College, student loans, etc. WTH??

[JMacBass65]

So my daughter graduates form high school this coming Wednesday. She has committed to James Madison University in VA. College acceptance could be a thread on its own, shoulda done that a while ago, but whatever.

Parents out there that have been through this, students, anybody..........

Who understands this stuff???

What exactly is financial "aid"?? Is it just loans??? How easy is it to get them?? We are looking at $22K/year, with an "expected family contribution" of about $6,500.

So where does the rest come from? Is it all loans? Grants? It all seems to be in another language.

My fear is that We will be expected to pay $6,500, she'll be offered loans in whatever amount, and there will be a gap remaining.

Does that happen? Or can we expect that she can and will somehow qualify for loans to cover whatever?

It all seems like some sort of shell game.

 

[Skeptismo]

Loans, grants, and scholarships, sometimes internships or work study programs.
Loans are easy to get and difficult to pay off, but starting your student into the real world with crippling debt is the american way. Also, there are often stipulations on how they must be spent. Grants are gifts that never have to be paid back. Scholarships generally require certain things, like participation in sports, or outstanding academic work.
Make sure and fill out the FAFSA, and then have your student go to the financial aid office. Make sure that she applies for every scholarship and grant she could possibly qualify for...the essay writing in the first few weeks of the semester can really pay big dividends. Even small awards like 300-500 are worth it when it only took an hour to write the essay. Best of luck!

 

[BigDanT]

We currently have a daughter in college and she has received some scholarship dollars but there is still about $15,000 a year left to pay.

Don’t forget tuition does NOT include room and board or books. Figure $5-6k for room and boar and another $2-3k for books.

Today, students can get government secured loans up to a certain amount based on their year in school. This was changed since I was in school and you could take out loans for thousands more than your tuition.

After the student maxes out their government backed loan amounts they can get private loans or parents can make up the difference with loans of their own.

 

[BigDanT]

^or they can pay cash.

 

[bkbirge]

I'm more concerned for your daughter and your financial future that your go-to for fiscal advice is talkbass.

 

[JMacBass65]

I'm more concerned for your daughter and your financial future that your go-to for fiscal advice is talkbass.

Thanks for the snark, that's helpful.

Did it ever occur to you that the people that hang here come from a wide variety of ages, backgrounds, and experiences? And as such, might have something useful to say? Don't think for a minute that this is my only resource, but as with other non-music related things, I have found advice and suggestions from members here valuable. In this case, I figure I'll get answers from parents who went through this already (recently or long ago), recent or current students, etc. That's valuable input from a community I trust, while not knowing them personally.

Hell, last year about this time, I spent significant time helping someone here sell his home under difficult circumstances. He came here for advice, just like I did. Turns out there was a realtor here (me).

I did this to help someone in the community, because that's what people do. As he was in an area I didn't feel I could serve properly, I did not handle the sale and received no money from it, never expected to. However, I gave him expert, professional advice, and he benefitted from it. I suppose I could have scoffed at him for asking here, but I decided I'd rather be helpful.

 

[JMacBass65]

We currently have a daughter in college and she has received some scholarship dollars but there is still about $15,000 a year left to pay.

Don’t forget tuition does NOT include room and board or books. Figure $5-6k for room and boar and another $2-3k for books.

Today, students can get government secured loans up to a certain amount based on their year in school. This was changed since I was in school and you could take out loans for thousands more than your tuition.

After the student maxes out their government backed loan amounts they can get private loans or parents can make up the difference with loans of their own.

Thanks. Yeah, the $22K is tuition, room, and board.

 

[JMacBass65]

Loans, grants, and scholarships, sometimes internships or work study programs.
Loans are easy to get and difficult to pay off, but starting your student into the real world with crippling debt is the american way. Also, there are often stipulations on how they must be spent. Grants are gifts that never have to be paid back. Scholarships generally require certain things, like participation in sports, or outstanding academic work.
Make sure and fill out the FAFSA, and then have your student go to the financial aid office. Make sure that she applies for every scholarship and grant she could possibly qualify for...the essay writing in the first few weeks of the semester can really pay big dividends. Even small awards like 300-500 are worth it when it only took an hour to write the essay. Best of luck!

Thanks. Yeah, did the FAFSA back in October.

My daughter is an International Baccalaureate Diploma candidate, so essays are all she's been doing for months now, just to meet the requirements of that program. When I mentioned scholarship applications and more writing, she groaned. But the reality is as you put it. Is it worth a few hundred/thousand dollars to sit down and write something? It's free money FFS. So in the end, she'll be doing that.

