Should I Get A PLUS Loan?

I am about to graduate high school and I’m beginning to receive college admissions decisions. I qualify for need based financial aid. I was accepted to Penn State University and the financial package I am being offered includes a Pell grant, a subsidized loan, and an unsubsidized loan. After reviewing the package and the total cost of tuition, I am sill short about $39,000 per year. I was also accepted to Iona College for which my award package includes grants, loans, and scholarships totaling up to $50,000 which is just over the cost of tuition. My question is should I apply for a PLUS loan to attend Penn State or should I go to Iona College and avoid having to spend years paying off over a hundred thousand dollars in loans?

Note: I am a Hispanic New York resident, I looked into some scholarships for people of Hispanic heritage but I’m unsure how to apply for any. Penn State is my #1 choice. I want to major in Biomedical Engineering with a focus in Biomechanics. Penn State has the exact program I want but Iona College does not which means I would have to find a different area of study. I also got accepted to University of Delaware; after reviewing the package they offered me, I am still short by almost $19,000.

Penn State is not worth crushing debt. You’ll have to go to grad school for BME anyway, so that’s MORE schooling to borrow for.

PLUS loans are for parents, so your parents would be taking them out. Will they agree to take on 160K in debt? (and that’s on TOP of the loans the school wants you to take! Oy).

Hard truth: Penn State is not affordable. That is an unmanageable amount of debt for anyone, but especially someone Pell eligible. I wouldn’t go 60K into debt for Delaware, either. What’s your gap and ultimate per year cost for Iona?

What are your GPA and test scores? You migt have been able to get one of the diversity scholarships from University of Pittsburgh.

What is your home state?

You would be looking at almost $160,000 in Plus loan that your parents would have to sign for and also about $30,000 of your own student loans.

Penn State is not worth almist $200,000 in debt for a bioengineering degree.

Since you qualify for Pell grant it would not be wise for your parents to try and take out loans of that magnitude.

According to Iona’s website, tuition would cost $50,984 per year (found here: http://www.iona.edu/Student-Life/Student-Financial-Services/Student-Accounts/Tuition-and-Fee-Schedule.aspx ) It varies depending on the courses I take. I am still waiting for more admissions decisions but these are my options as of right now.

http://main.abet.org/aps/accreditedprogramsearch.aspx

You can find ABET accredited engineering programs at the above website. Look for some in your state. If you are Pell eligible maybe you can also get a state grant.

Do you have GPA or test scores that would get you merit like full tuition somewhere? Then you could pay room and board with Pell, direct student loan and summer work earnings.

But really, how did you think you would pay for a school that costs $50,000 with a $5800 Pell grant and $5500 student loan?

Did you apply to SUNYs if you live in NY? SUNY Buffalo might have given you a good scholarship. You can also get TAP of a few thousand probably if you stay in state. @sybbie719 what is that low income student program called? EOP?

Iona’s Tuition and fees are $36,584 and the Cost of Attendance is over $51K. Are you from NYC? You should consider CUNY-CCNY or other SUNY schools. Penn State and Iona College are unaffordable. CUNY-CCNY tuition is about $6,500 annually.

http://bme.ccny.cuny.edu/

There are ample research opportunities at the NEW City College Center for Discovery and Innovation and/or the CUNY Advanced Science Research Center.

https://www.ccny.cuny.edu/research/discovery

http://asrc.cuny.edu/

Were you not aware of the COA for Penn State out-of-state? They routinely gap PA students; of course, they’re going to gap students in other states. I’m surprised you GC didn’t explain this to you.

What are your other options? And what is your family’s EFC?

No…do not take out $39,000 in loans a year to go to Penn State.

That’s $160,000 in loans just about…and that doesn’t in account for increases in costs every year, and the interest on the loans.

I’m hoping you applied to some instate public universities in NY state. These would be much more affordable for you. Instate costs to attend the SUNY schools is much more reasonable.

I believe if you got the Pell, you would also be TAP eligible…plus that Direct Loan.

Do NOT go into that kind of debt…not worth it at all for undergrad school.

@Radioactyve, You can only take out the federal student loan (~$5500/year) on your own (~$27k total for 4 years). Anything beyond that isn’t affordable for most families. Did you apply to any SUNYs?

this is going to be long, so stick with me:

Right now do you have any affordable options? If you live in NYC, did you apply to CUNY?
At my high school every single student must apply to CUNY.

If you have enough to cover the cost of attending Iona then go. You are never ever ever gonna get enough $$ to attend Penn State. Does your 50k at Iona have any loans over $5500 student loans? If there are plus loans take it off of the table.

