<p>This question has probably been asked, but I can't find a good thread that explains it. All of my colleges (besides my safety which we can afford) meet 100% need. However, of course this need includes loans, though they most likely won't be very large loans. This part isn't the problem.</p>
<p>The problem is the EFC - we can't afford ALL of our EFC/yr! That's a lot of money... 1/3 of my parents' salary. So does that mean we have to take out private loans? How much are those, what are the interest...</p>
<p>You either take out loans or find a school that is affordable to your family and you. Someone has to pay the college bills. They will not be “forgiven” by the college if you don’t pay them.</p>
<p>If this is really a large amount of loans, I would suggest a less expensive school.</p>
<p>There are a number of ways to meet the EFC. We’ve made it a family effort. Our son wanted to go to a college that was on the expensive side even with a merit award and an outside scholarship. He has been saving for college for all of his life, but particularly since he’s been earning money over the summers. He took two jobs that summer before going off to school. So he was able to pay some of his costs with his savings, his summer earnings and he took out a Stafford loan. We also have some savings for college, which we are using along with money from current income and we are borrowing too. In addition, we are on an austerity regiment here at home. Thermostat was lowered this winter, use of car carefully planned to lower gas costs, no more eating out, no more movies, entertainment, no more shopping, cutting the grocery bills, cutting Christmas costs, really getting down to the basics. We have cut our costs down by several hundred dollars each month. We had a neighborhood garage sale which netted us a nice spot of money, and I have sold a few things on E-bay that we don’t need any more. I’ve also donated a lot of things to Good Will and lowered our charitable giving by that amount. Also we are working at some charities to reduce money giving some more. Kids bring lunch and snack each day to school. No more sodas, snack machines. Son is working during spring break, worked during Christmas break and now has taken a job on campus for 10 hours a week and figured a way to lower his book costs by borrowing from the library since he goes to a block plan school. I make an effort to car pool more and have a carless day each week. I am going to hair dresser less often, and am watching every penny. </p>
<p>It’s not easy. Even with all of this planned out, on paper, I am $6K short for next year, and that’s projecting some things that may not pan out. Also I can only hope that I have allotted enough for emergencies. We are driving to S’s college graduation, and instead of staying at a hotel, will stay at his student digs. No paying for vacation this year. Staying with friends and family for mini trips. We are really cutting as much fat as we can from our budget.</p>
<p>We’re having the same anxiety, neethus1. We’re going on the spartan plan too, although cptofthehouse has some ideas I hadn’t thought of. Even at that, though, we’re probably going to have to take some loans. My goal is to keep them to an absolute minimum.</p>
<p>The sad thing for us is, there are grandparents in the picture who have generously offered to help. They couldn’t believe it when I told them that their contribution would only help the school, not us. Depending on our situation when D graduates, we may ask them for help with loan payoffs. But it doesn’t seem right somehow.</p>
<p>In terms of private loans, there are alot of options, but do your research. Here’s a place to start: </p>
<p>Also check with any bank or credit union that you or your parents already have a relationship with.</p>
<p>As I understand it, it’s better for you to take the loan, rather than your parents. Repayment doesn’t begin until after you graduate, and the terms are based on your parents’ credit rather than yours, provided they cosign.</p>
<p>There are ways for GP to give without affecting aid. For instance, they can give to Parents to help with things, other than Cost to Attend. Maybe make a few mortgage/rent payments for you. Help pay your property taxes. etc. Or, like you said, set aside money for D so when she graduates, a lot of her loans (or yours) are paid down.</p>
<p>Cptofthehouse, we are facing the same thing this year, We, with some tuition increases are going to be about 5,000 short. My son tried over break to secure another summer job (his store position was never full time, not matter what was promised) and found some perdiem work. No trips except for some college tours for his siblings. I’ve been buying less “junk food” and trying to keep the thermostat even lower.
I am keeping meticulus records of my charity giving this year (realized I could have had a bigger deduction than I did) and am finding a new income in consignment shops. I made 100.00 last month just giving clothes I bought and never wore or my children grew out of.
