Slightly different situation: broke.

Paying for College
1

<p>Hi, I’m going to be starting my Junior year at Rensselaer Polytechnic Institute this August…wait, in two weeks. Anyway, my old man never told me to worry about money, and as a result, I was surprised when he told me that we’re ass broke. I guess I can find a means to make ends meet for this semester and maybe the next, but my senior year is going to be nearly impossible for my faimily to support me financially. Since I never really had to worry about monies or anything of the sort, I know next to nothing about financial aid, student loans and whatever else there is, and the official websites seem to be taking me in circles, answering questions with more questions. I guess I came here for a definitive answer from people who actually went through this and are, therefore, pros (I was here as a little freshman freaking out about college two years ago too ;D).</p>

<p>Okay. So I am a full-time student going for a Bachelor of Science in Aeronautical/Mechanical Engineering. I am currently pulling a 3.33 and I have been awarded (for the past two years, and now) the following: </p>

<p>Federal Direct Subsidized Loan $5,016.00
Federal Direct Unsub. $2,484.00
Room and Board $5,000.00
Rensselaer Merit award $7,500.00
Rensselaer Grant $7,500.00
total: $27,500.00 </p>

<p>and the cost of attendance is ~$57,000.00
making an approximated 30k difference. </p>

<p>Now the questions I have are these:

  1. If my parents can no longer support me, do my Federal direct subsidized and Unsubsidized loans go away? My parents are currently paying for them.
  2. What is the best course of action for me?
  3. I already accepted the full loan amount (because my dad is really dumb and JUST told me right now instead of telling me before I accepted all this debt.) Am I allowed to cancel the reward for the Spring semester?
  4. I don’t mind being up to my ears in debt, but the question is whether I can get myself in that much debt. What are these… student loans and would I be able to muster up some amazing amount like 30k for about a year without a co-signer?
  5. I don’t want to drop out of college in my senior year because I can’t pay for my ass. Please Please tell me anything that’s hiding in the bushes. Neither do I know what to expect nor do I know how to react to it. This totally caught me off guard, if you couldn’t tell.
  6. Thank you. Oh, I’m from California and I work at an Immigration Law firm in the summers, making me some considerable cash monies (although I look at my cost of attendance, and my considerable cash looks like loose change now…). I hope this is enough information. </p>

<p>I am forever in debt to College Confidential. (I’m in debt anyway. Let it all in. ahah)</p>

2

<p>First, you need to find out why your parents are broke. Has their been a change in circumstance such as someone losing a job, illness, medical expenses, a death in the family or disability? If so, contact the financial aid office and ask them if you could be considered for more $. Realize that the answer is probably no and most people who DO get a change because of something serious are only talking a bit more $ (like a thousand or two). </p>

<ol>
<li>If my parents can no longer support me, do my Federal direct subsidized and Unsubsidized loans go away? My parents are currently paying for them. </li>
</ol>

<p>No, they don’t “go away.” I don’t know why you would want them to go away-- they are there to help you pay the bill. Why are your parents paying for them? They don’t begin repayment until 6 months after you graduate. Your parents should stop paying the loans and contribute that $ to your current expenses.</p>

<ol>
<li>What is the best course of action for me? </li>
</ol>

<p>If you don’t have enough $ to pay for school, you really have no other choice but to stop going to school and work. </p>

<ol>
<li>I already accepted the full loan amount (because my dad is really dumb and JUST told me right now instead of telling me before I accepted all this debt.) Am I allowed to cancel the reward for the Spring semester? </li>
</ol>

<p>If you don’t go to school, the loans won’t pay out so you won’t be responsible for them.</p>

<ol>
<li>I don’t mind being up to my ears in debt, but the question is whether I can get myself in that much debt. What are these… student loans and would I be able to muster up some amazing amount like 30k for about a year without a co-signer? </li>
</ol>

<p>No, what you were awarded is the maximum amount of federal loans an upper-level student can get. I don’t think you could get $60K in additional loans without a co-signer.</p>

<ol>
<li>I don’t want to drop out of college in my senior year because I can’t pay for my ass. Please Please tell me anything that’s hiding in the bushes. Neither do I know what to expect nor do I know how to react to it. This totally caught me off guard, if you couldn’t tell. </li>
</ol>

<p>There’s nothing “hiding in the bushes.” There’s no money tree. </p>

<p>If you can figure out a way to pay for one year of Rennselaer, is there a way to transfer to an instate school and would that cover your last two years?</p>

3

<p>Transfer to a Cal State school. A bachelor’s degree from a CSU will be a whole lot more valuable in the marketplace than an unfinished three years of study at RPI.</p>

