I’m going to be a senior in the fall at James Madison University. This is the first time that I will need to get a student loan and I honestly have no clue what I’m doing. I don’t want to mess up and be in debt for most of my life. This is my first time getting a loan since my other 3 years have been paid for already. I just got back my financial aid letter and it shows that I have $0 for grants, $5,500 for federal subsidized loans, and $2,000 for federal unsubsidized loans. I figured out my total cost for my last year of college and it should be about $36,000 for tuition and room & board. I’ve heard that it’s best to accept both of the federal loans so if I do that then I will still have $28,500 left to pay for college. Should I get this much in a private loan from somewhere such as Sallie Mae? Also do you think that I would not have to have a co-signer since I am 20 and have great credit? Also if anyone could explain how the federal loans work that would be great. Thanks to anyone that replies with advice!
Even with great credit you wont be able to get a loan without adequate assets/income. If you’re a FT student you likely don’t have the income.
Where did the funds come from for your first 3 years? Why did that stop?
Will your parents be willing to take out parent loans for you? What was your FAFSA EFC?
@flatKansas I completed 1 year of college credits while in high school (AP classes) and then my dad who is in the military gave me 2 years of his 911 GI Bill. My parents would be willing to take out parent loans. I was unsure if the Parent PLUS loans are better than getting a private loan or not. People seem to have mixed opinions about this online.
Others will have to chime in about the best loans to get. I know zero there, except that yes its your parents that will need to take out those loans (after you take out the 7500 student loans).
Can you share an apartment with a few roommmates to save on housing? Can you apply for some departmental scholarships?
It may be too late, but (since it sounds like you have had no loans until this point) contact the financial aid office to see if it is still possible to take your direct loan for the 2016/ 2017 school year. If you were junior status last academic year, and it is still possible to take out last year’s loan you would be able to take an addition 7500 from last year in addition to the 7500 for 2017/2018. This would lower the amount your parents would need to take in a Parent PLUS loan, or that you would need to take (and they cosign for) in a private loan.
Do you have any savings/ summer work funds that you can use to help reduce the loan amount you need to take? Can your parents help pay anything for your last year, can you get a job at school to help at least with books, spending money, and incidental expenses? Or are you looking to fund the entire amount with a loan?
It may be too late to apply for any departmental scholarships, they are generally limited for continuing students, and I know in my department those applications were due in March, and awards were announced in May.
However, it could not hurt to inquire with your department (particularly if you are a stand out student).
Overall the loan amount you are talking about is not more than the federal direct loan cap for a dependent undergrad. It is just figuring out the best options for funding your last year.
I’m not certain how this works, but I’ve read a lot about GI Bill dependents being eligible for in-state tuition at various colleges. Please be sure to talk to the financial aid people and veterans people at JMU to make sure you are being charged the appropriate tuition. Hopefully, your total costs will be lower than you predict. Also be sure to talk over your situation and see what other help they can offer.
Ask about work-study, too. Work-study jobs can pay more and offer other benefits than just getting a random job.
Ask your parents for help for your final year . . . Perhaps they have some ability to help foot the bills . . . or they are presumably able to get “Parent Plus Loans” for you. I doubt you’d be able to get loans for the entire bill on your own.
I hope you can get some good help with your last year’s expenses.
In post #5 I should have said “not much more…” although, I guess because you came to that amount after already calculating in the $7500 directly loan for 2017/2018, it is actually about $9000 - 10,000 more than the federal limit.
You may be able to cut costs through renting a less expensive room, forgoing the meal plan, packing lunch, and cooking at home, renting books, etc…