Hi all. Please forgive me if this has been covered before. Cannot find this question answered. Child I am fostering received FA offer. The school is offering grants,pell and subsidized loan which covers most of tuition. There is 5k per year left. They suggest work study or private loan/payment plan for the rest. Work study option is not guaranteed and won’t cover all 5k so we need a few more options since she has no help with money. The subsized loan shown is 3,500 per year. Anyone know why the amount is limited on the letter to that if the annual max is higher? Thank you so much! I hope I was clear.
The subsidized loan is limited to $3500. Call the financial aid office. she can take the $2000 unsubsidized loan…as long as her need based aid does not exceed the cost of attending that college. Call financial aid, and ask.
Thank you! Not sure where I read it was higher. Seems so low with tuition being so high. I think the amount wasn’t much lower when I was in school! Thank you for the clarification. We will contact FA office to see what they suggest. Unsubsidized starts interest right away so we will need to find her another option.
The child is a foster child? If so, then likely will be considered independent for aid…and will get more in loans…but I think the Unsub amount is still 3500. The total will be 9500
Also can she get a summer job?
thank you! The information I read did not differentiate between sub and unsub loan amounts. I can’t imagine recommending an unsubsidized loan for a child in this situation so we will see what else we can find. Thank you all.
The only thing that starts right away on the unsubsidized is interest accruing.
Mom2 is correct…she can take $9500 in total Direct Loans as an independent studen…but she doesn’t have to take the full amount. She can take less.
If she gets a summer job, and can work during the school year part time, this will help too. Work study will also give her an employment history. Work study earnings are not used to calculate need based aid in subsequent years. Not q bad thing to work about 10 hours a week.
If she could earn $3000 for the year, she would only need a total of $5500 in Direct Loans, right?
If she takes the regular direct loan amount (not the additional $4000 she could get), $5500, $6500, $7500, $7500…the amounts for each year, her total would be $27,000. Payments would be $300 a month for about 10 years.
And it would be enough for her to pay for her college degree.
The SUB amount is $3500; the unsubbed will be the remainder of $6000. Was any of this unsubbed included in the financial aid offer?
While the work study isn’t guaranteed, it is available at most schools. If she can earn $3000 this summer, she’ll have enough to pay the $2500 (half of $5000) due in Sept, and be able to replenish it with work study money.
When my D was in college I paid the interest on her unsub loan so it wouldn’t compound. If you intend to help your foster D that is an option.
Thank you twoinanddone for correcting that.
Thank you all. She is contacting FA office Monday to see what other options (if any) they have. She will ask for information on how likely she is to get a work study job. If she has that, she can probably wing it and get a little help here or there.
As an FYI…she is eligible to take those additional Direct Loans any time during the 2016-2017 school year…as long as the whole process is complete before her school academic year ends.
So…if she finds herself short…she can apply for the Direct Loan amount in November, or March or whenever during the academic year. It’s not like she has to commit to taking it now.
What state do you live in? She may be eligible for an ETV grant for foster youth or youth adopted out of foster care. The grant is $5000 per year and you apply for it in July. It is not in every state. Check your state.
@crdub Your foster child was accepted to USC (CA)? If so, wasn’t all need met? I’m assuming that FA was filled out as an independent student. She didnt’ use your info did she?
Let me ask my sister if foster children in Calif get any special aid for college. She’s a director of a foster care agency.
It is not where you go to school but where you are a resident.
If you live where the ETV grant is offered you can use it anywhere.
Alabama, arizona, Colorado, Maryland, Missouri, New York, North Carolina, Ohio, Washington DC
other foster care states
She hasn’t received USC FA letter yet. This is for Carnegie Mellon. They covered a substantial amount. She was left with 9,500. Federal sub loan covers 3,500 and she is left with 6k. It isn’t much but we need her to cover this expected cost on her own since we hope to only fund unexpected costs and emergencies. They feel that work study and part-time work will cover the difference which it should. I am just a planner and wanted to see if she had another resource in case work study isn’t available or if summer work only covers her summer living expenses. She plans to live on her own then. We are hopeful that USC covers this much if not more but are still waiting on that letter.
As an independent student she can borrow $9500. If you do not live in a state where she is eligible for ETV, it can offset some of the loan leaving her with $4500 in loan. If this is not an option perhaps you and she can contribute to paying some of the interest on the unsub portion while she is in school.
It seems like her need is met. While no one certainly wants to take loans she may need to take her full loan amount to make this school happen. I would not be surprised if she gets the same loans from USC