<p>(Disclaimer: This is not a "chance me!" or "select a college for me!" thread)
All right College Confidential, I honestly am screwed up:
I applied to the following schools for the fall 2014 term:
Texas A&M University
University of Texas at Austin
Georgia Institute of Technology
, was accepted into all of them for engineering, and qualified for out-of-state tuition for all those schools at the time I sent my applications.
However, by an appeal and legal loophole, I was able to qualify for in-state tuition at UT (didn't try to appeal for A&M, and Georgia Tech would have been impossible). This, unfortunately, occurred well after I had sent my FAFSA and been offered my financial awards. Therefore, UT did not consider me for state grants or scholarships, and the money for everything has already been distributed.
I have an EFC of 0, and Austin only offered the Pell Grant, student loans, and PLUS loans. That's it. According to the office of student financial services, this award is final and <em>will not</em> change.
For that reason, a philanthropist at my home town offered me 0% interest rate loans and a flexible payment plan... however, even with that, I'm looking at graduating with a $60k+ debt -after- living frugally, minimizing costs, and acquiring summer jobs.
I attempted to talk my mother into enrolling me at the local community college, but she outright refused and told me to accept the philanthropist's offer. An alternative would be to take a gap year at Michigan and apply to UM-Ann Arbor by the end of this year, but my parents and I hardly have the means to live over there for an entire year, and they certainly wouldn't support this choice.
CC, what should I do? Should I believe in the degree's worth and take the philanthropist's offer? Should I be unorthodox and take a gap year, despite the clear obstacles that I will face (including my own parents)?
Thanks.</p>
<p>can you ask UT if you will get a better pkg next year? If so, then you wont have to borrow as much.</p>
<p>They told me that, if I didn’t receive an award this year, I wouldn’t receive it for the next years.
I have, however, been waitlisted for the B-On Time Loans, but they’ll begin awarding those next semester.</p>
<p>None of these sound like good options. Do you actually live in Texas now? Seems like you can only afford to take a gap year and reapply to various in-state options next year, or attend community college and transfer. </p>
<p>Community College is, unfortunately, not an option - if I suggest it, my parents will probably throw me out of the house or something.
And yes, I do live in TX.</p>
<p>Fredjan, DS is a current EE/CS double major at UT. He is just finishing up his sophomore year and has been hired for a well-paying internship this summer. He should clear 9-10K. Also, DH and I are UT alums. Way back then, there was a living opportunity called co-op housing. While I have no direct experience, I recall it being much cheaper than a regular dorm. The students all pitch in doing chores to make it work. </p>
<p>You might be able to swing it with less debt than you think.</p>
<p>@PokeyJoe
Ok, I’ll pull up the financial shopping sheet</p>
<p>Estimated Cost of Attendance $ 27,360 / yr
Tuition and fees $10,214
Housing and meals (On-Campus) $11,456
Books and supplies $750
Transportation $1,490
Other miscellaneous educational costs $3,450</p>
<p>Net Costs $21,630 / yr</p>
<p>I don’t own a car, so the transportation expense is out (or negligible). Furthermore, I don’t plan to pay for books (I’ll seek the cheapest and have my mother pay for them), and it’s unlikely that I’d spend almost 3.5 grand on other costs (expecting 2k at most).
If I live in the co-op instead of in the dorm, the cost would go down by $5,109.
Therefore, in total I’d be paying:</p>
<p>Tuition and fees $10,214
Housing and meals (Co-Op) $6,347
Other costs $2,000
Pell Grant -$5730
Net cost, after aid: $12,831 per year.
