<p>I am a junior in high school, and the college process has <em>officially</em> begun. However, there's the money issue. My parents make enough money that I will never, no matter what I do, qualify for need based anything. However, they had made certain investments that were supposed to be sold around this time to pay for college, but due to the recession, everything is a little messed up. I'm looking at schools like Georgetown, Princeton, UPenn, etc--basically schools that give little to no merit aid. That's fine, but I was wondering: do you guys have any advice on handling the situation? I'm just not sure where to start to be perfectly honest. I don't want to be strapped with student loans, but would taking the loans out temporarily with the expectation that, as soon as the markets improve, the assets will be sold to pay them off quickly? I'm just honestly not sure what to do. At my school we don't have great college counselors, so I'm really at a loss for where to begin </p>
<p>You need to talk to your parents.</p>
<p>YOU cannot take out large loans…however, they can.</p>
<p>YOU are limited to borrowing the following amounts…</p>
<p>frosh…5500
soph…6500
jr…7500
sr…7500</p>
<p>Obviously, those amounts are not enough to cover $220k …which is how much those schools cost.</p>
<p>Are your parents aware that those schools cost about $55k per year? and the costs go up every year?</p>
<p>Ask your parents…</p>
<p>How much they can pay each year with their current financial situation.</p>
<p>How much they will borrow each year with the intention of paying those loans back when the market comes back. </p>
<p>If your parents aren’t willing to borrow the money, then you have a problem.</p>
<p>You will also need to apply to some schools as financial safety schools in case your parents can’t/won’t borrow the money when that time comes.</p>
<p>They seem very willing to borrow the money. The assets are significant, they were purchased for the explicit purpose of paying for college. And let’s say that we come up, say, 50k short, they said they would be willing to pay, out of pocket for a certain amount, but not the whole thing. Basically, I just don’t know where to start. I’d like to somehow find merit scholarships to at least pay for a bit–it would buy some goodwill, even if it doesn’t make much of a financial dent, and I don’t even know where to tell them to look to borrow the money–are there any low/no interest loans that we could get? If they were paid back in full before my graduation would there be any interest charged? I’m just a bit overwhelmed.</p>
<p>No you would not qualify for subsidized loans, which are a form of need-based aid. They can take federal Parent Plus loans, which have a current rate of 7.9% and payments can be deferred until you graduate. Interest will accrue during that time though and it’s likely they can find a better rate if they have good credit scores. Many schools have a 8-10 month payment plan that is interest free and a small annual application/processing fee. That may be one option if they’re planning to pay a portion out of current income.</p>
<p>I personally think the federal parent plus loan are a very good option. Credit worthiness is less strict than private loans and they can be deferred as long as you are in school at least 1/2 time. This way your parents can sell their asset at a later time when market has improved and pay off loan. Even though you dont qualify for need based aid, you still must fill out FAFSA in order to qualify for the plus loans. Also, now would be a good time to get a part time job while in school and for the summer and start saving money for some of your school expenses. Make it a priority. Look into applying for outside scholarships. There are tons of them and easy to apply.<br>
A few thousand dollars will really he</p>
<p>* I don’t want to be strapped with student loans, but would taking the loans out temporarily with the expectation that, as soon as the markets improve, the assets will be sold to pay them off quickly?*</p>
<p>They seem very willing to borrow the money.</p>
<p>the parents may be willing, but I don’t see where the student has indicated that his parents are willing to borrow.</p>
<p>My parents make enough money that I will never, no matter what I do, qualify for need based anything</p>
<p>Since you’re indicating that your parents make a lot of money, can’t they pay for a good amount of your college costs out of current income? Why don’t you ask them how much they can spend without touching their investment.</p>
<p>They are very willing to borrow the money. Just because they make too much to qualify for aid, does not mean that they can afford to fork over 50k a year out of pocket. Also, much of the barrier lies in assets that they placed in my name.</p>
<p>I’m very confused: I just stated in my last post that they were very willing to borrow the money as long as they have a clear payment route. Its basically a matter of getting temporary (very short term) loans.</p>
<p>Are these assets in a 529 account? If so, they will be considered parent assets for FA purposes. If you have parents that are willing and able to borrow, then you don’t seem to have a problem.</p>
<p>eb9811 dont be confused. Some advice often here on cc is more judgemental and punitive than helpful. Dont take it personally. Just take the advice that is relevant to your situation. As I stated earlier, look into the federal parent plus loan, it is a very good option for your parents to consider.</p>
<p>Your PARENTS should look into the Parent Plus loans and see if these are something they would be willing to take out to cover your college costs.</p>
<p>
</p>
<p>Agreed with others…where ARE these assets in “your name”? Are they available for your use for college costs or are they tied up in real estate or stocks (which could be sold) or are they tied up in a non-liquid asset of some type?</p>
<p>If they are in your name, perhaps considering using them for college costs is an option that should be discussed.</p>
<p>I would also suggest you look at some excellent schools where you might garner significant merit aid. While the Ivies do not give merit aid, other very fine schools DO give merit aid, and if you are a competitive admit for the Ivies, you just might get merit aid elsewhere.</p>
<p>Ah…sorry for the confusion. I misread a post.</p>
<p>So, as long as your parents are willing to take out a Plus Loan which will be paid back when they are able to sell the assets, you should be fine. </p>
<p>Right? </p>
<p>* If they were paid back in full before my graduation would there be any interest charged? *</p>
<p>Yes. Interest will get charged from the time your parents take out the loan. These are not subsidized student loans. Those are only for small amounts and for students who qualify for financial aid. Your parents will have the option to make payments while you’re in college, or to begin payments after graduation…however, interest will be charged the whole time.</p>
<p>However, if the assets can be sold within a year or so, that means that your parents will only have to borrow for one or two years’ of classes, and the interest accumulated by that point hopefully will not be a large amount. </p>
<p>Is there any other concern?</p>
<p>BTW…I didn’t ask if your parents could pay the entire $50k per year out of pocket. I was asking if they could pay something…which would lessen the amount that they would need to borrow. But, if they will only need to borrow for the short-term, then it probably won’t make much difference anyway.</p>