How do I finance my education?

edwardlee · April 9, 2007, 7:47pm

Hello to all here,

I found this website by googling a few scholarships I was searching for, and thought I’d give it a shot and join. Let me first introduce myself, my name is Edward (hence my sn) and I’m a high school senior.

I probably a bit different than all other members as I am entering a college seminary in hopes that after college seminary I will study in a major seminary for the Catholic priesthood. I will be studying with the sponsorship (by name only and no money until major seminary) of my own diocese where I reside. Since they do not give me any financial assistence, I find myself wondering how I will pay for a private education. I will be studying at a college in Minnesota, there I will for certain major in Philosophy and will choose a second major, most likely Catholic Studies or Spanish. While studying at a private university I will live in a seminary, I will be living there, praying there, and receiving formation in humanities from the seminary.

The University of St. Thomas has given me the shaft on academic scholarships because of my lower ACT score. I have a 3.9 GPA and rank in the top ten of a class with 130 students. Because I scored a mere 21 on the ACT, they gave me the shaft. I retook the ACT and received a 20 the second time.

The regular cost of attending the a college in Minnesota, (tuition only) is 25,808 dollars however as a seminarian I am gifted with a 35 percent tuition reduction, bringing my tuition to 16,775.20 with required fees, double room cost and board/meal plan my total direct costs come to 24,553.20 rather than most students there who would be at 33,586.

My total Federal financial aid package is 12,310 dollars, including the St. Thomas scholarshiop, grants, work study, and the loan. However as a seminarian I can not accept work study of 2500 because the rector wants us to be more focused on our studies at the seminary. Thus I can only accept 9810 dollars of my aid, and my Estimated Feeral ACG Grant of 750, may be adjusted or cancelled upon evaluation of my final transcript. If that is taken away I would only have 9060, in aid for certain. However, the seminary as a fund for seminarians from specific dioceses, and they will be giving me a little money from that fund since I can’t participate in work study.

The cost of tution and room and board and such with 9060 estimated aid, comes to a need of 16748. In addition to that, they estimate 3164 in estimated indirect costs, bringing my need to a total of 19912.

Before summer I hope to save 500 dollars for college (yes, I started saving for college later than the rest) I come from a single parent household and when I did start saving, my fund had to be depleted to meet the cost of living expenses. Over the course of the summer I hope to save 3,000 dollars. Don’t know if it’s attainable, but it may entail working 40 hour weeks and then another part time job beside. So my final need with earnings happens to come to 16412.

I have applied for 23 scholarships. However, one of those in my database are the general local scholarships from the city I live in, which I am eligible for nearly 15 different scholarships. Of the 23, I have been notified or came to the conclusion that 8 rejected me. I still have a few that I applied for a while back that I am sure I didn’t win, but maybe memebrs here could tell me, they include Walmart, Best Buy and Burger King.

Now I am really confused how I will fund this education. I am aware of the Federal Plus loan. However, my mother is a single parent, and with that lifestyle comes buying a lot on credit, but not having money to pay the bills. Her credit rating is less than perfect. So I know for certain a Plus loan will be denied, and there is nobody that could cosign for the loan. According to the book from the college, if this happens, freshmen and sophomore year I am able to take out an additional 4,000 dollar Unsubsidized Stafford Loan (whatever that means). But when I apply for the PLUS loan, can I apply for a 16,000 dollar loan? What happens if I don’t need all of the 16,000? Can the money be returned, etc.

Even so, I would still need to finance 12412. I still have the option of winning some of the 13 scholarships that I haven’t heard back from, which most are only freshmen year non renewable, where as others are renewable for freshmen and sophomore year. I am hopeful I will win one with the letters of recommendation I have and because of my essays and involvement within the Pro Life movement. I’m hopeful I will be a top contender for our states Pro Life scholarship.

Other than that, how do I finance a college education? Where would be a good place to take out loans and the like.

In addition, after college, I will immedietly enter a major seminary, so any loans I take out will have to be deferred for four years until ordination to the Catholic priesthood.

Other questions I have, does my college choose who my stafford and my perkins loans are filed with? I know on the PLUS application I have to choose the bank.

My perkins and stafford, are those loans taken out in my name or do I need a co signer.

Anyways, I’m totally confused about everything revolving around college and financing this education. Any help and of these forum memebrs could lend, I’d appreciate!

Thanks a lot!

Edward Lee

latetoschool · April 9, 2007, 8:29pm

Hi there - may I suggest you ask the moderators to edit your post, so that your real name isn’t published?

