StarbucksBarista

Hi! I'm an incoming freshman at Wellesley College. After all the grant and outside scholarship money I received, I still have a parent contribution I need to pay each year ($12,519). Not including the transportation and personal expenses that are not included in the bill, Wellesley will cost me about $4335 per semester. However, I must pay for this bill myself. My father and step mother are unable/unwilling (not sure) to contribute money and I am not willing to accept money from my mother (I'll have to owe her my entire life...). Anyway, I was wondering which loan to take.

Unsubsidized Stafford Loan is at 6.8% interest rate... would I be able to get a lower interest rate private loan if my dad cosigns for it?

Any advice on what avenue to take?

I plan on working 12-20 hours a week during the school year and full time during the summer to start paying off my loans asap.

thumper1

The stafford loan limit for your freshman year is $5500, and it will be disbursed 1/2 each semester. Where is the rest of your money coming from?

Did your parents apply for a Parent Plus loan? I don't know the interest rate.

Another thought, take the Stafford loan, and pay the interest each year while you are in college. That will keep your balance to repay lower in the end.

cptofthehouse

You are only entitled to $5500 in loans as a freshman. That won't quite meet the gap. If you can work and come up with some of the difference, that is the way to go unless your father or mother or other credit worthy adult will cosign a loan. That does put them on the hook for the loan as well, however, and the amount borrowed will go on their credit profile. If they have good credit, however, the interest rate could possibly be lower. Something to investigate.

mom2collegekids

Will your dad co-sign? And, will he do so for EACH school year?

I'm guessing that you and your dad have mended fences? In an earlier thread you said that your dad was kicking you out of the house in July.

As mentioned above, you can only borrow $5500 as a Stafford Direct loan....assuming that you don't already have any in your current FA pkg.

StarbucksBarista

We have mended fences and although he won't be contributing, he is willing to cosign for a loan to cover my first year. I was hoping that I could find a private loan with a lower interest rate since my dad has good credit. He recently submitted an application with Sallie Mae and we are waiting to hear back. No, the $5500 stafford loan is not already included in my FA package.

romanigypsyeyes

First year... What about the following three?

StarbucksBarista

I think he'll cosign for me for the following three years if I need him to.

mom2collegekids

^^^

Will he qualify in future years? Each time he co-signs, his credit will take a hit. And is he still planning on quitting his job or going to part time?

momofthreeboys

So you live close to the college? If not you'll need to figure out the transportation costs - at least once at Christmas and for the summer unless you plan to move off campus after freshman year and stay in the town working for the summer. Also check the college policy on dorms for Thanksgiving and Spring break. Some colleges let international kids and kids from far away stay in the dorm (no food usually) or you'll have to find someone to go home with. Also don't forget your books. This can be all over the place but my kids' books generally run around $400 + or minus. You might be able to trim down from the COA alittle but you still need a transportation budget and a book budget.

Definitely accept the Stafford, you really have no other choice. Hopefully you are working and socking away money now, my kids can generally put away $3000 from memorial day to heading back to school so if you've been saving you might be able to hit this. A small PLUS loan $3-4,000 runs around $50 a month that needs to be paid. So at the end of four years the PLUS might run around $200 a month.

mom2collegekids

^^^

No, she lives in Washington....not at all close to W.

momofthreeboys

Oh, then she definitely needs to factor transportation and books as a cost...and one that will happen before she finds a job and any work/study dollars kick in. Sounds like she'll need the full federal direct loan each year and some more money by August. It would be nice if she can at least pay the $50 or so for the PLUS loan (if only $3-4,000 is needed) and still have cash from working to save toward the next semester and any walking around money since the PLUS payments begin right away but she's got bigger fish to fry than worrying about paying back federal direct immediately. If it happens that is good and if she can use a tuition payment program for whatever is owed that will help smooth over bumps hopefully.

cptofthehouse

Find out the interest rates and terms that you can get privately. If they are better than the unsubsidized Stafford, go right on ahead and have Pops sign.

momknowsbest3

Save your breath.. She shouldn't be attending here. Yall have helped her too much already. She won't listen:

Too "rich" for Financial Aid and most scholarships are need-based. What to do?

Net Price Calculator Changed?

Dad is kicking me out in July (when I turn 18)?

StarbucksBarista

What do you mean I shouldn't be attending Wellesley? I'm attending a $58,000 school for $12,000 and that's including transportation, book, and personal expenses. I already have enough money in my bank account to cover transportation, book, and personal expenses so I just need $4335 a semester to cover the rest... I appealed my FA and won over $16,000 in outside scholarships... I'm trying my best and I don't appreciate you saying that I shouldn't be attending Wellesley and I won't listen.

mom2collegekids

Are the $16k in outside scholarships for $16k per year or for frosh year only at W? And, what did those scholarships get applied to?