In total, I’d be paying $51,324 for the four years (let’s just have it at 52k), but that is assuming I don’t get any summer jobs, internships, department scholarships, or co-ops (which I will try to do everything possible to obtain).</p>
<p>Fredjan, you are not in a traditional situation here. You have a zero EFC, which means your parents are not able to pay much towards your education or your support. Are you in the US on your own and are entitled to in state status at UT due to graduating from a Texas high school despite not having parents here in Texas? Was this the hang up? A lot of states/colleges that have put in the loophole for in state if a student or parents are in state for a designated time period and the student has graduated from a high school in the state, are finding all kinds of situations that this exception was not intended to cover popping up. Yours might well be such an example. Since these things are not time tested, it’s hard to say where this is going.</p>
<p>Where will your parents be living while you are in college? Are they US citizens? Are you getting instate tuition due to “Dream Act” type of exceptions even as a citizen? Clearly, you are a citizen or permanent resident to get PELL and the full amount of Direct loans. </p>
<p>The reason it’s difficult of anyone to make any suggestions to you is that we don’t know important essentials here in order to give advice. What are your alternatives? If your parents lived in the US or you have someone who has been your guardian, where you have been living, the ideal thing for you to do is to continue living there, if possible and go to a community college or local 4 years school and continue commuting. Pell and loans and if you work, should take care of the tution and other costs, and maybe even something to pay to your guardian towards living expenses. Still you will get out fo there with about $30K debt. </p>
<p>AT UT, you will not only owe that $30K you will owe the “philanthropist” at least $60K, for a grand total of $90K and you are from a family with little means. You can’t expect help from your parents in paying for this. I have no idea what kind of collateral this philanthropist wants and what kind of trouble you and your family might find yourself in if you can’t make payments as agreed upon. Or if something happened to you. Things often don’t work the way one plans. The drop out rate for engineers is very high. It’s one thing if a student takes out this kind of loan from a legitimate business that is run by firm ground laws (and it’s still a problem as much discussion about student loans is out there) AND when the parents are on board and willing to make this happen. If you are an 18 year old kid weighing these options,. I just don’t see how you are able to make a wise decision. We can’t see the whole picture enough to really give advice that is safe. It’s not reassuring at all to me that your parents who aren’t the ones signing for the loans, can’t help you pay for much of this are the ones urging you to take on all of this debt. If they were taking it on their heads and were able to do so, it’s a whole other story. They are putting a lot on a young adult. </p>
<p>Frankly, if you can continue living where you are, it’s probably best that you go to a local school and keep your debt in the $30K range. If your parents will take the loans from the “philanthropist” and sign all of the reassurances since they are so hep on you taking on that debt, that’s one thing but to urge someone else to do so is foul play, IMO. So what I am suggesting is the most risk adverse. You have less on the line if things do not work out in your school plans. Your parents will be upset, but they aren’t even around, they can’t pay, and so IMO don’t have the say. </p>
<p>It’s a huge financial commitment to be sure. In the end, only you know what you can handle.
I think working year-round would need to be a reality for you to start.</p>
<p>DS does have a 30+ hour EC and has been able to still keep his grades very high. It can be done. He doesn’t sleep much though. </p>
<p>If you were my student, I’d encourage you to attend but, with an aggressive plan to find a job ASAP.</p>
<p>The total amount of debt would be $60k, not $90k.
As for the philanthropist: He’s a UT alumnus and father of a classmate of mine.
As for my parents and what not: It’s not just them encouraging me to go into debt. It’s my whole family.</p>
<p>
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<p>Will they put their money where their mouth is? I.e. will they borrow the money to pay for extra cost of the college they want you to go to? It is easy for them to spend someone else’s (your) money.</p>
<p>$60,000 in debt at graduation may be doable if you graduate in an in-demand engineering major when there is not an economic or industry downturn. It is riskier than no debt, or debt no more than the federal direct loan limit ($27,000). You have to be really sure of graduating in a marketable engineering major without needing any extra semesters, as there would be no room for error here.</p>
<p>Of course, you also need to check if there is space in the low cost student housing co-op.</p>
<p>With a zero EFC, there isn’t likely any money coming from the parents. And are those family members putting their money down as they run their mouths? I don’t think so. </p>
<p>Is health insurance required? I don’t see that in your numbers? You are also assuming your are going to get that low cost student housing coopp. Costs are likely to go up and things happen, you know. Like an abscessed tooth, or other disaster. Your friend’s dad might change his mind, die or hit a down turn and decide not to give the money any point in time. </p>
<p>How much have you saved up from jobs in the past? Do you have a job? A lot of big plans in the future without much doing in the past and present. </p>
<p>However, in YOUR situation, this might be the best alternative. Somehow through some legal loophole, you are getting instate rates at the state flagship which is a great school. Something doesn’t quite smell right with your situation which is my guess why the school isn’t jumping through hoops to give you their own money, and isn’t there some Texas low state low income fund? For some reason you don’t qualify for that. You missed deadline, something isn’t exactly standard here. I suspect out of country parents that are getting the benefit of in state tuition for you that they would NOT be getting if they lived in any other state. I don’t think they pay state income taxes–are they Texas residents? Yet you are a dependent under FAFSA? They can’t apply for PLUS for loans…they aren’t citizens? because if they could, even if they were turned down you could get an additional $4K over Direct Loans. </p>
<p>If you do this, as i suspect you will, II suggest you at least take out the subsidzed Direct Loans to which you are entitled and bank the money. If you keep it in an account. You won’t have to report it as assets for FAFSA if you keep that money there and not dip into it. In fact, I 'd take out he whole amount even unsub and bank it so that it’s there for emergencies and if your benefactor bails in the future, because I don’t think UT is going to cough up penny one for you if they can help it. If you parents can apply for PLUS, you can get even more, if they are turned down. I suspect they can’t even do that as they may not be citizens. </p>
<p>do not let yourself be influenced by family/friends who don’t have the means themselves to borrow/lend/pay. If they knew what they were talking about, they wouldn’t be in their situation.</p>
<p>these people have no skin in the game. who cares what they think or say.</p>
<p>take a gap year and reapply. dont take any classes in the meantime. </p>
<p>I agree with @mom2collegekids. A gap year to requalify for freshman scholarships might be the best alternative. Also appeal to TAMU this time!</p>
<p>Are you in-state in Texas?
