I have found myself in an interesting situation. The Kentucky Office for Vocational Rehabilitation authorized for me to receive $6,200 in financial aid for next semester. This has caused me to lose at least a third of the Kentucky Tuition Grant, which is $3,000. I was awarded an outside scholarship worth $2,000, which then cancels out the grant entirely. This leaves me needing $5,500 in student loans for me to continue my education, and it should remain the same for the next two years afterward. After four years in college, I will have accrued at $18,700 in debt not including interest. Since I no longer meet the financial need requirements, the only loans I can have are unsubsidized. I asked the university if I could enter their Loan Repayment Assistance Program, and I was rejected. I personally believe $18,700 is too much, and I’m not sure if I’d ever be able to pay it back.
This is leaving with a decision to make. How much is my education worth? I want to work for a horse farm, and I feel a degree is necessary for me to have the best chance at securing such a career. The public universities in the state would be no less expensive for me since there I would lose my $6,200 from the government because I wouldn’t meet their financial need requirement. There is a community college with an equine program, but it is off campus and public transportation would not be an option for me to pursue.
I have looked into other means for funding my education, but I have yielded no results. My parents can’t afford the extra costs, the Office for Vocational Rehabilitation has given me the most assistance possible, and little has been presented from outside scholarships. I’m in an incredibly difficult situation with the semester starting very soon on August 19th. I am not sure what to do, and any advice would be appreciated.
You will have a total of $18,700 in loans for the full four years? All of these federally funded direct loans? If you did a standard repayment plan, your payments would be about $225 a month for 10 years. If your income is less, you could apply for income based repayment.
In my opinion, $18,700 is not a huge amount of loan debt for a four year degree in college.
@thumper1
How might I apply for the Income Based Repayment plan? This is a possible option if I find myself in a difficult financial situation. The horse industry isn’t known for high salaries, so it may be very useful.
What is a reasonable salary for someone in this position both starting and after a few years?
When you complete college, you will have a six month deferral for payments on the Direct Loan. I believe you set up your payment plan when it’s time to make payments (well…before then).
Google “income Based Repayment Plan for Federally Funded Student Loans”. I bet you will get some hits.
Here…
https://studentloans.gov/myDirectLoan/ibrInstructions.action
I think you should meet with the FA officer at your school. Have all the documents with you showing the state award. They may be able to use professional judgement to get you a Pell grant or at least the loans as subsidized. That doesn’t make the $18k in loans go away, but the government pays the interest while you are in school.
My daughter is working on a ranch this summer, leading trail rides. She doesn’t make that much but loves her job.
@Eeyore123
It’s relatively low, around $20,000 or so starting out for most grooms. Managers make more, but it varies based on the farm. It should be noted that some farms offer housing though, which makes the income a little more understandable.
@thumper1
Thank you very much for the loan information! I looked on the Department of Education’s website, and it appears to be a lot more straightfoward than I expected it to be.
@twoinanddone
While I appreciate the advice, a professional judgement doesn’t appear to be an option so close to the school year since there never was a significant change in my family’s ability to contribute for the 2017 tax year. My Estimated Family Contribution is really high considering my family’s true financial situation, but it seems the formula used for the FAFSA is biased towards income, and doesn’t take into account a family’s liabilities. I did use voluntary verification to significantly decrease my family’s EFC to increase my potential financial aid, and it helped significantly, but it’s still relatively high. My true EFC is non-existent considering my parents don’t contribute to my education costs. I do appreciate the advice though. I think @thumper1’s advice may be most beneficial in my current situation since my payment’s will be more fare in comparison to my post-graduation income.