4

<p>Two corrections to my post: </p>

<p>‘there’ not ‘their’ </p>

<p>and </p>

<p>Student loans begin repayment 6 mos after you stop attending school at least half-time, not 6 months after you graduate. So if you finish 3 years at RPI and can’t graduate, you’ll still have to begin payments 6 months later.</p>

5

<p>You should drop from RPI and try applying to a CSU like Cal Poly. Take the gap year and save up money in the meantime. If your parents are super broke, you might even qualify for a Cal Grant and/or Blue & Gold for the UCs–so visit your local CCC or CSU or UC and find out what you might qualify for. DO NOT LOAD UP ON CCC classes… Cal Grant and Blue & Gold have limits on semesters in school (even if you don’t use the benefits)–so save your Junior status as is so that you can qualify for 2 years of California Cal Grant and/or Blue & Gold if you qualify for either of those.</p>

<p>If nothing else, even without those grant programs a CSU or UC should be infinitely cheaper for you as a Cali resident (I presume you graduated a Cali HS, which will seal that deal for you).</p>

6

<p>One of my closest friends’ sons is in the same position in the same school, but a year ahead of you. Find somewhere else to go ASAP. If you can’t make this year work, you REALLY won’t be able to make next year work, and with residency requirements at many universities, if you drag it out one more year, you could be making things much worse for yourself. My friend’s son is trying to transfer, but many institutions require a certain number of credits completed there in order to receive a diploma, so his failure to transfer last year when the situation blew up means that he will likely have to add another year.</p>

7

<p>If your parents are unable to pay because of a loss of income or unreimbursed medical expenses, you should contact the financial aid office. gather all of your documentation, so that you will be able to fax it over. They may be able to come up with some need based aid. Keep in mind RPI does not meet 100% demonstrated need so most likely they will not be able to give you 30k.</p>

<p>i agree with the others who say withdraw now, while you can with out penalty. take the year off, and apply locally for either the spring or fall term in California. Hopefully you will be in college before your loans come due.</p>

8

<p>

</p>

<p>If this student completes three years at RPI…and then transfers…she/he would need to likely complete TWO more years at their new school…most schools want to award degrees from THEIR school to students who are there for at least two years…not one.</p>

<p>To the OP…what did your parents think you were going to do this year? Have you asked them this question?</p>

<p>I would suggest taking a year off, working, and then applying as a transfer student to one of the CSUs.</p>

9

<p>Thumper, I am fully aware of residency requirements. I think you misread my post. As I wrote, if he has the $ for one year at RPI, he could transfer and do TWO years at an instate school.</p>

10

<p>2colleges…OH I see…you are suggesting he take the money he would spend on ONE year at RPI and use it for TWO years at a CSU…that is a VERY good idea. Very true…the money he would spend on ONE year more at RPI could very well pay for him to complete his undergrad degree. Great idea.</p>

11

<p>A gap year to earn money is one thing. I’m not sure where you can apply now for fall semester that would be anything like your jr year at RPI. Especially in A/ME.</p>

<p>Agree you need to speak with FA- a FA officer (not just the phone answerer.)</p>

<p>Would your parents take a Parent Plus loan? Perhpaps you would delay payments on your Staffords (as above) and agree to take on some or all of the PP loan repayments, after graduation.</p>

12

<p>Did you look at his gap? $30,000 - and it won’t get smaller next year. Taking out $60,000 in PLUS loans on top of four years of full Staffords will result in student debt of close to $90,000. That translates to monthly payments of $1,000+ for the next 10 years.</p>

13

<p>He said he could eke it out for jr year.
He needs to s/w FA- partly because they might come up with work study and/or some extra funding.
We don’t know the details. His “considerable cash” from summer employment would be subtracted from any PP loan. Senior year, his FA could change, if the family position is indeed dire. Too much we don’t know. But agree, important to consider total indebtedness.</p>

14

<p>He needs to “eke out” $30,000 for this coming year…in addition to the Stafford loans.</p>

<p>He could ask about work study but that isn’t going to cover a $30K gap.</p>

<p>My question…to the OP…has there been a change in your family’s financial circumstances since you completed the FAFSA…did a parent lose a job or something of this nature? If so, you SHOULD discuss this with the financial aid office.</p>

<p>Honestly If you can help it, I would suggest you do NOT take out additional loans.</p>

15

<p>Donut, I can only imagine how bad you feel. It could have been worse, they coould have waited longer to tell you</p>

<p>You must notify RPI you will not be attending this fall. You can ask for a LOA, whatever, but you must not get charged for classes this fall. Dont just not show up. You can write a nice email, that you love the school, but finances dictate you can not continue. Then you must work on in-state applications.</p>

<p>PS to anyone else who knows someone else in this position (or worse), the SUNYs (NY state schools) generally accept up to 90 credits as transfers. Of course kids have to worry about major, gen ed, etc, but my understanding is that they do try to work with kids.</p>