It’s hard, but you can lessen the amount a little bit if you try and that “little bit” is money without interest I don’t owe.</p>
<p>On a side note, my sister and her D actually made over a thousand dollars with consignment and Goodwill. They lived near an upper-income area and her D would shop at the Goodwill near them and S.Army. Sometimes she would see on “1.00 days” or 1/2 off days, items that were a little too big or small for her but great labels and quality. Cashmere tee shirts, things like that that were going to be sent to a warehouse soon if not sold. She would re-sell them at the C. Shop and made quite a bit of money…not something I’d like to do or have the time to do, but it worked for her.</p>
<p>Wow, thanks guys… I’m comforted to see that I have people who are experienced with this in my company. It seems that whenever a question is asked like this, the answer is: “Well, go to a state school.” I am definitely considering my state school, but I would just like a few options, and you guys provided that for me.</p>
<p>I’m getting a summer job - I’ve applied numerous places and I’m just waiting and waiting… it seems like forever! No one around here is hiring, and the places that are, I’ve already applied to.</p>
<p>I’m also going to try to sell some of the stuff that I never use (i.e. my Playstation 2, PS2 games… etc).</p>
<p>C is short for consignment shop. They are stores that take very good to new clothes, sometimes furniture and household items and if sold, you get 1/2 or 40% depending on the store. I had a few good ones near me that helped me with my twins when they were babies, I would be giving and buying and either breaking even or making some money.</p>
<p>I have exercise DVD’s that I don’t use, my son has an older playstation, you’d be surprised what you can get by yourself or with the help of a store.</p>
<p>Sometimes there are temp agencies that will hire young adults, check around. I know it’s hard now, many employers are cutting back, but some like teens/college students because they are cheaper and they are temporary.</p>
<p>Operadad, you’re giving very good advice…the school doesn’t have to know about parents helping you pay for your bills, but that would help you pay the school.
I read somewhere that a college parent won 5 or 10,000 in the lottery and had a relative cash it in and they gave her the money. They were in a different bracket and it didn’t really hurt them…it would have just went to tuition if they added it to their income one year. She used it I think to pay off her C. cards or second mortgage so that the tuition payments would be more manageable the following year, but her income wouldn’t be 10.000 more.</p>
<p>I am not going to pretend this is easy or fun. It is very difficult. It has given me a sharper awareness of how much money we can spend. We blew over $300 last month for a brunch. Won’t do that again. Spent $200 at Trader Joe’s this week, but it is a treat in place of eating out. I’ve been buying clothes at Salvation Army and Good Will rather than at stores. Books at places that sell them very cheaply. Our public library has a used book section where you can buy paperbacks for 50 cents and hardcovers for about a $1 on up. Garage sales are also great sources for cheap things. But it is cheapest of all just not to spend.</p>
<p>My son in high school just sold a bunch of his books already to someone who is a year behind him. He’ll give the kid the books as soon as the school year ends. Also will sell him the AP prep books I got him. Since we got the books used, he is getting back nearly what we spent. We’ve been using hulu and redbox codes to watch free tv instead of renting from Blockbusters or buying dvds. I have a little old tv that has a slot of VHS tapes and I buy kiddie stuff for that for pennies at yard sales and thrift shops, good kiddie stuff, that my niece and nephew and neighbor’s little ones love to watch. Also great for MIL who likes the old movies. Simple enough for them (and me) to use too. Our danged DVD/tv setup requires an engineer to use.</p>
<p>If you make too much money to take advantage of the Obama tax credits, give your kid enough money to be independent for the next year so he can take the tax credits. Grandparents can lend, rather than give money, too. Look for a kid about a size or two bigger than your kid, and ask the mom to buy any specialty clothing like school uniforms and such when outgrown. No one will take my money for that–they just give me the stuff. Now is a good time to challenge your property tax if your house has depreciated in value.</p>