Since you’ve been reclassified as a resident and Texas admits based on rank, are you in the top 7%?
If so, you risk <em>nothing</em> if you reapply as a reclassified resident. If you’re top 7% you’re in. NO ifs or buts or whats. And that time you’re classified as in state for tuition purpose and you keep that all 4 years.
You can apply for the Spring as a freshman, the deadline is Oct 1. You have to be careful not to enroll in another college, even taking one community college class. You can work, travel, even take community education classes such as First Aid…
<a href=“http://bealonghorn.utexas.edu/freshmen/admission/deadlines”>http://bealonghorn.utexas.edu/freshmen/admission/deadlines</a>
<a href=“Texas Residency | Undergraduate Admissions | The University of Texas at Austin”>Texas Residency | Undergraduate Admissions | The University of Texas at Austin;
(Note that by being considered in-state, you’re eligible under the 7% rule whereas non residents aren’t.)</p>
<p>What are the philanthropist’s conditions? Will there be something on paper to protect both him and you? Would the offer still be on the table to help you if you applied for Spring admissions?</p>
<p>Spring admissions may not qualify the student for scholarships since it is the same school year.</p>
<p>the student needs to completely reapply…he’d get texas aid as well.</p>
<p>He’d need to ask UT directly: do freshmen who apply for the Spring get the same scholarship opportunities as freshmen who apply for the Fall? (OP, you’ll have to specify Fall 2015 vs. Spring 2015, graduated Spring 2014)</p>
<p>AFAIK, Texas aid is a loan, so the philanthropist’s offer (which I assume is 0 interest) would be a better deal.</p>
<p>Not top 7%, though it might be interesting to apply for the Spring semester.
Just looked the deadline up in ApplyTexas, and it’s October the first. That’s not bad, though I’m not sure if they will indeed offer the same financial aid.
Will contact them as soon as possible.
Re: Loan terms, the man pretty much told me “You’ll pay me as you’re able to.” There have been no formal documents, but the family is known locally for providing aid to students in financial hardships.</p>
<p>Another concern is what guarantee do you have that the philanthropist will loan you the money EACH year? What is the plan if he changes his mind? It seems very odd that there is no formal agreement. Is he expecting a certain GPA or other conditions for continuing his support?</p>
<p>UT has made it clear that it is NOT going to be giving OP any of its money. Just federal entitlements and if he can get anything out of the state, that’s up to him. If the deadline is not over, he can apply for what state aid there is, but for many states, he’s missed the boat for next year. UT Austin’s admissions is tough enough that getting accepted in future years is not a given, in fact, could be an issue. Clearly, there is some issue at hand here about state residency, probably of the parents at stake, the OP has stated he is getting the instate rate due to a “loophole”, and I can guess what that loophole likely is. Whether he gets state money through the same loophole, he’ll have to investigate, but that may not be the case. </p>
<p>OP has PELL, Direct Loans and his parents can give PLUS a try if they are US citizens or permanent residents. He also has the offer from the friend’s father. That may be the best he can do, though financially, a local commuting school would make more sense. If OP does very well freshman year, he might want to look to applying to transfer to a private college that guarantees to meet full need even for transfers, and he might do a lot better in terms of aid. UT may well shut him down on financial aid. It does not guarantee to meet full need, and between the PELL and the Direct Loans, most of the tuition and fees are covered. That’s all a lot of the state schools, my state included will see is covered, dipping into their own coffers only in the very occasional stituation where someone’s tuition and fees are NOT fully covered by federal and state money. Food and living expenses are not up to the college to pay, is the way they look at it. Live at home and commute to a nearby state school if your family can’t afford to pay for those living expenses. Only those who are the most wanted by the schools, and get merit money get that covered. Many OOS publics won’t bother to try to cover the OOS tuition differential either as that’s one of the benefits they enjoy in getting OOSers; the extra money. Only if the student is a top catch that they really want to come to their school.</p>
<p>So going to UT Austin with a first year loan, and looking for other private options from full need met schools might be a good idea, especially those with a no loan policy. </p>
<p>For a zero EFC student to take out that much in loans is not a good idea, IMO, on the hopes that he completes a program with a known high weed out rate, and also if the benefactor backs out for any reason in future years, or if the loan paperwork when put in front of OP has draconian terms, it can be an issue. </p>
<p>I think there is alot more to this scenario that is a bit unusual, so it’s really hard to say what the optimal answers are.</p>