what do i do in this financial aid situation

Parent Cafe
1

<p>Ok i think i posted last year about this too but no solution was ever found.</p>

<p>I go to UCLA, my EFC is 0 because my mom is on SSI.
She gets like 600--700 dollars a month. She has stage 4 cancer and the possibility of her going back to work one day is 0. </p>

<p>Last year she got offered 2500 PLUS loan, which she got approved for because all they look at is credit score, well she doesnt have a bad credit score..... she has debt, she pays it ontime.... no bankruptcy.. etc. </p>

<p>Well, i had to reject the loan from my financial aid because i know she will not be able to pay it off, and neither will I. I do not plan on graduting for another 5-8 years and i can not postpone the repayment until that time. </p>

<p>Now summer rolls around and she is getting offerfed a 3800 loan, she can NOT afford to ever repay that, unless i repay it, in which case they should just put it on my name not on hers.</p>

<p>What am i supposed to do ? write to my goverener? No one is listening or understanding that the SSI money she gets is just not going to be enough to repay that loan. </p>

<p>Why is she even getting approved? I understand there are no income requirments but that is just ridiculous. </p>

<p>What do i do? </p>

<p>Has anyone ever encountered this sitution before?</p>

2

<p>Some folks CHOOSE to take loans out in the parents' name rather than the students' because, for some loans, the interest rate is cheaper. And within the family, the student agrees to pay it back.</p>

<p>So I just don't see a problem.</p>

3

<p>Well, it is my understanding that if the federal PLUS loan is in your mom' name, and she passes away, you will not be responsible for paying it back. The loan is "forgiven." And upon request, the repayment of the loan can be deferred as long as you are a full time student.</p>

<p>If your mom has terminal cancer, UCLA may be offering this with the full knowledge that she will not have to pay this back if you loose her. I would definately not put this in your name, under the circumstances.</p>

4

<p>Well becoming totally or partially disabled is sufficient for loan forgiveness.</p>

<p>but since she is already disabled it is not .</p>

5

<p>Death cancellation: The total amount owed on the loan is canceled in the event of the death of the borrower or the death of the student on whose behalf the loan was made.</p>

6

<p>I am well aware of that, that doesnt help me. </p>

<p>My mom has NHL--- she can live another 15 years. She just has terminal cancer but since its NHL its controllable with constant chemo.</p>

<p>The PLUS loans repayment starts 60 days post disbursment. There is no way she can afford to start paying off my loans. </p>

<p>And i dont want to ruin her credit either becuase she uses her credit cards to live. She alreayd has a good amount of debt anyways because she was certified for SSI only 1.5 years after her becomming ill. </p>

<p>when you have like 600 dollars coming in and you use credit cards already, forking over any amount of money to student loans is not an option.</p>

<p>Additionally unless death, we do not qualify for cancellation because she is disabled at the time of loan approval.</p>

<p>What kind of oxymoron is it that becoming disabled post loan approval qualifies for cancellation but if your disabled prior to loan disbursment we will still offer you a loan.</p>

7

<p>
[quote]
The PLUS loans repayment starts 60 days post disbursment. There is no way she can afford to start paying off my loans.

[/quote]

But she can request a deferment and payments can be deferred until you are no longer a student. At that time, you could help her pay off the loans.</p>

8

<p>Malishka31</p>

<p>
[quote]
My mom has NHL--- she can live another 15 years. She just has terminal cancer but since its NHL its controllable with constant chemo.</p>

<p>The PLUS loans repayment starts 60 days post disbursment. There is no way she can afford to start paying off my loans.</p>

<p>And i dont want to ruin her credit either becuase she uses her credit cards to live. She alreayd has a good amount of debt anyways because she was certified for SSI only 1.5 years after her becomming ill.</p>

<p>when you have like 600 dollars coming in and you use credit cards already, forking over any amount of money to student loans is not an option.</p>

<p>Additionally unless death, we do not qualify for cancellation because she is disabled at the time of loan approval.</p>

<p>What kind of oxymoron is it that becoming disabled post loan approval qualifies for cancellation but if your disabled prior to loan disbursment we will still offer you a loan.

[/quote]
</p>

<p>Alright. You are just too thoughtful and darling for your own good. I think that is beautfiul. Your mommy is ill and you do not want to burden her with this loan and all.</p>

<p>It is funny how our society has gotten, you know? Some folks think your mommy getting approved for this loan is cool, some folks not. I am sitting down over where I live before my computer about to cry, because you are just trying to be a good child, man. </p>

<p>I think that if you just cannot bare the thought of your ill mommy taking on a loan, then you go to the head of fin aid at your school and see what you can do. The logic behind your mommy getting this loan is just plainly stupid (imho). But, your reasoning behind your not desiring for your mommy to have this financial burden is beautiful. </p>

<p>There has to be a nice way where you can be at peace with this particular issue and I would think that the straight up head of the fin aid department would at least hear you out and offer some sort of guidance. </p>

<p>Now, someone hand me a tissue! </p>

<p>
[quote]
But she can request a deferment and payments can be deferred until you are no longer a student. At that time, you could help her pay off the loans.