It's the financial aid packages from the schools that are confusing. We got a prelim one when she was accepted to JMU, but await revised one now that she has committed. There is a Facebook parent group for next year's freshmen, and frankly none of us seem to understand it all. After reading through one particular thread, my head was spinning, that prompted my post here.

We go down to the school in a couple of weeks for an early orientation of sorts, and will be speaking to the aid office then. I'm a smart guy, so hopefully it will all make sense then.

 

[bkbirge]

Thanks for the snark, that's helpful.

Did it ever occur to you that the people that hang here come from a wide variety of ages, backgrounds, and experiences?

Just a lighthearted joke, sorry if it offended, hope you get the advice you need to navigate the college financial landscape.

 

[Skeptismo]

Thanks. Yeah, did the FAFSA back in October.

My daughter is an International Baccalaureate Diploma candidate, so essays are all she's been doing for months now, just to meet the requirements of that program. When I mentioned scholarship applications and more writing, she groaned. But the reality is as you put it. Is it worth a few hundred/thousand dollars to sit down and write something? It's free money FFS. So in the end, she'll be doing that.

It's the financial aid packages from the schools that are confusing. We got a prelim one when she was accepted to JMU, but await revised one now that she has committed. There is a Facebook parent group for next year's freshmen, and frankly none of us seem to understand it all. After reading through one particular thread, my head was spinning, that prompted my post here.

We go down to the school in a couple of weeks for an early orientation of sorts, and will be speaking to the aid office then. I'm a smart guy, so hopefully it will all make sense then.

In my experience, the school will do everything they can to get your student enrolled and attending classes, so that can be a comfort to you.
I also know from personal experience that writing those essays is worth it. I was fortunate enough to get a scholarship and a few grants that made a tangible financial difference during the undergrad years. Some of the essays she'll write can be recycled or only slightly altered, so it's not like she'll have to sit down and create something from nothing each time...just like writing music!
Best of luck!

 

[s0c9]

Basically..
your daughter will qualify for a small part of the college loan ($2-4k?), and then YOU will get the balance ($14k?) thru a Parent-Plus loan - assuming you go thru FAFSA and will end up getting your loan service by either Navient or some other Federal "loan service" agency. It's a PITA.. read the "small print".
Also, be aware that Fed loans are HUGELY expensive and START accruing interest from day #1 - thru the life of the loan.

Parent plus loan rates are (I believe, currently) at 7.21%. Ridiculously high rate, but easy to get tho'. You can get private loans at a lower rate (3.5% on up?) - but often with much more stringent qualification requirements (like minimum amounts), or you can refi the outstanding balance right after she graduates.

One other [cheaper] option is to do 2 yrs at a junior college near home, and finish the final 2 yrs at a 4-yr college using loans.
Factor in that your $15k a year loan will be close to $28k a year for payoff. You CAN start paying the loan back from the day it is issued. It will lower the overall expense of the loan and keep interest payments to a minimum.
My daughters BFF owes $180k in college loans.. her payback amount is $1600 a month for the next 10 yrs!
Our loan balance is only $20k or $240-ish a month.

Yeah.. I learnt this the hard way too.. And I'm NO expert!

 

[JMacBass65]

Just a lighthearted joke, sorry if it offended, hope you get the advice you need to navigate the college financial landscape.

Didn't come off that way, thanks for the apology.

Peace.

Basically..
your daughter will qualify for a small part of the college loan ($2-4k?), and then YOU will get the balance ($14k?) thru a Parent-Plus loan - assuming you go thru FAFSA and will end up getting your loan service by either Navient or some other Federal "loan service" agency. It's a PITA.. read the "small print".
Also, be aware that Fed loans are HUGELY expensive and START accruing interest from day #1 - thru the life of the loan.

Parent plus loan rates are (I believe, currently) at 7.21%. Ridiculously high rate, but easy to get tho'. You can get private loans at a lower rate (3.5% on up?) - but often with much more stringent qualification requirements (like minimum amounts), or you can refi the outstanding balance right after she graduates.

One other [cheaper] option is to do 2 yrs at a junior college near home, and finish the final 2 yrs at a 4-yr college using loans.
Factor in that your $15k a year loan will be close to $28k a year for payoff. You CAN start paying the loan back from the day it is issued. It will lower the overall expense of the loan and keep interest payments to a minimum.
My daughters BFF owes $180k in college loans.. her payback amount is $1600 a month for the next 10 yrs!
Our loan balance is only $20k or $240-ish a month.

Yeah.. I learnt this the hard way too.. And I'm NO expert!

#^$%......kill me now.......

 

[s0c9]

Didn't come off that way, thanks for the apology.

Peace.



