<p>The parent plus loan (which is giving me 5639 for the year) or a direct unsubsidized loan (giving me 2000)? In terms of interest, which one would I (or my parent, same thing) have to pay more for and pay more quickly? </p>
<p>I was thinking of doing half and half, so take half the parent plus for the fall and then half the unsub for spring. Good or bad idea? Any help is so appreciated, I feel lost. </p>
<p>Here is the breakdown: </p>
<p>Estimated cost of attendance from 8/21/2013 to 5/ 5/2014 $ 20,968.00</p>
<p>Minus:
Expected Parental Contribution 1,851.00
Expected Student Contribution 0.00
Equals your gross financial need $ 19,117.00</p>
<p>Award Detail
Fall Spring Total
PREDICTED FEDERAL PELL GRANT 1,897.50 1,897.50 $ 3,795.00
PREDICTED FED DIRECT SUB LOAN 1,750.00 1,750.00 $ 3,500.00
I DOUGLAS TURNER GRANT 1,728.00 1,728.00 $ 3,456.00
PREDICTED DIRECT UNSUB LOAN 1,000.00 1,000.00 $ 2,000.00
PREDICTED FL MEDALLION SCHOLAR 1,125.00 1,125.00 $ 2,250.00
PREDICTED PARENT PLUS LOAN 2,820.00 2,819.00 $ 5,639.00
Total Award </p>
<p>You need to ask your parents if they are willing to take on any of that PLUS loan. That would be a loan for them, not for you. Your loans are the subsidized and unsubsidized federal direct loans. You’ve also got a pretty big Pell Grant in there. That tells me that your parents don’t have a whole lot of money ito pay for your education in the first place, so chances are that they shouldn’t be taking out any loans, because they aren’t going to be able to pay them off.</p>
<p>There is no student contribution in this budget, and no work-study set aside for you at the college/university. You need to ask for some work-study money, and you need to lay your hands on a part time job starting now, and going through the summer. With those two items, and choosing a cheap meal plan and dorm, buying used books, and keeping your personal expenses to a minimum, you might be able to reduce your expenses so that amount of costs now recorded as PLUS is completely covered without further loans.</p>
<p>Wow, thank you so much for your input. I had no idea I could ask for work study, I initially asked for it in my fafsa but seems like I didn’t receive it. My mom is willing to get the plus loan, but would she have to start paying for it as soon as I start the fall term? </p>
<p>I’ll also be retaking the ACT so hopefully that increases my Bright Futures Scholarship since I’m only a few points away from the next one.</p>
<p>Do ask about work-study, but don’t be surprised if the money has been committed and there is none left. That sort of thing happens.</p>
<p>Your mom needs to read the paperwork for the PLUS loans very carefully. It would be best if she can at least pay the interest every year so that it doesn’t accumulate. She also should check to see if she can set up an installment plan with the university, and pay every month instead of each semester. Even if she needs to pay each semester, she may be able to arrange to borrow PLUS money only one semester at a time.</p>
<p>Will you be living on campus? You can help your mom out by choosing a cheaper residence hall and meal plan. That could cut a couple thousand dollars off your bill right away.</p>
<p>I will be living on campus, and I’m choosing one of the cheapest dorms. I still don’t know about meal plan prices, but I’ll choose the most convenient since I’ve heard you get tired of the food quickly. </p>
<p>Thank you lots, you don’t know how helpful you’ve been :)</p>
<p>Well at least you know that now. If you don’t have a part-time job, look for one now where you are, and start saving money for the fall. As soon as you arrive, look around for a part-time job near campus,or for a non-work-study job on campus. Sometimes those actually pay better than the work-study positions.</p>
<p>Right now, your school is giving you about 36,000 in loans over four years. That’s a lot for a low income kid but not undoable. </p>
<p>I don’t know your family situation - siblings, mom’s health - but is there any way your mom could earn some extra money as well as you getting a job? If she could babysit or clean houses or pick up a 5-10 hour a week part time job, that combined with what you bring in could pay off a good portion of the loans. </p>
<p>If each of you could pay 20 or 30 or 40 dollars a week towards those loans as you go, your debt at graduation wouldn’t be unmanageable. Your mom might even be able to add some just because she won’t have your everyday expenses while your away. Those little bits of money would add up to a big part of what you need.</p>
The interest rate between the two is only about 1% and they both accrue interest. I would have the student take the maximum amount for a few reasons. Number one, if they accumulate $30K over the 4 years all the loans can be consolidated and the student could get the maximum 25 year payback period. Granted, there would be higher interest paid but the monthly burden would be much less. Number two, if they pursue graduate school it is easier to defer the payback (although the interest still accrues on the unsub). Three, the parent can still choose to make the payments for the student but the student gets the credit rating boost.</p>
<p>@yankee, it would be almost impossible for my mom to get a part time job. I’ll be majoring in biology, so I’m not even sure how plausible it is for me either. I’m an only child. I’m not counting from too much money from my dad, probably no more than $100/month, I’m not sure. </p>
<p>Here is the breakdown of the COA <a href=“http://www.sfa.ufl.edu/basics/cost-of-attendance/[/url]”>http://www.sfa.ufl.edu/basics/cost-of-attendance/</a>
Would it be a bad idea to only get one subsidized loan? Of 1750? Since I will only be paying the tuition and housing to the college directly. The other expenses I could save more on. Is that too naive, or is it possible? I don’t want 36k in loans, since I am considering either optometry school or med school, but I don’t want to be poor and miserable either. What could be a good balance of loans? Or should I just accept them all? </p>
<p>Would it be a smart idea to skip out on the PLUS loan and get a private loan instead? I got the FA letter from UF, and the interest rate for the PLUS is 7.9%. Looking at Wells Fargo, they offer some that are 6.24%. I don’t know how accurate that is, since I’m looking looking at the website.</p>
<p>PLUS interest may be higher, but the requirements for getting them are lower. If your mom is rejected for PLUS, you will be able to borrow an additional $4,000 in federal/Stafford loans. With a private loan, your mom would need to re-qualify every year, and there is the chance that in a future year she wouldn’t qualify for the amount that you need.</p>
<p>If your mom takes out a PLUS and she should die before the loan is repaid, then the loan would go away. If you would die before her loan is paid off, it would also go away. If you and your mom co-sign a private loan, that loan won’t go away until it is paid off or both of you are dead. Yup, there are families out there paying down private loans for students who died years ago. Not a pretty scene. If you do determine that a private loan is best, get life insurance on yourself to cover that loan for her in case you meet an untimely end. Not of course that we expect that to happen to you, but simply because it might and you don’t want to leave your mom in a bad situation.</p>