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Message
Y'all learn me about student loans
Posted on 5/18/16 at 6:55 pm
Posted on 5/18/16 at 6:55 pm
My son is going to Auburn (yeah, I know. I'm not happy about it either) for engineering.
He's gotten some scholarships but not near enough to cover tuition, room/board.
FASFA said he's only eligible for $1174/semester so we're obviously going to have to get some additional funding after our college IRA is depleted.
Which ones are the best and which ones do we run from? Credit is good and we'd prefer to just cosign with him so that he has some skin in the game too.
He's gotten some scholarships but not near enough to cover tuition, room/board.
FASFA said he's only eligible for $1174/semester so we're obviously going to have to get some additional funding after our college IRA is depleted.
Which ones are the best and which ones do we run from? Credit is good and we'd prefer to just cosign with him so that he has some skin in the game too.
6
Posted on 5/18/16 at 7:01 pm to bamarep
LINK
Your first line of loans will be subsidized federal loans. The note holder will be someone like Nelnet, no shopping around required or possible. The rate is set by the gubment - currently 4.29%. You're capped at how much you can borrow at this level - the idea should be not to surpass it. The next level is federal unsubsidized, the interest rate is the same but the interest accumulates while you're still in school. The 3rd level is private loans. Avoid these at all costs.
Your first line of loans will be subsidized federal loans. The note holder will be someone like Nelnet, no shopping around required or possible. The rate is set by the gubment - currently 4.29%. You're capped at how much you can borrow at this level - the idea should be not to surpass it. The next level is federal unsubsidized, the interest rate is the same but the interest accumulates while you're still in school. The 3rd level is private loans. Avoid these at all costs.
This post was edited on 5/18/16 at 7:36 pm
Posted on 5/18/16 at 7:25 pm to bamarep
How much is tuition and fees per semester? What is living costs?
Posted on 5/18/16 at 7:28 pm to bamarep
They fricking suck.
Posted on 5/18/16 at 11:04 pm to bamarep
Once you tap out federal loans, probably the only thing your son will qualify for is a private student loan. They are pretty terrible.
Is taking a home equity loan an option?
Is doing a semester or two at a junior college an option?
Is taking a home equity loan an option?
Is doing a semester or two at a junior college an option?
Posted on 5/19/16 at 7:12 am to LSUFanHouston
My wife studied on it a little (she's the brains of our bunch) and thinks Sally Mae may be the way to go. It seems they let the parent cosign with the student and pay on it while he's in school and when the student graduates, the parent can apply to be removed from the loan.
This would accomplish about three things in her eyes.
1) get his school paid for
2) let us start paying down the balance now
3) start building knucklehead credit
The costs are about $36K/year but that includes room/board. I can't believe room and board is freaking $19K/year. We thought it best he be in a dorm at least his first year but we'll more than likely go the apartment route after that.
Anyone have experience with Sally Mae?
This would accomplish about three things in her eyes.
1) get his school paid for
2) let us start paying down the balance now
3) start building knucklehead credit
The costs are about $36K/year but that includes room/board. I can't believe room and board is freaking $19K/year. We thought it best he be in a dorm at least his first year but we'll more than likely go the apartment route after that.
Anyone have experience with Sally Mae?
Posted on 5/19/16 at 7:14 am to bamarep
quote:
The costs are about $36K/year
Holy cow. Are you out of state?
Posted on 5/19/16 at 7:17 am to bamarep
Posted on 5/19/16 at 7:31 am to bamarep
quote:
Anyone have experience with Sally Mae?
They serviced one of my loans for a few years. Never really had to deal with them much though since my payment was on auto draft.
Is just going through the school's student loan department no longer an option? That's what I did years ago and they pretty much handled all of it. Bulk of mine were federally subsidized, but the last year I had to get an unsubsidized one. That's the one Sallie Mae handled.
Posted on 5/19/16 at 7:36 am to The Spleen
cant you just do a ParentPLUS loan from the Fed Government instead of Sallie Mae????
That sounds like exactly what you are doing...
That sounds like exactly what you are doing...
Posted on 5/19/16 at 7:52 am to 50_Tiger
My wife is looking into that Parent Plus too.
No, we aren't out of state. The room and board are more than the tuition.
No, we aren't out of state. The room and board are more than the tuition.
Posted on 5/19/16 at 7:53 am to bamarep
I personally would not sign or co-sign for anything
Help them as much as you can, but loans are their part... Educate your son on what that repayment note will look like, and push him o get a job to help pay.
IMO, my retirement planning gets funded first, my daughters college gets funded second
Help them as much as you can, but loans are their part... Educate your son on what that repayment note will look like, and push him o get a job to help pay.
IMO, my retirement planning gets funded first, my daughters college gets funded second
Posted on 5/19/16 at 7:55 am to The Spleen
No Spleen, we haven't gone through the school yet. We're still in the research stages.
My son seems to think he'll be able to co-op (mech engineering) with a company his Jr and Sr years. I think he's being a little over optimistic with that one though.
My son seems to think he'll be able to co-op (mech engineering) with a company his Jr and Sr years. I think he's being a little over optimistic with that one though.