I used to work at a school that was 85% Title I (free/reduced lunch) at that school some options were automatically off of the table; OOS universities that did not meet 100% demonstrated need. OP needs to remember that that the role of a state university system is to provide an affordable option for their taxpayer base.

The cost of the CUNY application is incorporated in the senior dues (this part is collected at the end of junior year). A parent must sign an affidavit stating that their child is opting out of CUNY and they understand that by doing so, that they may not have any financially feasible college options come spring. We document, it in ATS and all paperwork becomes part of the student permanent record (this way when a student/parent is railing that they can’t go to college and they did not get enough money, we just pull out all of our documentation).

I have straight up told Penn State, that it would be irresponsible of me to invite them to our school, because it will never be affordable to my student base (I have no one who throws long or has a great rushing game or is a Div 1 sport recruit). If a student/parent is insistent on applying, we meet, run the net price calculator together and have them fill out their affordability story as to how they are going to make this work, sign it and it becomes part of the student file because some people need to write out a plan and see in black (blue) and white how to make their situation work.

OP being a NYS resident, and having an income low enough to be Pell Eligible, should be looking first and foremost at the economic eligibility grids for opportunity programs, whether it is CD @ 2 year CUNY schools, SEEK @ 4 year CUNY Schools, EOP at most of the 64 CC & 4 year SUNY schools or HEOP at the more than 50 HEOP schools. We are talking about over 100 schools in their own back yard where they can cast a wide net to get an affordable option.

HEOP list of schools (page 10/11)

http://www.highered.nysed.gov/kiap/colldev/HEOP/documents/HEOPWebBrochure2013-14.pdf

SUNY EOP Profiles and Economic Eligibility guidelines:

http://www.suny.edu/media/suny/content-assets/documents/summary-sheets/EOP_profile.pdf

CUNY Freshman Profile (economic Guidelines will be the same, but she will know the grade/gpa ranges)

http://ithsnyc.org/2013/files/CUNYAdmission-Profile-Freshman.pdf

If OP is living and dying by engineering and is in the top 10% of her class, she is still eligible for the cost up to SUNY/CUNY tuition as at any of the SUNY/CUNY schools or the the statutory colleges at Cornell University and Alfred University, beginning in the fall term following his or her high school graduation.

https://www.hesc.ny.gov/pay-for-college/financial-aid/types-of-financial-aid/nys-grants-scholarships-awards/nys-science-technology-engineering-and-mathematics-stem-incentive-program.html

there are 36 ABET Accredited engineering programs in NYS:

http://main.abet.org/aps/accreditedprogramsearch.aspx

with the exception of the military academies, Excelsior, Iona and Pace all of them have an opportunity program attached to them (SEEK, EOP, HEOP).

If she is graduating in the top 15% of the class, she will be eligible for an NY-AIMS scholarship that she could use at any school in NYS. $500 a year for 4 years (puts a dent into the book money)

https://www.hesc.ny.gov/pay-for-college/financial-aid/types-of-financial-aid/nys-grants-scholarships-awards/nys-achievement-and-investment-in-merit-scholarship-ny-aims.html

If OP os graduating somewhere in the top 4/6 of her high school (the counselor will know how many scholarships are given at their school), she may be eligible for the NYS Scholarships for Academic Excellence provide up to $1,500 per year (for the person ranked #1 and $500 for the other recipients) for up to five years of undergraduate study in New York State.

https://www.hesc.ny.gov/pay-for-college/financial-aid/types-of-financial-aid/nys-grants-scholarships-awards/nys-scholarships-for-academic-excellence.html

My kids, know what I am going to advise them like a mantra; Follow the money. If that means, you get into Community college @CUNY with College Discovery, vs some other school that did not give you adequate aid (Iona, Pace, etc), follow the money, kill at community college, complete the associates and transfer into a EOP/HEOP program at one of the 4 year schools.

Did you apply for Questbridge? Is your school a Posse school? If yes, were you nominated and go through the process?

IF OP was hell bent on leaving NY, then she needed to look at schools where she was a viable candidate to get big merit $$ or that meets close to 100% demonstrated need.

If you do not have any affordable options, remain friends with your GC, get your recommendation letters as part of your file; regroup, take a gap year and apply again (unfortunately you will not be eligible for any of the state scholarships which you must use coming straight out of high school)

hope this helps

OP, after you read post #11, please re-read it. Lots of good info there.

Thank you @sybbie719!! I knew you would know how to advise a low income NYS student.