As to your question, you do seem to understand the financial aid process very well, and I do not see how you can easily finance or borrow $12,000+ on your own, but, if you could, have you considered how you might pay that back considering the small stipend you will eventually receive once you are ordained? I’m asking because I wonder what the anticipated stipend will be for you, compared to the monthly payments for loans that appear as if they will total a sizable percentage of your education costs for four years, and, I wonder if that’s going to be workable for you.

Your perkins and stafford loans are in your name, and I do not believe they require a cosigner.

One issue: I am not sure, but think that declining work study can have implications to other types of need-based financial awards in future years.

Can you request a meeting with the rector, or some other seminary advisor, and ask for guidance, and to see what other options they might suggest? As an alternative, is it critical to attend this particular school? Is there any way to achieve your desired career path by attended your less expensive in-state college, and majoring in something similar (such as religious studies, or perhaps even philosophy)? Because this way you would not be faced with such a large amount of debt…and surely you could still become ordained?

edwardlee · April 9, 2007, 8:42pm

Lee is my middle name so my real name hasn’t been posted.

I could attend another college, but I would lose valued years of seminary, and as a result would have to participate in an additional two years of seminary after undergrad, although that would be paid for by the diocese.

Our diocese is looking at paying for the last two years of college seminary if one is willing to committ to major seminary. As a college seminarian I have to pay for four years of seminary and then they pay four. Whereas if I went to the regular college and obtained a degree, they would pay six. I’m also going to bring this up in my meeting with my bishop, how I feel I am being pentalized because I feel God is calling me from a young age.

The diocese is also looking at setting up a fund that would pay of seminarians college debts, however God knows how far along that will come at.

I’m going to be studying for the diocesan priesthood, the only type of priest who is “paid”. As a priest I will make 20,000 a year, and in addition receive a food allowance, a car allowance, etc. (This is what I have been told at least)

I also think federal loans can be adjusted to ones income, my band director was telling me about that.

I was givne the advise by my “spiritual director” that God wants me in college seminary, and that I shouldn’t worry about financing the education because God will take care of it. I have heard that the rector could find me a benefactor, which would be nice.

I have also heard seminarians receive a lot of gift money, and I’m going to put half of any gift money received to paying for college.

Finally, my diocese does do a loan for college seminarians where you can take out a loan and if ordained it will be forgiven. However I don’t know what the limit is, but I would look at taking out 1,000-2,000 via that option if funds allow.

Thanks,

Edward Lee

latetoschool · April 9, 2007, 9:05pm

I suggest that you should collect all of your paperwork, do your total expenses and loans on a spreadsheet, and sit down with your rector, explain the situation and ask for empirical based responses as to exactly what support, loans, forgiveness, etc. you can expect. Perhaps he can offer reassurances, as well as specific, actionable avenues of assistance. Surely he has mentored numerous other young men down this road before and he has to have far more knowledge, experience and access to resources at his fingertips than anyone here on CC is likely to have.

I strongly caution against going into this based only on verbal reassurances - it’s too risky, and, there are very serious consequences to credit scores and other matters if you should find yourself in a situation in a few years where you may have difficulty meeting loan repayment obligations.

I do have to take some issue with the spiritual director advising not to worry about financing because God will take care of it- while I’m sure that’s probably true on some level, you need to know exactly how that is going to happen, what your specific obligations are going to be and when those obligations come due, and what choices you may be able to choose from that will minimize future debt, or restrictions as to career path even within the priesthood.

NikkiiL · April 10, 2007, 6:14pm

My advice would be to pray about this situation. If it is truly God’s intention for you to start seminary…He will make a way, even where there seems to be no way…and even if you do not know precisely how it will be accomplished. While I know that latetoschool’s advice about “knowing exactly how it will happen” is well-meaning…to be quite honest, it depletes the entire faith in God’s promises. While I would not suggest taking your spiritual director’s advice as Gospel…God does call us to take a leap of faith, trusting that He will provide. So long as you are certain deep within your soul that this is the right move for you…It will work out for His greater good. Remember, edward, we can only see His perfect plan in part…but that doesn’t lessen His control over the situation.

hsmomstef · April 10, 2007, 8:35pm

my son has also considered attending college seminary and we have discussed the financial ramifications. From his research and discussions, he is adamant about taking out as few loans as possible because those loans will impede his ability to serve after graduating. Large loans amounts will be the focus of your life after graduating because you will have to pay them off – for many, many years. And $20,000 will not go far at all, even with a living allowance. The loans cannot be adjusted for income, but the amount you pay monthly can be adjusted – but it will still be significant with large loan amounts.

I will admit that I am not a person of faith and I am very much a pragmatist – however I have a great deal of respect for those who are called. My biggest concern is that large loan amounts would limit who you could serve after graduating and how well they could be served.

How do I finance my education?

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