Hi,
My kid is junior now and will be applying for colleges soon. Just wanted to check what are the options for loans. I am in H1 visa currently and expecting a GC (by not sure when)
I am looking for parents in the same boat who have actually paid or going to pay for their kids.
How much in loans do you need?
I am not sure, but how much can I get? Assuming the highest say my kid goes to Berkley (85k *4) or UCLA.(I am a PA resident) I may be able to fund for around 2 yrs from my saving.
Another factor which I will need to consider is my younger one is ready for college in next 6 yrs. Perhaps I have to think from that angle too. He is a US citizen so getting loans might be easy but just want to seek guidance here.
The loans your U.S. citizen student can get in their own name are very limited, and are a drop in the bucket for the colleges you posted for the current student. For freshman year, your student can get $5500 in their own name.
Because you aren’t a U.S. citizen, many private lenders will be reluctant to lend you money or even allow you to co-sign a loan for your student. This is because they need to be guaranteed that you will be in the U.S. should you default on your loan.
At this point, also, you cannot take a Parent Plus Loan either because you are not a U.S. citizen.
IOW, getting college loans when you are not a citizen here is very difficult.
I would strongly suggest that your student start looking for colleges that provide merit aid to international students.
Or look at colleges with $40,000 a year costs. If you can fund $85,000 times four, you probably can do $40,000 times four.
UCLA and Cal are also extremely competitive for admissions.
Your student needs to start their college search by finding a college they like, where they have a strong chance of acceptance, and is affordable without loans.
Maybe I’m missing something, but I think looking for loans to fund expensive colleges here is going to be difficult.
@MYOS1634 @Mwfan1921 might have additional information.
Let me clarify. I am talking about my 2 kids. One is a junior(in high school Grade 11) and the other is 6 years younger. The elder one is in H4 visa, and the younger one is a citizen.
Basically, I am looking for a strategy for sending both to college, one after the other. Idea is to save some for the younger too.(as you mentioned that he may not be allowed much on his name) Taking that into account, what are my options for taking loan, be it personal (in my name) or some form of student loan?
Are there people in the same boat here who can guide me? The difficulty of selection is a different topic altogether, but I’m trying to do some guesswork and prepare myself.
Perhaps @kelsmom can comment.
It is my understanding that getting a loan to fund college for your kids will be VERY difficult until you have a green card in hand.
It’s going to be very difficult until you /your older child have a green card. Once that happens, your child is eligible for federal funding, work-study etc. until then, it may be hard to find funding -you might have to do some kind of personal bank loan. If you have a mortgage, consider a heloc (not ideal of course). Also note that visa holders - even those that are resident somewhere and can qualify for instate tuition (this varies state by state for H4 visas so you need to check local rules ) - are considered international students and disadvantaged in admissions. Do you have any idea how long it is expected until you can get your green cards?
Not sure about the GC. My priority date is May 2015, but being from India and a long line, I don’t have much hope.
If there is somebody from India in the same boat, can they suggest some way? Is it possible to get a loan from India?
What is the highest limit of the personal loan that can be taken? Yes, HELOC is one consideration I have in my mind. 401k , I can borrow 50k .
I wonder if no one in this forum has the same issue?
You might want to read through this thread.
Thanks. Any more information is most welcome.
Tagging @DadOfJerseyGirl
If I’m reading this correctly, you are thinking to borrow $200k-300k for each child, as you say you have enough for the first two years for child #1 (so I’m assuming about $150-200k) but that you’d like to split that between the children.
I don’t think that’s possible for a non-citizen (so no federal loans, and thus all private loans) and even if it were I think it is a really bad idea. There are plenty of schools in the US, good schools, that are much more affordable. Your children will be better off not starting their lives post college with that much debt.
So research loans but spend more time researching schools, scholarships (some will not be available to non-citizens), state grants (or low cost state schools). Many children (including mine) have to face the fact that they can’t go to any school they want to and that the first consideration has to be cost. Mine each had many choices, but schools at $80k weren’t among them.
I know that as a new immigrant, with a green card, the only funding options we could get initially were secured (car, mortgage or secured credit card). The point made above - that as long as you are a visa holder a bank can’t be sure you’ll be around to repay - probably points to your heloc being the best option. I can’t imagine you’d get a lower interest rate out of India (even assuming you could get a bank loan there while residing elsewhere and exchange control allows it)
Your first step is to set a budget for Kid #1. Then only apply to schools that meet, or could possibly meet that budget. Will you qualify for need based aid at the schools that give need based aid to internationals? If you don’t qualify for need based aid you will be looking for merit aid. Does your student have high stats?
