p>This is small consolation, when I look at the data for Ohio Univ it appears that they meet "full need" for very few students. Here is their data from 2005-2006:</p>
<p>(First number is first-year students, second is total undergraduates)</p>
<p>Need-based aid
Students who applied for financial aid 87% 71%
Those determined to have financial need 53% 50%
Students whose need was fully met (excluding PLUS or other private loans) 16% 16%
Avg. financial aid package (% awarded aid) $6,318 (52%) $6,870 (48%)
Avg. need-based scholarships or grants (% awarded aid) N/A (22%) N/A (19%)
Avg. self-help aid, such as work study or loans (% awarded aid) N/A (44%) N/A (42%)
Avg. need-based loan (excluding PLUS or other private loans) N/A N/A
% need met (of those awarded need-based aid) 48% 52%</p>
<p>Non-need-based aid
Avg. merit award (% awarded aid) $3,007 (19%) $3,755 (11%)
Avg. athletic scholarship (% awarded aid) $13,074 (2%) $13,755 (2%)</p>
<p>Award type<br>
(First figures are First-year freshmen, In-state; Second figures are First-year freshmen, Out-of-state; Third figures are Total undergraduates, In-state; Fourth figures are Total undergraduates, Out-of-state)</p>
<p>Avg. need-based aid award (%) $4,541 (47%) $3,949 (30%) $5,691 (44%) $5,048 (27%)
Avg. need-based gift aid (%) $4,101 (23%) $2,993 (13%) $4,263 (19%) $3,003 (11%)
Avg. need-based self-help aid (%) $2,833 (45%) $2,788 (30%) $4,062 (42%) $3,990 (26%)
Avg. need-based loans (%) $2,659 (49%) $2,641 (30%) $3,870 (41%) $3,861 (26%)
Avg. non-need-based gift aid award (%) $2,999 (41%) $6,169 (43%) $3,518 (22%) $5,215 (29%)</p>
<p>As far as which loan to get, I'm no expert, but I do know that it's the parents who will be held responsible for the PLUS loans, no matter what your agreement with your kid might be. ;) I'm not sure having your child co-sign changes that very much, assuming a kid is more likely to default on a loan than a parent. I assume the terms on PLUS would be better too. </p>
<p>I'd urge my kids to try to get Residential Advisor (RA) positions; that could take some of the cost of housing out of the equation.</p>
<p>At least you've got your kids in good, affordable schools! It is a nightmare isn't it?!</p>
<p>A very long nightmare. Thank you for listening. I read somewhere on one of the financial aid websites about lowering some of the costs with the RA position. I will discuss this with my son. You're right about the loans, either way I'll have to co-sign for him so probably another parent PLUS loan is what I'll get. I have two more to look forward to in the future. I don't know weather I should try one of those college savings plans for the 6th grader or just worry about paying for the two oldest right now. Hopefully with the last two, there will be some more academic help. We now know how important those grades are early.</p>
<p>True! Keep bugging them to keep their grades up. That's their best bet for money. Also, if you are really concerned about your financial aid package, you should call the office there and talk with them about it. I would. (My son applied to OU and every dept was so nice there.)</p>
<p>There are plenty of threads on CC about how to maximize scholarships for students. Keep them in mind for the 6th grader--but basically, great gades, great test scores and find a college that wants you really bad.</p>
<p>I'm in the student lending business. You should always have your children get the most they can in federal loans. The maximum amount they can borrow changes every year and isn't that much, but the rates are the lowest available for unsecured loans to people with little to no credit history. After exhausting federal loans, look at PLUS. The rate for PLUS loans is 7.9% if the school is on the direct loan program and 8.5% if the school isn't. (The rate is supposed to be the same for both but Congress goofed up when they amended the law a few years ago.) You may get a better rate than this with a home equity loan, but PLUS loans are unsecured. Private loans (also referred to as "alternative loans" should always be a last resort. They are usually variable rate and may have high fees. Know what you're getting into if you get a private loan.</p>
<p>SmithMom is right -- you might find this article interesting:
<a href="http://www.insidehighered.com/news/2007/07/16/barnard%5B/url%5D">http://www.insidehighered.com/news/2007/07/16/barnard</a></p>
<p>I really appreciate everyone's help. The article was very interesting and helpful. Somedays I feel I'm learning a lot about this financial aid subject and other days I feel really brainless. Smithmom, the federal loans you talked about............are those only awarded to you after you fill out the FAFSA and receive your award letter from the school? Like his federal direct subsidized loan he got? I'm assuming there's no other ones out there to apply for on your own. I look forward to reading all your advice. I'm going to have to make that call today or apply on-line for the PLUS loan. Going to take a big, deep, breath and say "oh well" it'll be fine!!</p>
<p>pb&j: I forgot to tell you that the best web site for financial aid info is <a href="http://www.finaid.com%5B/url%5D">www.finaid.com</a>. In case you didn't know about it.</p>
<p>Yes, you have to fill out the FAFSA to receive a federal loan. For undergraduates, the federal loans are either direct loans or Stafford. Direct loans started during the Clinton administration and are funded by the federal government. Stafford loans are funded by banks, credit unions and other lenders. Schools offer one or the other, not both. The rates and terms are generally the same, but with Stafford loans, the lender may pay some of the fees and offer a reduction in the interest rate if you make a certain number of on time payments or pay by electronic fund transfer.</p>
<p>Re: the RA jobs...yes, the student usually receive room/board as part of their compensation. HOWEVER, the kids need to apply for those jobs and not everyone gets them. So...don't count on your child getting an RA job because that just may not happen. More and more kids are applying for these jobs as the costs become higher for a college education.</p>