#^$%......kill me now.......

yep.. glad I could help

 

[acleex38]

Following this out of curiosity for a number of reasons.
1.) I'm also a Northern VA dad with a teenage daughter - I still have another 4 years until college, though.
2.) My wife is JMU alum and that school is VERY MUCH on my daughter's radar.
3.) We did the Virginia529 plan starting in 2012. BUT that doesn't cover the room/board/books and I'm trying to figure out how to pay that when the time comes, so I'm curious if loans might be the answer (and less painful than trying to cover all of tuition).

@JMacBass65 - I checked your profile page and followed the links to see if we had any mutual friends. The answer is "yes, several." I just "like" on the Concrete Blues page.

 

[Fredrik E. Nilsen]

One more reason to be glad to live in a civilized country (Norway), where all public education is free (including universities etc), where every student get up to about 12-13k (us $) in student loan each year (with no interest as long as you are studying, and if you live outside home and/or finish your education, large potions of the loan will be converted to grants). I really feel sorry for you. You should fix this.

 

[InhumanResource]

Thanks for the snark, that's helpful.

Did it ever occur to you that the people that hang here come from a wide variety of ages, backgrounds, and experiences? And as such, might have something useful to say? Don't think for a minute that this is my only resource, but as with other non-music related things, I have found advice and suggestions from members here valuable. In this case, I figure I'll get answers from parents who went through this already (recently or long ago), recent or current students, etc. That's valuable input from a community I trust, while not knowing them personally.

Hell, last year about this time, I spent significant time helping someone here sell his home under difficult circumstances. He came here for advice, just like I did. Turns out there was a realtor here (me).

I did this to help someone in the community, because that's what people do. As he was in an area I didn't feel I could serve properly, I did not handle the sale and received no money from it, never expected to. However, I gave him expert, professional advice, and he benefitted from it. I suppose I could have scoffed at him for asking here, but I decided I'd rather be helpful.

Easy cowboy, he has a point. You would be best served talking to an accountant.

Financial aid isn't a loan, it helps you close the gap between what you've got and what the bill is (assuming you qualify).

If you're situation is that loans are needed, well... Bummer. But it isn't uncommon. My folks didn't contribute to my tuition and I want eligible for aid or any scholarships. So I just went into debt up to my balls and knocked it out. Graduated with about 70k debt and my first real salary of 28k annually. Awesome.

It worked out though. It's worth getting just for the opportunities that open up. Even if they suck at first. I continued to work my college job along with my crappy new job and gigged every second I could. Bought a house in the hood with my girlfriend and made it work. Total hustle.

It sucks that it is so expensive, but it's worth it. Unfortunately unless someone in your side is wealthy and handle it for her, or if your kid qualified for a huge amount of scholarships, you/her just have to bite the bullet. It will be ok if she ends up having to take a loan out. She just might have to stay home a little longer after graduating and work hard to get the bread together to launch.

I know this is stressful, it sucks. There's no way you can first your tuition by working over the summer like the previous generations. Me smart about your major, make a plan and do nothing that jeopardizes the plan.

 

[lfmn16]

I know that few people want to hear it, but your daughter can live at home and go two years to a community college at a fraction of the cost. I've never had an employer ask in an interview if I went all four years to the school I received my degree from. Unless you go to an Ivy League school, or one of the online diploma mills, for most professions no one cares where you got your degree.

 

[acleex38]

I know that few people want to hear it, but your daughter can live at home and go two years to a community college at a fraction of the cost. I've never had an employer ask in an interview if I went all four years to the school I received my degree from. Unless you go to an Ivy League school, or one of the online diploma mills, for most professions no one cares where you got your degree.

In Northern Virginia, that is a particularly good options. A.) Northern Virginia CC is quite good and B.) Attendance there + good grades = admission to any VA state school. Admittedly, his daughter already got in, so the advantage of B isn't really strong here.

 

[lfmn16]

In Northern Virginia, that is a particularly good options. A.) Northern Virginia CC is quite good and B.) Attendance there + good grades = admission to any VA state school. Admittedly, his daughter already got in, so the advantage of B isn't really strong here.

+1

Colleges are like basses. There's nothing wrong with owning a Fodera if you can afford one, but you can play the same gig on a Squier.

 

[Slough Feg Bass]

yes, talk to the financial aid office, and anyone / everyone who might have a clue about this stuff. Even here is a good idea!
every little bit counts. I got some grants / scholarships in college, spent a lot of time satisfying requirements / essays / extra effort for the money, but it really did help a lot. every cent was spent on school stuff.
granted, I still graduated with a loan that took me 15 years to pay off, but damn, when I got that notice that it was paid in full, I can't even describe what a feeling of freedom that was.