Financial Aid and Appeals

<p>My university-calculated EFC was about 11k higher than my FAFSA EFC. I know my family is in a relatively high income bracket, but that doesn't mean that paying ~50k a year is easy, and 11k is rather substantial for us. I looked at the appeal form for my university and it seems like appeals are only for situations like job layoffs, higher than normal medical expenses... etc. However, this was not the case-- my family's income actually increased this past year so that definitely doesn't help my appeal argument. </p>

<p>I don't want to take out any unsubsidized loans because the interest rates are simply too high and I probably won't be able to repay the amount I borrowed plus all that interest that will have accumulated by the time I graduate.</p>

<p>Is there anything I can do? My school gives no merit aid. I want to apply for more outside scholarships, but I don't qualify for most of them. :(</p>

<p>Are you an incoming freshman?</p>

<p>Did you just find this out? </p>

<p>How much will your parents pay each year?</p>

<p>What do your parents tell you? Did they have a budget for you to work with? Do you have a less expensive alternative that you can still attend? Can you postpone for a year to figure out the finances? Can you do a freshman year or 2 years at a local college and transfer? $50,000 is an expensive college in the grand scheme of things....</p>

<p>I would suggest that you consider the Stafford loans. I know you don't want to take out loans, but if your school gives only need based aid, and you don't qualify for it, you have to get the money somewhere to pay the bills. </p>

<p>Have you discussed college finances with your parents? How did you plan to pay your college bills? </p>

<p>Financial aid awards should have been received when you got your acceptances. Did you consider your financial aid package when you were makiing your matriculation decision? What do your parents say about paying for college?</p>

<p>I am a rising sophomore at Brown, and I'm not planning on transferring. My financial aid package was a bit better last year when I was an incoming freshman. This year my parents will have to pay around 50k. I appreciate any help or advice you could offer. Thanks!</p>

<p>
[quote]
I don't want to take out any unsubsidized loans because the interest rates are simply too high and I probably won't be able to repay the amount I borrowed plus all that interest that will have accumulated by the time I graduate.

[/quote]
</p>

<p>The interest rate on unsub Staffords is 6.8% ($5.67/month per thousand), which is a bargain unless your folks are going to take a HELOC or private loans and have very good credit, and you can pay the accumulated interest monthly WHILE you're in school. The Direct Loan Servicing is online and the interest charge is quite manageable on a monthly basis for most students. </p>

<p>Most schools offer an interest-free tuition payment plan, for a small fee. If your parents can handle monthly payments that would be a good alternative. Or they can take Parent Plus loans for the remaining balance. The rate is 8.5% but payment can be deferred while the student is in school, so they could concentrate on funding as much as they can out of pocket, including paying the interest on the Plus monthly/quarterly to avoid capitalization, take reasonable amounts of Plus loans for the balance, and pay them back out of future earnings. Not ideal, but it seems like a workable plan in your situation...unless/until you transfer to a less expensive school!</p>

<p>I think you should discuss this with your parents. If you are simply trying to "contribute" to your college costs then the Staffords are used by thousands and thousands and thousands of students. Since you've already attended Brown one year then your parents understand the costs involved in sending children to a private college. Your parents are the key here, although you can certainly take out Staffords without asking them, they may feel strongly that paying that amount of money for your college education is not something they want you to be concerned or worry about. Meanwhile save your money from your summer job, and thank your parents for being in a position to send you to a great college.</p>

<p>Brown, as you know, offers need based aid only. If your contribution to Brown is calculated at $50,000 by them, you really are not eligible for need based aid based on your family's income and assets from 2009. Apparently these increased from 2008. </p>

<p>Your family has the choice of taking out the Stafford loan in your (the student's name) or applying for a Parent Plus loan (parent's name) or some other type of loan in the parents' name.</p>

<p>If you are a rising sophomore your Stafford loan would be $6500. To be honest, that is not a lot of loan debt for one year of study.</p>