<p>By filling out the FAFSA, you will likely to be entitled to $5500 in unsubsidized Stafford loans in your own name. Your parents can apply for PLUS in whatever amount they need. If they are not considered credit worthy for the PLUS and are turned down you can borrow another $4K in Stafford money.</p>
<p>The interest rate for PLUS is probably higher than what they would pay if they can borrow from HELOC. However, if their credit card debt if high, they may want to use HELOC money for that and borrow PLUS for whatever they need for your school loans. This is a good time for them to look at where they can pay off their highest interest loans and get the lowest interest for what they owe.</p>
<p>Your college will determine if you are entitled to any financial aid. There are some schools that may consider your family eligible for aid, and may give it. That is something you need to check out with your college. The first step is almost always the FAFSA, however, and then their own app or PROFILE if they are not a FAFSA only school.</p>
<p>I’m curious, with such highly educated parents, why did they not set aside money for your college education? A aged-based 529 plan would be in pretty decent shape right now? I’m just a little befuddled that a family with one kid in med school already, another headed into college and who obviously live in a (probably) nice home (befitting a doctor, of course) would not make plans for the future of their kids? Maybe your folks are expecting a windfall inheritance?</p>
<p>^ With over a million bucks in debt, 20% of that on credit cards, I don’t think long-term financial planning was their long suit. Of course, dad’s disability might have thrown a serious crank into the works, if he’d been bringing home the larger part of the bacon. If he’s been on disability for, say, a year or two, they might have fallen into the trap of putting their mortgage payment on the card. Interest on top of interest.</p>
<p>Frankly, I’m still wondering how a family amasses $200k in credit card limits – I mean, without being in the billionaire range. To this simple middle-class geek, it’s boggling.</p>
<p>OK…here is the answer to the OPs original question. YES…contact loan companies now. It sounds like he/she has already done so.</p>
<p>And my guess is that your FAFSA EFC will far exceed $35k…and well the Profile is used to disperse institutional monies which, quite frankly, have probably been dispersed. BUT as cpt pointed out above, the Stafford Loan will be available to this student.</p>
<p>Another thought…how about deferring this coming year of school…I don’t know if Duke allows deferrals for enrollment but many schools do. If the OPs family can pay off the credit card debt in 14 months…it would be ALL PAID OFF by the time the student enrolls in fall 2010. Then the family would have $14,285 a month (that is $200,000 divided by 14…and I’m not including any interest on that credit card bill) with which to pay college bills.</p>
<p>Here is another thought, why not re-apply to other schools that offer merit aid for 2010. My daughter was offered a full ride to a nice LAC a few years back. Their claim to fame was the ability to place 100% of students into medical schools (I don’t know how they calculate that), but it is one of their big focus. We met students in the same program who gave up schools like Brown, Stanford…for a full ride at this LAC because they wanted to save money for medical schools. If OP could get into Duke, he/she could probably get a nice merit aid some where.</p>
<p>The OP was admitted to Duke ED, and didn’t bother filling out financial aid forms back in December. I am now wondering if the OP’s parents realize what’s up.</p>
<p>I hope the OP will read “The Millionaire Next Door” to get a bit of an education on how to build wealth.</p>
<p>The authors say their research shows that as a group, physicians are generally poor money managers; they are not good at accumulating wealth but are good at accumulating the appearance of wealth… by overspending. OP’s parents may be a textbook case of this.</p>
<p>I think the title of the thread sums up the OP’s situation exceedingly well.</p>
<p>No one is being “mean to this kid”. In fact, I actually feel badly for the kid. It seems that he/she was totally in the “dark” about the family plan to pay for college. But the kid asked for opinions and is getting answers that perhaps are not what they had hoped to hear. It’s not being “mean”…it’s stating opinions from another vantage point than the OPs family.</p>
<p>I honestly hope the family works this out. I have to wonder how they expected the college bills to be paid. It’s JULY. Bills are being sent. This kid was accepted ED to an expensive but wonderful private university, but did not apply for financial aid AT ALL. If aid was a consideration, the family has missed the boat on this one. I hope they can resolve this payment situation. Someone has to pay this student’s bills. With income as high as the OP states, it is highly unlikely that a large need based aid package will be forthcoming and the deadlines for merit aid have LONG since passed.</p>
<p>ok. first off, I was looking for constructive ways out of the situation - i consider these borderline attacks against my parents unfair and harsh, especially because none of you know what happened or why we’ve accumulated a large debt. frankly, I wanted it that way. There’s no need for you to know - I was posting because I wanted helpful advice out of a tough situation; how and why we got here is irrevant. I don’t care for opinions or points of view regarding my circumstances; I was looking for help. Thank you to the posters that suggested real ways of approaching this - posters that answered my questions.</p>
<p>PEA and the rest of you that insulted my parents - $200,000 in debt accrued during the time my father was out of work unexpectedly. He was involved in a lawsuit and we subsequently needed lawyers, all without any real income coming in. My brother was also approaching college. My mother hadn’t started her residency yet, and bills piled up. My parents weren’t irresponsible. They weren’t incapable of looking at the big picture, or obsessed with painting a picture of wealth without the means. We hit a hardship. We are lucky enough to be where we are. We bought a house a few years ago, that’s why there’s a hefty sum still being paid in mortgage. I guess I can understand the initial reaction to $200k in debt with a huge mortgage -but attacks without backgound information or the whole picture? really?*</p>
<p>In any case, for the people that actually cared to help:</p>
<p>I was approved for a 35k loan with an interest of 6.92%. It’s a private loan. If I take it, my parents are going to start payments of principle/interest; I’m not deferring anything.
I was also approved for stafford and federal plus - but i’m waiting on certification. So hopefully, I won’t even need the private (it’s variable interest).</p>
<p>What’s so funny about someone taking a year off to work? Why is that funny? Why is it funny that someone might have to work to put themselves through college? You don’t, you’re lucky, it’s not funny that other people have to do that.</p>
<p>From another thread you posted
</p>
<p>Why do you think it is funny to blow off the financial aid deadlines? Why is that funny? For some people financial aid is serious business, they can’t go to school without it. For you it’s just funny that you didn’t feel like applying for it.</p>
<p>You posted an incomplete story and then yelled at everyone who gave you the best advice we could. You say your story wasn’t anyone’s business? You made it our business by posting your story. What did you think would happen when you gave such an incomplete story? Or maybe you think that is funny too. Maybe it’s just terribly funny to yell at people and make them feel bad.</p>