Hi everyone! Hopefully, I am posting this to the correct forum but, I am a first generation college student so my parents don’t know a lot about anything that has to do with loans. I already completed two years of community college and I am transferring to an out of state school but am receiving a $7000 a year scholarship. Since I am transferring for spring, including housing it will be around $14,000 a semester. What loans would be best to take out to help cover this cost? My parents say they will try their best to help but I am a bit lost here and would really appreciate the help! I also have already filled out FAFSA but only received the basic $6,500 of subsidized and unsub.
The Stafford loan through the school is the best you can do as an undergrad. Any other loans will require you parents to take them (Plus) or most likely a private loan through Sallie Mae or Sofi would require your parent to co-sign. The rates will be higher than your student loan.
I have read about both parent plus loans and private loans but is there a better option of the two?
Is there a cheaper option that’s in state?
Why did you choose the out-of-state school?
The out of state school costs around the same at the end of the day vs my in-state school. both around $25k vs $26k including housing. The out of state school also is better for my major. I have to take out the majority of my tuition for financial purposes but I attended 2 years of community college to help my parents with the cost. My parents said they are willing to help I am just unsure of what they can take out on their end that would be best.
Is this part of an academic common market situation?
Otherwise…what college costs OOS students $26,000 a year? That is a very modest cost, and that would be helpful information for those considering college who need an inexpensive option.
There was this older thread, though prices may now be somewhat higher:
http://talk.qa.collegeconfidential.com/financial-aid-scholarships/1651944-very-low-cost-oos-coa-universities-less-than-25k-coa-for-everything.html
You know my favorite - U of Wyoming! And it doesn’t cost anywhere near that with scholarship and aid. D’s billed costs per semester are usually about $9k (it does bill by credits, not per semester), but she gets almost all of that in aid, and then pays for room and board, which is pretty cheap too.
Colorado kids who go to Wyoming pay less than they would at CU.
OP said she received a $7000 as a scholarship.
If you have completed two years of college…and will be a third year student, I believe your Direct Loan will be $7500.
So…you have $7500 loan, and $7000 scholarship. That leaves you with 1/2 the bill to pay yourselves?
What was your FAFSA EFC?
Testing for understanding…
If you attend college this spring you will need 14,000 which your parents cannot afford to pay.
How do you intend to pay for next year when you will need a minimum of 28k after your loans? are our parents willing to borrow approximately 50k for you to complete your degree at this school (that is really what we are talking about)? You will not be able to borrow this type of money without a co-signer.
It seems that this is an unaffordable option. Is there any school in your home state state where you can commute to?
Yes, they are willing to take out what I need. They have the ability to pay it off. I just want to know what loans would be best in this situation.
Did you take out a loan for fall semester? If so, how much.
One common problem for those who transfer/start in the spring is if they didn’t borrow much/any for fall, then the school will put the entire 7500 loan in the spring semester, which means that the school may seem more affordable than it really. That’s because next fall, you’d only get 3750 for that semester (not 7500).
These two statements don’t jive. One suggests that they may not be able to help a lot. The other suggests that they’re going to pay back all the loans.
Please, get firm details from parents. I can’t tell you how many students we’ve seen post in the spring, all upset, because their parents mislead them (or the student didn’t ask the right questions). One student’s story stands out in particular. Months earlier, he posted that his parents told him “not to worry about cost.” Then spring came along and not only did he find out that his parents meant that they expected their child to borrow all the costs, but they all sadly learned that such borrowing would require qualified parent cosigners, which the parents could not do. The kid was kind of screwed.
With both parents present, find out how much THEY are willing to borrow each year AND AND AND how much of those loans will those parents pay back themselves.
For example if your parents end up borrowing a total of $40k for those last two years, they’ll have a monthly payment of about $400/month for ten long years. Such a Loan could make it difficult for them to also cover a car loan or anything else during those 10 years. (It’s important to have both parents in agreement with the payment/loan decisions because sometimes one parent is more naive or impulsive, while the other parent may know that the family cannot afford such loans.
sorry about not being clear, they have the ability to pay it all off just not all right now since they are in the process of figuring out some other things financially but it should all be solved by the summer. This is why they will be taking it out for this semester but more than likely not to the rest. I have not taken out any loans yet prior to this which is why I am asking about which are best in this situation.
The best is for you to take the full Stafford loan ($6500 if a sophomore, $7500 if jr or sr). Your parents can then take the Plus loan which has a higher interest rate and a higher origination fee. Some private loans have a lower rate but the repayment terms might not be as good.