Original poster, take a look at Discover Student Loans. No loan application fees. No origination fees. No late fees. https://www.discover.com/student-loans/undergraduate.html
Maybe, maybe not for private loans, but she’d probably qualify for Plus loans. I don’t think it is a good idea to take out $85k in loans but people do it. As long as OP has not filed bankruptcy, is current on debts (very loose definition) and isn’t in default to the government on other loans, she’ll qualify for Plus loans. She doesn’t need to prove ability to repay or even that she has a job.
She didn’t ask if it was a good idea, she asked which were the best loans.
^And what are the repayment terms of the Discover loan, are you guaranteed to qualify for more loans year after year?
Why is CC not an option? If D has very high stats there might be other schools she could apply to and get enough merit to make it more affordable.
@maxedoutmom, I was a low income student, so I understand people’s desire to provide a traditional college experience for their kids. But not everyone is taking out large loans to pay for their children’s education.
My son had an acceptance to a college that offered a package where our net cost was a full third of the cost of attendance. It was a very nice school, but there were other colleges that offered his major that were just as nice and wouldn’t require us to take a $20k/year PLUS loan on top of a yearly $5500 federal student loan. He chose one of those and loves it. He can afford to socialize with his friends during the school year and travel with them on breaks. If community college had been what we could afford, he’d have started there like I did.
You don’t want to be in the position where everything has to go right in order for her plan to succeed. And you don’t want finances to be so tight that she can’t take advantage of all that college has to offer. I’d take a look at her other acceptances and find a more affordable option.
I realize that the mom didn’t ask if this was a good idea. However, I think it’s terrible to be pointing her to where she could get these loans.
I don’t point people to where they can find drugs, just because they asked and didn’t ask whether drugs are a good idea. Right now, the idea of getting a big unaffordable loan is like a drug. Everyone is anxious (mom and DD) and a loan would be the “quick fix” to take away the pain.
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She's done her part getting some scholarships and working a job herself, but with today's prices, it's just not enough.
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^^^
Those words give us a clear picture of what’s going on. Mom believes DD deserves to go to this school because “she’s done her part”…got accepted and got some aid. The next part of the sentence indicates that the mom thinks that “today’s prices” for colleges is what everyone is dealing with…and resorting to loans when income isn’t enough.
If going to a CC is “not an option,” then take a gap year and apply to univs where the aid is BETTER, and where SCHOLARSHIPS are better.
What are the daughter’s GPA and test scores? And what is her career goal?
I agree with everything @mom2collegekids is saying. I’ll add two points:
- The current price isn't actually what parents will end up paying. Tuition is going up much faster than the overall rate of inflation. A school that costs $62,000 now will probably cost $1000-2000 more each year. Unless @MaxedOutMom is sending her daughter to a school that guarantees the same tuition for all 4 years (and not many do), a cost of attendance that requires $21,000 in loans now may require about $25,000 for her D's junior year, and will certainly cost that much (or more) by the time she's a senior. $110,000 isn't much worse than $100,000 as far as loans are concerned, but only because $100,000 is already well above what's reasonable.
- During a gap year, OP's daughter can work and earn money towards college. If she doesn't move out, and works 30 hours a week for minimum wage, taking 6 or 7 weeks off, that's about $10,000 to help with bills and save for college, allowing OP and her D to borrow a more manageable sum for the first year of college. This in turn will reduce the amount of debt that's accumulating interest for 4 years, saving the family about $1.30 for every dollar in Parent PLUS loans they avoid in year 1. The D can also start putting money into an IRA, where its value will increase drastically in the next 40 years.
The best option is to apply to several schools that meet full need. If those schools aren’t reasonable bets for admission due to grades, test scores, etc. then the next-best alternative is to apply somewhere the daughter can get significant merit aid - enough to bring the family’s cost below $10,000. Generally, this will mean schools where the D is in the top 1-2% of applicants stats-wise, or those with automatic scholarships. Some turn their noses up at going to an “inferior” school, but that’s just silly - being a big fish in a small pond, while paying nothing or very little for the privilege, isn’t half bad.
In an ideal world, the family could afford the “dream” school (if that’s what the case at hand is), and this wouldn’t be an issue. In this situation, chasing merit aid or need-based $ is a necessity.