[/quote]
</p>

<p>Well, ain't that a kick in the pants? Someone can be on full out SSI. Qualify for a blessed loan whilst dealing with NHL. Partially live on credit cards. But, they can defer their loan utilising the same situation which made folks think they could qualify for a loan to begin with? That is a total kick in the pants.</p>

<p>I am confused. I promise y'all that I am not trying to be mean at all. I am just truly confused.</p>

9

<p>Malishka you have a good heart, and a lot of common sense. I agree with Mildred's post. Try her advice and go to a superivsor/head of fin aid at your school and explain the situation.</p>

<p>This does not help you, but I find it amazing that so many parents with different circumstances are asked to go over their heads into debt.</p>

<p>BTW, we have a friend with NHL and he has been living for years with disease and continues to stay in remission. It has been 8 years that he is in remission to date.</p>

10

<p>I still don't see the problem. Parents - wealthy and not so wealthy - take out loans all the time with a family understanding that the student will be the one paying it back. Now if you think that burden is too great for you, well, that's another thing, but absolutely nothing in what you have posted suggests that this is the case. </p>

<p>The average U.S. college student graduates with $19k in debt. That doesn't count whatever debt the parent may have taken on. If you are feeling that the total debt burden you will be bearing (including the PLUS loans) is too high, that's one thing. But it has nothing to do with the signature on the loan.</p>

<p>Given the low interest/easy terms for PLUS loans, the school likely thought they were doing you a great favor. Sorry you don't see it that way.</p>

11

<p>No i dont see that way at all. Why would i want to ruin my moms credit when she needs it for her livelyhood? </p>

<p>I dont anticipate graduting with a Job waiting for me .. and making enough money where i could support myself and her. </p>

<p>My degree is not very marketable to begin with , that is why i count on grad school and another 100k of debt , not on a marketable degree from undergrad.</p>

<p>I dont have any issue accuring debt in my own name, i will accrue as much debt as I deem necessary, i do have an issue putting my mother in a comprimisable situation that she can not get herself out of. </p>

<p>She is not married, we are poor,
the only person that has any potential to make money is myself, and i can not count on future earning to repay the debt that i burden her with today. </p>

<p>Sorry i am not going to see them as doing me a favor, they can do me a favor by giving me the loan, not to my mother. </p>

<p>I took every effort imaginable to reduce my debt amount anyways, from going to community college, to working full time, to spending 5 years at comm college in order to avoid any and all possible debt.... so now that i am at UCLA, i have no desire to stretch this out for another 5 years. I personally am willing to utilize as much debt as needed but not to burden someone else with it, especially someone that is incappable of ever repaying it.</p>

12

<p>malishka, You are mature beyond your years. I am very impressed. I know of someone very extended with loans who did have the income to pay it back, but the amount of debt lowered her credit rating. Something else to consider.</p>

13

<p>Long story as to why, but i am filing for bankruptcy this summer, not due to any student loans, just for other debt, and so my personal credit score will arleayd be in the toilet.</p>

<p>i wish i wasnt soo mature, really isnt seeming to help any. :( </p>

<p>do any rich parents want to adopt me?</p>

14

<p>I STILL don't get it. Why would you be ruining your mother's credit rating if you are actually paying the loan back? On the contrary, under such circumstances, your mother's credit rating gets BETTER.</p>

<p>IF you don't expect to be able to afford the loans, that is another issue. You have never said what the total loan burden would be (then we could have a very different conversation). Let us know, and we can do the figures for you.</p>

<p>But that is an entirely different matter from who has the signature on the loan. I don't see a particular sign of maturity here. A mature relationship with your mother would allow the two of you to analyze the situation objectively, and come to a reasonable understanding between you as to whether the loan is affordable, and who would be expected to repay it. The school placed you in the enviable position where you can have such a conversation, and it is immature not to have it.</p>

<p>And you may decide that you don't want to stretch this out another five years (standard these days is to pay off college loans in 10-15 years), or that the total debt burden is simply too much (and I do think that many students DO take on too much debt, but there is nothing in your posts thus far that indicates this is the case for you.)</p>

<p>I do hope you'll be able to work this out - and let us know if there is a way we can help.</p>