Spending Scholarship Money

Paying for College
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<p>the fed direct loans and the stafford loan are the SAME. they are NOT two different loans. there are NOT stafford loans and direct loans…they are the same thing. some people call them stafford loans (the old name) and some call them direct loans (the new name). they are the same.</p>

<p>stafford direct federal loans are unsub and sub. </p>

<p>You will ONLY possibly get:</p>

<p>5500 in fed loans divided into two semesters (2750 each)
an additional 4000 divided into two semesters if your mom is denied plus loans (2000 each semester)
MAYBE a small amount of Perkins loans, but you havent mentioned those, so it sounds like you didnt get</p>

<p>so, you were not given 2750 + 3000 in fed direct stafford loans for ONE semester. go back and reread your award. Maybe you were given 2750 + 2000 in fed direct stafford loans.</p>

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<p>Austin has shared her story and has given you very kind and wise advice.</p>

<p>She is right that if you are near the top of your classes and have a good SAT score, there will be many options for merit scholarships, but only as an incoming freshman.</p>

<p>@CollegeCrisis96, 3 of my children have been through this college application/decision process already. Please know that the first 3 had all gotten into their “dream” school, but in all 3 cases, we could not afford it. No matter what we did, we could not figure out a way to pay for such expensive schools. In all 3 cases, they went to the school that offered them generous merit scholarships. And do you know what? They all were extremely, extremely happy at the schools they went to and their education is top-notch, too. They each have said they are glad they didn’t go to the “dream” school, because they love their schools so much. They know now it was the right school for them. But they did have to get past that time in the process when they were sad to have to leave the “dream” school behind and consider the merit school.</p>

<p>Be open to a school that you can afford. One that rewards you for all your hard work in high school. You will enjoy that school, make friends there, and learn so much there.</p>

<p>Are there other schools that you applied to this past year that did give you merit scholarships and that are more affordable? Can you talk to their Financial Aid office to understand the FA letter you received from them?</p>

<p>$8500 + $8500 + $17,000 is a lot of money to come up with every year and it will go up each year. Honestly, that is so much money and not what could be made by working over the summer and a WS job. </p>

<p>Are there other in-state safety schools that the total cost that you have to pay (after grants, scholarships etc) is much, much less than $17,000 a year? Or even closer to being no cost or very little final cost, with the merit scholarships?</p>

<p>Think about the wise words Austin said. Be open to other schools that are affordable, that won’t make you worry because they are too expensive. School is hard enough than to have to also worry about finances constantly.</p>

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<p>What about the scholarships that were the original point of this thread? You said you had received, in checks directly from the sponsors, about $5000. If you have that, you’ll be able to pay a lot of your portion. You’ll also have work study. Don’t include that WS money in your calculations as you won’t have that money to pay tuition in Sept - you have to earn it. If you can pay everything in Sept, you can use the WS money to pay in Jan.</p>

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<p>NO. The stafford loan and direct loan are the SAME thing. You get $2750 per semester…that is ALL. You don’t get an additional loan amount as a direct loan. </p>

<p>So add in that $2750 and it sounds like you owe $8750 just for the fall semester…and that includes work study. You don’t get work study funds UP front. You have to apply for and get a WS job and earn that money. To be frank $900 a semester should be allocated to books, and supplies. </p>

<p>So, make that $9650 that you actually owe…and that is for ONE semester.</p>

<p>And you will either need a cosigner for loans in that amount OR you will need parents willing to take a Parent Plus Loan. Will your parents do either? Will they qualify for loans for four years?</p>

<p>You are looking at almost $20,000 per year in either private or plus loans totaling $80,000. Your full direct loan amount over four years would be about $28,000.</p>

<p>Grand total in loans…over $100,000 for undergrad only.</p>

<p>Again I say…this school is NOT affordable.</p>

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That’s the number I was looking for…the total amount OP is going to have in loans. Totally unaffordable and unrealistic (and then there’s law school after that?). </p>

<p>OP, change your course before it’s too late. </p>

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<p>The unrealistic parts are:</p>

<p>1) the amount of loans the OP thinks she has been given. she hasnt been awarded that much.</p>