Thank you gunnerz for actually answering my question! You are the only one so far!
I am well aware of this slippery slope of too much debt. I am currently looking for a different job that will provide me a higher income so we don’t have to take out other large loans. I would have had one last month, had not the employee decided at the last minute to stay.
My daughter knows that she may have to leave this school and go to the instate state school if I don’t achieve this goal by December.
My original question was what are good places to get loans? Who have you been happy with? I appreciate everyone’s concern about my debt because it is a risk. -But for this first year, the benefits (including contacts and experiences) among others are huge. I don’t want to get into all of this publicly, but we have discussed it at length and found it worth the risk for the time being.
Does anyone else have a lending institution they have been happy with?
^for a school that meets full need, won’t the income of the NCP also be considered?
No disrespect to gunnerz, but s/he is a college student. There’s a reason college students can’t take these huge yearly loans out on their own.
If you want your daughter to cosign the loan, then go to,your local bank and ask about college loans. You might get favorable terms there.
If you want to take a loan in your name only, I would not dismiss the Parent Plus Loans.
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My daughter knows that she may have to leave this school and go to the instate state school if I don’t achieve this goal by December.
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Be aware that as a transfer student, your DD will not get much aid or merit…you may find that you’ll end up owing the same amount there
What would be the purpose of borrowing $20k and her going to the expensive school for one year?
If she did start at a cheaper school and then transferred to the expensive one, she would get her degree from it, right?
Was most of the aid you got from this school need based?
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Thank you gunnerz for actually answering my question! You are the only one so far!
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Gunnerz is a young student. Young students often do NOT understand the huge risks involved with such debt… That’s why THEY are not permitted to take on those loans without a qualified co-signer.
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I am well aware of this slippery slope of too much debt. I am currently looking for a different job that will provide me a higher income so we don’t have to take out other large loans. I would have had one last month, had not the employee decided at the last minute to stay.
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There’s some other things you may not have considered…
It sounds like you’re thinking that if you get a job that pays $20k more per year, then you won’t have to borrow.
If you do suddenly earn $20k more per year (and that would be quite a jump for a low income person), then you would likely suddenly find that you will now have to pay a bit more in taxes…and you may have to pay into a health insurance plan. In other words, you won’t be netting anything close to $20k per year additional.
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My daughter knows that she may have to leave this school and go to the instate state school if I don’t achieve this goal by December.
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does this mean that if you don’t get this new MUCH higher paying job by Dec, she will have to leave her school?
If so, this is such a risky path. If your DD has to transfer out of her school, she will not get much aid at her new school. Transfers get lousy aid in most cases. You may find that at her transfer school, you’ll be handed a $20k+ per year bill…then what???
What will you do if you don’t qualify for this private loan that you need for Fall term?
In addition, if your income goes up…it is very possible that your need based aid will go DOWN…
Oh my! Thumper just made one of the best points here. Once your income goes up, your DD’s need-based aid will go DOWN…so you’ll have to pay MORE.
Look at your DD’s award. If there’s a Pell Grant and other grants in the FA pkg, those will largely disappear once your income goes up.
The financial MAY change, but it may not. It sounds like the student will be at a private school. If the financial aid is all school aid, the school may not see a big difference in a parent making $20k and one making $40k as far as being able to continue to college.
It all depends on the financial aid awarding policies of the school. With a $20,000 incime, the student would likely have a FAFSA EFC of $0. If the school met full need, this family wouldn’t likely need a loan for 1/3 of the cost of attendance…$21,000 a year.
this sounds like a private school that doesn’t meet need. It sounds like the aid is a merit scholarship, a Pell Grant, student loans, work study, maybe a small amount of “school grant”…and the rest the parent has to pay.
Did the mom say that she only earns $20k per year now while working two jobs?
This is what the mom said. We don’t know her total income.
What benefits and contacts does one gain their first semester in college?
Is this NYU TISCH? Do you think your kiddo,will make contacts that will benefit her in the entertainment industry if she only is able to attend for one term…or one year?
I think it will be very difficult to tell your daughter she has to leave a college once she starts…and maybe even heartbreaking for her.
Sounds like a dream school…which is turning into a nightmare due to affordability.