<p>is been a while since I've posted. Things with my D are going great and she is in her last year of College.</p>
<p>I need your guidance and opinion for my Husbands Daughter. Please any feedback is appreciated.</p>
<p>My Husband declared bankruptcy before we met and married about 8 years ago and now we have a dilemma. His older daughter is going to college and we have applied to every private institution for alternative loans and have been denied. I can not cosign for the loans since i just took one for my daughter.</p>
<p>Anyone encountered this situation? we desperately need the money or she wont be able to start this semester.</p>
<p>Thank you in advance for your responses... </p>
<p>From what I understand, a bankruptcy 8 years ago would not affect federal PLUS loan eligibiliity. They are quite generous in screening applicants. If your DH was turned down for PLUS, he needs to find out why and what he can do to have it reconsidered. It is not the bankruptcy that is the issue.</p>
<p>If you and your husband cannot afford to borrow, or cannot get loans for the college costs, then your stepdaughter either has to find alternative fund sources or go to a less expensive school, such as a local state school that can be covered by Stafford loans and a part time job. If your husband was denied by PLUS, then she is eligible for an additional $4K a year in Stafford funds, which gives her up to $9500 in those monies if she is a freshman. A few thousand from your husband (which he would have to be paying for that loan had he been approved), a few thousand from others, and a part time job could bring her up to $20K. If she works and saves for next year, she might be able to go away to a state school with the proceeds, loans and some support from both parents and others.</p>
<p>thanks so much for all your suggestions and advice. The only loans that we applied to were private loans and he was denied and they claim to be due to the bankruptcy. She has a younger sibling so that would not work and the family, well is a mockery of a situation with them and they are not willing to extend a hand even if its for just the first year. The bio mother does not want any involvement with her kids, so there goes that idea. At this point, we have opted for community college and a public university which we have applied and gotten accepted during the time i posted this thread and now we are waiting to see about the stafford loan and other financial aid that those schools may provide before we ask for the parent plus loan. I’m just overwhelm with the whole situation.</p>
<p>Hi Judy~
You may also consider going to your DD financial aide office, and asking if the financial aid package could be reshaped given your rejection for a loan. As it is the senior year, having her attend another college/earning her diploma…may be an impetitus for them to make it work for “both” of you.
Best of luck to you and your family.
~APOL-a Mum</p>
<p>Apply through PLUS. They will not hold the bankruptcy against him. It is a relatively painless and private process and can all be done in the privacy of your home with a computer. You need to fill out a FAFSA form first. If he is denied, the student will then be eligible for an additional $4000 in Stafford money on top of the regular Staffords. If the student is taking out Staffords, a FAFSA should already have been done.</p>
<p>She is in her final year of school, so she would actually be eligible for an additional $5000 in unsub loan if the PLUS is denied. Hopefully, they will be able to make it work … if your H is turned down for PLUS, how much more than $5000 would be needed? If it’s not a lot, she should visit the financial aid office … even public U’s will sometimes have a bit of discretionary funding to help get kids through the last year. If it’s a lot more than $5k, they may not be able to help out that much, but it is work a try.</p>
<p>I think that Op’s daughter is a senior and her stepdaughter is just starting out. Stepdaughter would still be eligible for unsubloans if you are turned down for a plus loan. Perhaps you can swing a monthly payment plan for the balance.</p>
<p>If the stepdaughter is just starting out, this is the best time since you can’t do this any sooner, to go over what the money situation is, and what all of your can afford in terms of a loan burden. Get out the calculators and do some sample numbers of how much you and DH, and your stepdaughter will have to repay on a monthly basis. </p>
<p>This may not be the best options for the young woman to make. As a stepmom, it is always shaky ground to be the one to make these pronouncements so the information should be presented very nicely, matter of factly and with understanding with no conclusions or opinions. Let them come to their own conclusions, but present the household budget situation as accurately as possible. Maximum Staffords come to about $30K if they are borrowed annually without the additional amounts a student can get if the parents are turned down for the PLUS. In the case of the denial, the additional amount is upwards to another $24K approx with accrued interest for a whopping total of over $50k over 4 years. Then if Dad borrows more, it really increases the ante. </p>
<p>Are there local options for the young lady? They may be more palatable financially and perhaps some sweetener like a car can be thrown into the mix.</p>
<p>cptofthehouse brings up some excellent points. You gotta sit down as a family and talk this out. It is also not to early to bring the little sister into the conversation so that she can be proactive and put her self in a better position to cast a wide net for merit money.</p>
<p>One of the biggest hurdles tht OP may have to overcome is the possibility of the stepdaughter wanting the either the same or comparable college experience that the daughter had. I don’t know how long Op has been married (I think it has been within the last couple of years). </p>
<p>I know from previous postings that OP has made a lot of sacrifices to make college happen for her daughter. Unfortunately, the only thing that kids see is that you did this Jack, now you should do it for Jill. With a third child coming down the pike, Jane is going to also want a comparable situation.</p>
<p>At the end of the day, all you can do is say that as a family we are going to all roll up our sleeves and help each other get through college. This means every one working, cutting back on non-essentials, savings and kids taking loans.</p>
<p>As a family who went all out for Jack1, we realized that it was a financial mistake to do so. Things happened in the next few years that made it clearly unwise to do the same for our other Jacks. You don’t want to perpetuate a mistake that was made. That your husband has already undergone a bankruptcy and the family is still getting fall out from it really changes the the decision making blocks. Sometimes you can’t do for the other kids as you did for the first, and sometimes subsequent kids get the goodies that the older kids did not get. I think my younger ones got mellower, more experienced and less stressed out parents. There are benefits to being the younger ones as well as disadvantages. You cannot give everyone equal treatment because the situations differ over time.</p>
<p>True…but there is often a different dynamic going on when there are step-kids. If when it’s their turn to go to college, and the money is not there, they may not be as accepting than a younger child from an intact home. </p>
<p>That said, since loans would be involved for all 4 years of this step-child’s education, it may just be economically unwise to take out loans for all 4 years…especially with another step-child after that. If she goes to a CC for the first 2 years, and then commutes to a state school for the next 2 years, minimal loans would be needed. Maybe only Stafford loans.</p>