<p>2) the amount she thinks she can earn to pay her shortfalls.</p>

<p>3) the thinking that ALL of her earnings will go to her shortfalls (they wont…she’ll have some unexpected expenses and some fun with friends.)</p>

<p>4) the amount of hours she can work while also going to school full-time AND get good grades.</p>

<p>The OP doesnt realize that as soon as she has a hiccup with paying, disaster strikes…she wont be able to register for the next semester, she wont be able to transfer to a cheaper school when she still owes money elsewhere.</p>

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<p>I’ve made my mind up already and I’ve decided what I’m doing from here on out. I’ve already contacted the FA office for clarification. Thank you all for your help.</p>

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<p>I didn’t see your very last post last night when I typed mine, so I do see now that you are back up to starting with $20k before deducting grants and loan(s). Realistically, how are you going to come up with 17k minimum per year or $8500 per semester – plus books and supplies? Even if you were able to scrape up enough for the first semester by overloading yourself with 2k in ore loan debt, getting more help from extended family, applying what’s left from the money from your 5k in scholarships that you haven’t yet spent, and working full time plus taking a full course load, what happens with the spring semester? You are going to be out of that school and it will be ALL over. You will find yourself at your local cc for the rest of your undergrad years because as a transfer student to a lesser expensive university you would not receive the school aid you are receiving this fall as an entering freshman. You may not even get your 1st semester credits if you weren’t able to make all of the monthly payments to the school on the payment plan because your transcript would not be released to any of other school that you would be transferring to. Then what?</p>

<p>I realize this is your dream school, but realistically, you are only going to get to live that dream for one semester and then what? Saying you will cross that bridge when you come to it is very unwise. Short of winning a lottery, you are going to find yourself up a creek without a paddle. Many students have dream schools, but through proper guidance and advice, they realize that attending a dream school is not a viable option.</p>

<p>If you take the wise route, you could have all of your undergrad schooling probably completely paid for at a lesser expensive school which would keep you on your path of becoming an attorney. Or, you could heed the advice of taking a gap year and work full time at 2 jobs to get some money saved up and apply for more scholarships which might get you through your first year in 2015.</p>

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<p>OP what is the FA officer telling you that weighs out more heavily for ‘it all working out’?</p>

<p>Many here have given you wise advice.</p>

<p>Seek out some guidance - is there a minister you can talk to? Most ministers know how to live on a budget, and could possibly give some unbiased help. Giving wise advice that OP may take more readily than a bunch of adults on CC.</p>

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<p>I think you still have some things that are confusing you about your award and what you will have to pay the university for the first semester. Either that, or you are confusing me (and others). Your school will bill you 1/2 the tution/fees (sometimes all of the fees the first semester), 1/2 room and board in August. You will get 1/2 of your full year awards to put towards that. So if you got a $5K scholarship from the school, you generally get $2500 show up in the fall. The PELL, you seem to get, is 1/2 the full awarded amount for that first term. I don’t know if the school has the $5500 Direct/Stafford loan in your package-I think they do, and that is split usually into $3500 sub (if you qualify need wise ) and $2K unsub, and again that is split in half. Your work study award would also often be split in half. So you need to make sure you are not mixing up the full year with the first semester. </p>

<p>So find out as closely as you can what the school will charge in August/Sept, and you then put those half year awards against that amount. You have to come up with the rest before registering for the second term classes at most schools. They are usually very strict about that, and if you don’t have a payment arrangement (for which they usually charge) there are late fees involved. Even with payment arrangements, the last payment often has to be made by the time you start you second term of classes. NO payment on that amount and you lose those classes at most schools. So, really, I meant it when I said if you don’t pay for that first term, there is likely not to be a second. So regardless of the amount, you have to get it paid. It isn’t going to just appear, you know. </p>

<p>In addition to what the school is going to bill you, you will need some things to take to school, a way to get to the school, and then books, supplies, some money for things like laundry, soap, shampoo, etc. Things come up. So you do need some pocket money too. Schools usually close the dorms over the holidays, so you may need money to get home. If you have a cell phone, computer, you may need some things for those electronics as well. OFten you must get health insurance waiver too–don’t take it for granted, you 'd better send the info on what you have, or you owe for that too. </p>