Depending on your budget and the kid’s stats, posters can give you school ideas.
As an international, you won’t be able to access much in the way of loans here. Perhaps the heloc could work, but I wouldn’t take out any loans that would impact the parents’ ability to save for retirement, pay bills, etc.
Kid 2 will qualify for $27K in total undergrad loans once they get to college (assuming the current program is in existence.) That’s $5.5K first year, then $6.5K/$7.5K/$7.5K.
US citizen students can borrow about $27,000 over 4 years in federal student loans, that’s it. Many students choose in state universities, or less selective oos or private universities, if they wish to go oos. There are many universities that are simply unaffordable to most.
Thanks a lot for all your information! Quite an eye opener.
Again if somebody actually took a personal loan can he/she share the bank/credit union names and what are the limit.
I’m afraid UCs are going to be off the table and universities that don’t offer merit are going to be difficult to fund for your first child.
Your US citizen child will be eligible for Pell grants if you don’t make much money and no matter how much you make that child will be eligible for 5.5k in federal loans per year (a bit more each year through senior year); in additional they’ll be considered a resident for in state public universities’ tuition and will be eligible for institutional grants (and, in PA, possibly PHEAA ).
So their situation will be MUCH easier.
As a result, you’ll have to focus some of your savings onto your first child, and explain why to both children so the second one doesn’t feel “disadvantaged”.
Has your junior child taken the SAT or ACT?
High scores+high GPA can often yield good merit aid.
You can focus on universities that meet need for internationals they admit, although they’re need aware; your son coming from a US state will be in his favor (he’ll compete with students from his HS, not with students from all of India) and I assume you have a US-levek salary which should be higher than most internationals who need FA.
That being said, things will be much easier if your child scores really high on the SAT or ACT.
Run the NPC on Lafayette, Franklin&Marshall, Bucknell, Dickinson, Lehigh, Susquehanna, St Joe’s, perhaps depending on how strong his academic record&ECs are Haverford and Penn. If the NPC looks like costs would be possible without a loan, visit, reach out. (Keep in mind the NPC is designed for US citizens so remove the federal loans and consider the amount the lowest you’d have to pay.)
Add PSU, Pitt, Temple.
AFAIK PA contract/state related universities (PSU, Pitt, Temple) consider applicants on an H4 visa international (aka, 60k cost of attendance) but do check what the situation is for someone who graduates from a PA HS.
Same thing with PHEAA grants for non citizens children who graduate from a PA HS. Look into benefits offered by your employers, either in terms of tuition benefits or scholarships.
The first colleges your child needs to identify is one that they’re sure to get into (acceptance rate for internationals is divided in 2 compared to the typical rate so anything below 25% acceptance rate is an automatic reach no matter their credentials, and you should find colleges where their odds are much higher)- a college they’re sure they will get into, that they like, and that you can afford.
These 2-3 colleges are extremely difficult to identify.
Your child needs to identify what they like about the targets and reaches: small classes? Access to research? Big spectator sports? A thorough core curriculum or on the contrary an open curriculum? Close knit community with residential experience? Strength of alumni network? Etc. Once they’ve identified what they like, we can help identify universities that share these characteristics but would be sure things for your child.
Wrt personal loans, banks won’t lend money for a child’s education when the parents may leave at any point.
An option could be to ask your older child to wait till you have GC but the system is so blocked right now it wouldn’t be fair to have them wait with no deadline in sight, especially since they could try and get a merit scholarship or if you qualify apply to private universities that meet need for the internationals they admit.
Just keep in mind a few things.
In the majority of cases, conventional wisdom is that international students could easily be full pay students at most colleges….unless they get merit awards, OR the family is eligible for institutional need based aid AND the college gives that to international students. Some colleges do not give need based aid to international students at all.
I agree….you need to figure out an annual budget and first off help your student find a college or two that meet that price point, and are reachable in terms of acceptance, and that the kid likes. Find those schools first.
Do you already have a HELOC? If not, this might be hard for you to get also.
I assume EB2 or EB3, yes looks like at least another 2 years which takes you past when your older child will start college, unfortunately.
Would you qualify for need based aid?