<p>Unless you have a bottomless pit of money, cutting back on expenses when you kids are in college is a reality. We have cut back significantly on the following: new purchases of any kind including cars, appliances, clothes, shoes, pocket books etc, more comparison shopping for better prices on everything including food, MUCH less eating out…and we look for 2/1 coupons or go out for breakfast, no vacations (unless you call a day trip to see the college kid a vacation…or a family wedding), turned the thermostat down in the winter three degrees, clothes at consignment stores or Goodwill…or if it’s a one time thing…I’ll borrow from a good friend, we do more ourselves…things like yard work, painting, cleaning. In other words, our discretionary spending has been significantly reduced AND so has the discretionary spending of our kids. If we don’t need it…we really DO think more than twice about buying it.</p>
<p>One thing we have really noticed is that there are savings not having these college aged kids at home. With fewer kids, I can monitor the wash, the lights, and other things that I just can’t track with all of them here. When we have the older ones home, the OJ, the milk, the food just disappears. Also, we are using the care more. So there is a cost savings in having kids off to college.</p>
<p>cpt is right. Our electric bill alone is at least $50 a month LESS when our kids aren’t home. The cars have gas in them (novel idea) and the food we buy to cook for dinner is IN the fridge when we go to cook it. Also, we are far less picky about what we eat…so we buy less…and we buy significantly less snack foods.</p>
<p>Oh…one other thing I forgot…no new furniture, house updates or remodels or anything like that either. </p>
<p>We’ve been doing this for 6 years…one more to go.</p>
<p>Our rooms need a face lift, but other than painting I can eventually do myself, nothing is being bought. I was proud of myself when I went to a wedding last fall. So many people talked of spending hundreds on dresses, shoes, etc. I got a 50.00 black wrap around dress at Marshalls, cute blk sandals at Payless for 12.00 on sale, borrowed a beautful wrap and purse and looked great. No one would have guessed I did it so cheaply. </p>
<p>My mom told me today, spending money is easy, but the same 60.00 you spend at T.Joes (my favorite store) can be saved by not having the Dunkin donut coffee, not gettng the deli sandwich 3 times a week,etc. She told me to try to not just not buy it, but actually put the money for the sandwich in an envelope and anything else I would buy that was wasteful. I would be surprised how fast the amount would grow. Just cutting it out sometimes makes you just spend it on something else, it isn’t real, but when she would put the actual money in something she was shocked, even years ago, how fast it grew.</p>
<p>Amazing, isn’t it Thumper? Not only do we feed our kids, but they bring friends which really depletes the food stock. Not that I would have it any other way when they are here, but yes, the car has gas in it, the frig has food, as does the pantry. The lights are all out in the morning, the garage door is closed. The shampoo bottles and toilet paper last a bit longer. Even my water and sewage bill is lower. I can actually check out clothes for the sniff and stain checks instead of blindly attacking the wash in hopes of keeping up with it. Also I can keep better track of pens, scissors, tape, etc. Also the handouts of cash being borrowed. Also, I can use leftovers with a family of 4. When everyone is home, there are NO leftovers or so little that they cannot be used for another meal for every one.</p>
<p>I don’t shop at Trader Joe’s when they are all here because it is beastly expensive to feed them all from there as the portions are not large and my boys’ appetites are, plus they often bring friends to join us. I have to keep it simple, plentiful and stretchable.</p>
<p>I love Trader Joe’s! Thankfully, we don’t have one anywhere near us (we’re in the epitome of suburbia), b/c if we did, my family probably couldn’t resist!!! Trader Joe’s is awesome.</p>
<p>We don’t shop at Trader Joes, or Whole Foods or any of the other “tony” stores. They are simply TOO EXPENSIVE for a family who is paying for two kids in college. We look for the prices that are least expensive.</p>
<p>Yeah, well, my dad is a mastermind with coupon shopping. He buys things that are on sale, and then uses a coupon on top of it. Plus double coupon, so it doubles the discount (if the coupon is for under $1.00 off, so if it’s $.99, it works).</p>
<p>I splurged this week. Got a lot of special stuff for the money, but there is no doubt that I could have gone cheaper had I just bought basic ingredients and cooked from scratch. That’s pretty much what I 've done for years. But with all of the kids home, TJs is waaay too much cost for us, and I simply did not go there for years even as I heard folks rave about the goodies there. For a family of 4, it isn’t so bad. In fact, I have to be careful shopping at Costco these days, as bulk purchases are no longer the best way to go with a smaller family.</p>
<p>Trader Joe’s actually has some excellent deals! We just had some TJ marinated tuna tonight for dinner. It is awesome AND a bargain - certainly not as cheap as ground beef, but it can be worked into a budget. And the 3-Buck Chuck wine makes drinking affordable! :)</p>