<p>It’s not whether the amount is “bad” or not in general, but whether YOU can pay it that makes it a problem. Are you SURE your grant is $5K a semester, not per year? Are you SURE that your room and board cost total is $30K a year? That you are not subtracting out your grant and then applying it again? The amount of $30K a year total for tution/fees, room/board doesn’t strike me as right, though I admit it’s possible. That’s on the high end for public colleges and the low end for private ones. Maybe an OOS public? FOr some reason I don’t feel very sure about your numbers. Not trying to cause you trouble, but I want you to clearly understand what your situation is and the bottom line of what you have to pay. </p>

<p>I also want you to understand that it’s not easy coming up with those amounts as a teenager, first time away at college. Your FWS will be good to put away for next term’s payment and for expenses as they arise like the laundromat charges, a meal not covered by meal plan, a little snack or drink now and then, some supplies as you need them, but $900 an semester is about $300 a month and that’s if you get a job to use the full amount, not always possible with WS. </p>

<p>So $2750 (half the Direct Loans), $2850 (half the Pell), you have $5600. If the school is giving you a $5K grant for the term, you are up to $10600. If it’s for the year you are up to $8100. If the total charge for the semester is truly $15K for tuition/fees, room board, then you can see what you have to come up with With the $10600 in your account, you need to come up with $4400. Remember you are only awarded $900 in work study for the term, and you likely will need that for other things, and should try to but about half of that towards payment of second term as you may not get those last paychecks in time to pay the first term anyways. Where are you planning to come up with that $4400?</p>

<p>Also, again, I hope that you have the amounts correct, in what you will owe per year and term.</p>

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<p>@collegecrisis96 There is nothing wrong with knowing what your options are. Or discussing in full. I think you will agree at least you have learned something useful so far. </p>

<p>I’m afraid that because money has been thrown at you, you think more will magically turn up, but as you can see from @cptofthehouse, you can and should plan where the first year is going to come from. The max you can likely earn, working 18 hrs at $9.5 = 680 less taxes so 450 or so take home pay. Any unpaid bill means no transcripts for when you have to transfer.</p>

<p>I wish you could see the wisdom of getting 4 years paid for. Its a sad situation you are in with the poor aid, but it doesn’t have to be like that, there is still time.</p>

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18 hrs of $9.5 is $171 not $680</p>

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<p>Do check my math too. What I’m trying to show OP is what the numbers are when things are on a semester basis and what she needs to get just to get through that first semester. I still am not sure whether the OP has the year and term numbers straight and is not double counting the Direct/Stafford loans. Remember, OP, that $5500 is your maximum for the year without a parent getting involved, not per semester and its split $3000/2500, subsidized/unsubsidized.</p>

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<p>I think Brownparent meant $170/week x 4 = $680/month?</p>

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<p>sorry to not be clear I was looking at per month. esp because she expects to go on payment plan and come up with the payment each month.</p>

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<p>Um…her take home pay will not be that amount!</p>

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<p>I know! read my post!</p>

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<p>Once again, thank you all. I have definitely learned some very useful information on here. However, I’ve went over my FA statement online (since it’s more clear on there than it was when I initially got it). I’ve gone over everything and all my options, and honestly, I am not willing to pay less money to go to a school I don’t even like/want to go to. I’m just not willing to let the money run my life like that. I’m going to do what I believe will make me happy. I’m going to pay what I have to pay to go to this school because the opportunities are really better for my area of study (trust me when I say that) and I believe I will really be open to make this work in the long-run. I have weighed my options, and the quality of education I’m going to receive at this school and the experience/connections is definitely worth every penny. I was able to find a cosigner and I’m looking into taking out private loans to cover what I need to. The last thing I have to get cleared up with the FA office is the due date for payments and the payment arrangement, which I will get sorted out on Monday. I’ll be able to make it work. As for you, please do not waste any time on me. You’ve all been a tremendous help and now there are tons of other students on here who could use the advice you’ve given me. Please keep helping students like me achieve their dreams. Whether it seems like it or not, you’ve all helped me with this process and you’ve made this a lot easier for me, and I will always be thankful and grateful for that.</p>

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<p>Oh you are letting the money run your life by the choice you are making. Do not doubt that. </p>

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Money will run your life, have no doubt of that. Many future dreams will be going up in smoke.

That cosigner realizes they may be paying back those loans, correct? </p>