Student Loans? Help May Be On the Way

<p>OMB payments 2007-6.3 billion
SAP payments 2007-7.7 billion
Guarantee Agencies 2007-877 Million
Estimated over billings of the USDOE as of 2007-1.7 billion
Recent proposal for subsidies of an additional enhanced amount of .5% to be back paid for some 10 years (on subsidies which have already been paid). This was sneaked into the last years USDOE proposals by the outgoing head of USDOE Margaret Spellings. It's hard to get an handle on this one, but the percentage of back engineered subsidies would be out of an estimated 560 billion. </p>

<p>From earlier in this discourse, and these amounts are just for 2007. With the court case concerning illegals and tuition the presumed amount involved is about 2.5 billion for California, Kansas et al. </p>

<p>That amount compared to 20 some years of subsidies and overbillings is proportionally quite small. </p>

<p>So from a monetary perspective the illegals are a problem, but much less cost than the federal support which has gone to educational lenders.</p>

<p>There is no court case in NY, because NY is still providing in state tuition. Dont know what states you are referring to. </p>

<p>I doubt there is any way to change what went to lenders in the past, but yes it should stop now.</p>

<p>Well it does need to change. But the enhanced back subsidies are a current proposal. And the various over billings could be paid back, but to date no real impetus has been put forth by the USDOE to remedy the matter. But the amount of money the US government has given these corporations has allowed these companies to buy substantial influence. </p>

<p>Which could be another reason for the loan forgiveness programs currently being discussed in regards to those loan programs the feds do directly control. It could be a form of publicity to try to force political pressure down upon the corporate lenders to enact the same reforms. </p>

<p>The court case about illegals and tuition is in the US district court arising from a case which began in California. Apparently the issue is whether tuition for illegal aliens is something which is covered via the due process clause of the 14th.</p>

<p>If tap awards me money for a semester and i didnt go to school that semester how long before they find out and i have to pay it back??</p>

<p>If tap awards me money for a semester and i didnt go to school that semester how long before they find out and i have to pay it back??</p>

<p>Kids!!!! pack up move out in a van down by the river, that way you too can get a free education, free meals, free cell phone, free health care, free free free free while your dad and I get up at 0530 get dressed, drive to work 5 days a week stay late if needed, pay our bills on time.... so you will be eligible for it all</p>

<p>I cannot agree more with NorthEastMom2. What are parents to do that have only become "rich" as defined by Obama within the last 4 years by working our rears off to finally get a dream job, with a dream salary, yet not enough time to build much of a nest egg. Additionally, knowing that we are facing a huge tax bill increase along with the loss of deductions for our large mortgage. We wouldn't have bought such a house--but the past 20 years of politics demonstrated that it was good to do--and it was to be our greatest asset. Now, it is devalued and we have no true equity in it. Where do parents like us turn when there is not enough cash to pay for the wonderful schools our child has been accepted to? I'm not whining, I'm happy to pay all the while I seem to be paying for everyone else. I'm not opposed to trying to get another job and I would even sell my home, if I could do so in this market. Please only sincere help--I'm not asking for anyone to feel sorry for those of us in the high income brackets. But, I will tell you, I wish we had kept our jobs from three years ago now. We would qualify for most of the tuition we're now being asked to pay.</p>

<p>Hapster,</p>

<p>While it isn't really help....I would gladly change places with you, no second thoughts about it at all. My EFC is close to zero but I would LOVE to have a higher EFC, because then I would have a higher income. It SUCKS being down at the bottom, making less than $30k per year for a family of 4, driving a car that is 15 years old and has more leaks than a sprinkler. I cannot even trust my vehicle to get me to the next town...it barely makes it the 5 miles to work and back. I would LOVE to be able to replace my 15 year old couch that rips my clothing. I would LOVE to be able to let my children go to the movies once a month with their friends.</p>

<p>Having a lower EFC is not always a good thing....those with lower EFC's that would equate to better aid give up so much in their day to day living, it just isn't worth the lower EFC. My children will have to pick their college degree based on what colleges I can afford to send them....and all of their choices will be small LAC's that have agreements with the institution I work for. Talk about horribles choices....you can't pick a degree that really interests you, you have to pick a degree that is offered by a select few colleges. For my oldest daughter, who will be starting college in 2.5 years, her definition of a dream college is finding one that offers something remotely close to what she wants to persue as a career.</p>

<p>I'm sorry that this seems so harsh, but I have seen so many posts complaining about having large incomes and large EFC's from people who are wishing to lower EFC's and it makes me sick. I would give anything to be able to pay all of my bills on time each month and let e children pick schools based on what career interests them the most.</p>

<p>Me too, Nikki! Seems like every other poster on the FA forum feels they're paying for someone else's education, with no understanding of the fact that Stafford is federal aid and they can get it too! I'm surprised at the lack of knowledge at this point on how federal grants work and what levels qualify for them. Some days it seems like no one has done anything to plan for their kids educations, even a few hours worth of research! Can you imagine the size these programs would swell to if everyone did get a Pell grant?! Do they also try to snatch back the food from kids whose parents get food stamps? Or begrudge them medical care or affordable housing? I'm glad I don't need to rely on the government for those things and glad they're there to help people who need it!</p>

<p>The number of people with high EFC's who have not saved for college is unbelievable and I'm finding it increasingly difficult to be understanding. I managed to save nearly a year's salary for college over the last 17 years, while never making more than $40K a year as a single parent. It wasn't easy and it was mostly small amounts on a very regular basis and a few larger chunks from tax refunds and the like. It's a slow process and, due to researching affordable schools, the funds probably won't be needed for a few years. But I'm glad I did it as I could not afford to take out the level of loans that some of D's schools would require.</p>

<p>Many of my D's friends are busily writing FA appeal letters now since their parents, making in the $100K range, are sure they should get some grants in addition to their Stafford loans and merit scholarships! No unusual circumstances, just that these bright, promising kids neglected to apply to even one school they knew they could pay for and now can't come up with the $20-30K/year needed. At this point, I think their time would be better spent looking for public schools or CC's that will still accept an application for next fall and that's the only tidbit of advice I can give them.</p>

<p>"Where do parents like us turn when there is not enough cash to pay for the wonderful schools our child has been accepted to?" Turn to your child and explain how much you can afford to pay and help them find a school in that price range. You just have to believe that your bright, promising kid will bloom where she's planted!</p>