Posted on 5/19/16 at 8:00 am to bamarep
As an EE in industry, he should really push for those as it more than likely turns into a real job at graduation. Which also means he can pay back that loan at a very decent rate.
Posted on 5/19/16 at 8:14 am to bamarep
Gotcha. When I went through freshman orientation at Bama there was a session on student loans that was very informative. I would imagine most schools have something similar, and most schools still handle most of the processing. I know I never really saw a check those 5 years unless I requested money to cover books and supplies. Money was always sent straight to the school.
Granted, that was all 20+ years ago so things may be different now, and it's never a bad idea to show up informed.
Granted, that was all 20+ years ago so things may be different now, and it's never a bad idea to show up informed.
Posted on 5/19/16 at 8:38 am to bamarep
Definitely talk to the schools fin aid office, they're the best guide. But before any of you borrow, sit down with him and explain exactly how much everything will cost....can he do a couple semesters of ju co and live at home? Can he get a solid summer job and stack some cash? Can his grandparents, etc make a contribution? Borrowing to pay living expenses at undergrad level should be a last resort. Re examine the living costs---can he get into a cheaper dorm, opt for a cheaper meal plan? Does the school offer work options that will offset his costs (like working as a resident advisor in exchange for free housing?)
In short, please impress upon him that he will need to contribute by working.....In my line of work, I see so many kids burdened by irrational debt because they weren't encouraged to work and study at the same time. A completely non working college stint is a luxury he shouldn't finance. Working will make him better organized and he will gain life experiences that will set him ahead of his peers.
In short, please impress upon him that he will need to contribute by working.....In my line of work, I see so many kids burdened by irrational debt because they weren't encouraged to work and study at the same time. A completely non working college stint is a luxury he shouldn't finance. Working will make him better organized and he will gain life experiences that will set him ahead of his peers.
Posted on 5/19/16 at 8:39 am to bamarep
bamarep, I graduated from Auburn last year with a degree in Civil engineering so I may be able to help some. Auburn is a great engineering school so kudos to you for realizing that education matters more than football.
Make sure you fill out a FAFSA every year. This is what gives you access to pell grants and stafford loans (through the government). This is what I did every year to pay for instate tuition.
I find the 36k number hard to believe. In my six (yes I was in school forever) years I only generated about $40k in student loan debt. This accounts for living on campus my freshman year and and 12 semesters of tuition. The federal loans will only have him as responsible for repayment. My folks helped me in school by paying my phone bill but paying for school and everything else was on me. If you don't mind me asking, where is your kid going to live that is $19k a year? even the nicest new dorms at Auburn are only $6k/semester and you can only live there fall and spring.
quote:
FASFA said he's only eligible for $1174/semester so we're obviously going to have to get some additional funding after our college IRA is depleted.
Make sure you fill out a FAFSA every year. This is what gives you access to pell grants and stafford loans (through the government). This is what I did every year to pay for instate tuition.
quote:
The costs are about $36K/year but that includes room/board. I can't believe room and board is freaking $19K/year. We thought it best he be in a dorm at least his first year but we'll more than likely go the apartment route after that.
I find the 36k number hard to believe. In my six (yes I was in school forever) years I only generated about $40k in student loan debt. This accounts for living on campus my freshman year and and 12 semesters of tuition. The federal loans will only have him as responsible for repayment. My folks helped me in school by paying my phone bill but paying for school and everything else was on me. If you don't mind me asking, where is your kid going to live that is $19k a year? even the nicest new dorms at Auburn are only $6k/semester and you can only live there fall and spring.
Posted on 5/19/16 at 9:27 am to JamalSanders
I'm not sure exactly brah. That also includes a meal ticket though. I'll ask my wife which dorm it is.
I do know it's one of the older ones.
We're not really worried about cosigning to get his a good rate. He's one of most responsible kids I've ever seen but I see the point.
I do know it's one of the older ones.
We're not really worried about cosigning to get his a good rate. He's one of most responsible kids I've ever seen but I see the point.
Posted on 5/19/16 at 9:37 am to bamarep
quote:
I'm not sure exactly brah. That also includes a meal ticket though. I'll ask my wife which dorm it is.
I do know it's one of the older ones.
We're not really worried about cosigning to get his a good rate. He's one of most responsible kids I've ever seen but I see the point.
Everyone gets the meal money. It was Auburn's was of convincing restaurants to come onto campus. I lived in the Quad and rent was $2k/ semester with $1k/ semester meal money.
I wouldn't be worried about cosigning either, but you shouldn't have to if he got any scholarships.
Posted on 5/19/16 at 9:47 am to JamalSanders
Here is the breakdown estimate they gave my wife:
books and supplies $1200
college of Eng fee $800
"personal" $2766
room/board $12,898
stafford fees $102
tuition and fees $10,696
"transportaion" $2898
Total: $31,360
I think we can throw the "personal and transportion" estimates out. We pay his cell phone and he just got a new truck.
books and supplies $1200
college of Eng fee $800
"personal" $2766
room/board $12,898
stafford fees $102
tuition and fees $10,696
"transportaion" $2898
Total: $31,360
I think we can throw the "personal and transportion" estimates out. We pay his cell phone and he just got a new truck.
This post was edited on 5/19/16 at 9:53 am
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