<p>My child may be getting Tuition Exchange for their ED school (I work in a private college so we have about 500 schools where our children can apply, although not guaranteed).
The full amount of the TE would come to $36K and the school will roughly cost $51K.
In an e-mail from the school, we were told that if we filled out the FAFSA application, they would also qualify for the Federal Direct Student Loan of $5500.00.</p>
<p>Are there other “student loans” where we/my child can apply to make up the $9,500. Are there student loans where this can be done? What is the Stafford Loan? Is that something I need to look into.</p>
<p>We will not qualify for any need based loans. We are a 3 income household since my dh is retired, collects a pension and is now working another job.</p>
<p>Stafford loan and Direct loan are basically the same loan. The limit is $5500 for a freshman. You used to be able to either get a direct loan directly through the school that participated in the direct loan program, while Stafford loans were through outside private lenders for schools that did not participate in the direct loan program. Now all schools must participate in the direct loan program. So there is not an additional loan source there, just the one loan.</p>
<p>Your options are parent PLUS loans (which would be in parent name), private parent loans (parent name), or a private student with the parent as the cosigner.</p>
<p>$15k a year is much too high a loan amount for a student to have in their own name. They would be graduating with $60,000 in debt, plus any interest that has not been payed while in school. Unless you plan to pay the interest while in school, that is probably an additional $12000 in interest. So starting working life with $72k debt = $800+ a month in loan payments every month for 10 long years. If the parents are planning on taking out some of the loans (and can afford to do so), then this may be doable.</p>
<p>Thank you.
I would prefer to keep this on the loans and not about costs after college.
We plan on helping pay back the loans but that is not about my question.</p>
<p>So, my options are Direct Loans, another $5,500, or ParentPlus, where we can borrow the full amount, per year?</p>
Your options for the first $5500 are direct loans which are $5500 that you already know about. There is no “another $5500” (not quite sure what that meant). The amount of the direct loan eligibility increase a little each year $6500 sophomore year, $7500 3rd and 4th years</p>
<p>For the balance of $9500 you have the option of parent PLUS loans (which are federal loans for parents and would be in parent names not student name), or private loans either in the parent name or in the student’s mane with the parent as a cosigner. So really the only additional student loan is a private loan where the parent cosigns. Any others would be in your own names. </p>
<p>I guess another option is an equity line of credit on your house (if they still do those in these times - I don’t now - I believe they are not as common as they used to be).</p>
<p>If you’re not set on one particular school, is there a school amongst the 500 schools on your TE list that would also give your child a merit scholarship for his stats?</p>
<p>Thank you. The school my child loved informed them they would do an early read on her application and let us know if they would give them the TE before they even applied.
We sent in the paperwork (copies of Common Ap, Letters of Recommendation, Essay, SAT and SAT II, etc.). They came back with a letter informing us if they keep their grades as is and they appy ED, they will get the TE.
TE is not guaranteed and the school is a “more selective” school and their first choice.
So, for $15K, which is just a little over what we would pay for a CUNY school here, we are all VERY VERY happy! They have worked extremely hard since grammer school and HS to get to this point (me too LOL).
I appreciate your help! Thank you VERY much.</p>
<p>Also, what is the CSS form, is it different than FASFA?</p>
<p>Yes. CSS is an aid application form provided by college board that you pay for. It is used by about 300 schools, mostly expensive ones, that generally offer generous institutional (their own money)aid. Schools that require CSS generally require both FAFSA and CSS. FAFSA for federal aid (including loans) and CSS for institutional aid.</p>
<p>If the school is a $51k school, it is possible they require CSS.</p>
<p>Thank you. I’ll look into that too.
Once they officially apply and get an official acceptance, then I am going to call and see if I can add any merit scholarship money into the mix (although most TE schools do not allow this to happen).</p>
<p>The webpage for the school said that the FASFA form had to be filled out within one week of applying ED but from what I have read here, the form is not yet available to send until January 1. Am I even more confused than I think I already am?
I have been very involved in the college search but my dh is the person that does takes care of the money/bills so I have not yet researched about the loans, I just knew we needed them and would take them out and then help pay.</p>
<p>We are all so excited but will need to wait until about Thanksgiving to get the official response. My poor ds is in 8th grade and taking a test to get into the private HS he wants to get into and feel bad that all this attention has been going to my other child, although I do keep on top of him to study and he does have a tutor 2 times a week for the test. But my oldest did the same thing so it’s not new like the college search has been.</p>
<p>Anyway, can you let me know about the FASFA and the January 1? Perhaps I just submit now and again after our taxes? Thanks SOOO much!</p>
<p>Well you are right, FAFSA for 2012-2013 can’t be submitted till January 1st. It is not even available till then</p>
<p>I would suggest asking the school exactly they want. Maybe they want you to submit the 2011-2012 version just as a preliminary look see (though you would have to submit the 2012 one later as well), or maybe they are talking about CSS, or even some form of their own (yes schools have their own forms as well). Definitely best to find out from them exactly what they want.</p>
<p>Thank you swimcatsmom.
When they send in the CommonApp and hit submit and then send the scores from CollegeBoard, I’ll then call and speak to the Financial Aid office and ask them.
Thanks so much!</p>
<p>I looked at the college checklist today for ED and we need to do the CSS form within a week of applying ED not FASFA. Does this sound right now.
Thank you all very much!</p>
<p>Also, when do you begin to apply for the other loans, for instance, parentplus?
Is that when you get the acceptance letter or does it have to be after January 1, 2012.</p>
<p>You really don’t need to apply for loans until May or later. Wait until the dust settles, you have accepted FA offers, made deposits, etc. Federal loans process quickly.</p>