Paying for college

[Plucky]

We don't know if my ds will receive anything from his college of choice. Our EFC is pretty much the university's estimated yearly cost. Of course we cannot pay that.

 

We have the 1st year's tuition through a 529, he will pay for his dorm (saved from his job), and we'll pick up books and food for the first year. I want to do the very same next year but we are going to have to really scrimp and find money from somewhere.

 

By his junior year he will have to fund it on his own. We make too much money (in a high col area) for him to get subsidized loans. So what should I know about these student loans? I need to do some research I know.

 

Also, if possible we would like him to come home for the first 2 years after his BS and work to pay off his student loans even if he marries. Now that is up to him but he's as frugal as his parents. LOL

 

Any tips, ideas, experiences, links? We are in, now we have to figure out how to pay for it. :confused:

[creekland]

I can't help with most of the 'stuff,' but I can say that by buying books online (mostly) I've been able to cut our cost down to 1/3rd of the cheapest available from the bookstore for my oldest.

 

At U of Rochester our tour guide flat out told us (when passing the bookstore) to not buy books there, but shop online. Look for books in the condition you want and from a seller with good feedback ratings (although I've gotten some really good deals buying from sellers with few ratings - not low ratings, but few).

[Jane in NC]

A couple of ideas. Students can apply for grants within their departments once a major is declared. I would encourage your son to explore his options! Also, your EFC will change annually. This can alter the financial aid picture for him.

 

RAs can earn free housing, meals and/or a stipend, depending on the school. At my son's college, there are other options to reduce the cost of the housing.

 

College bookstores buy back books at a pittance. Your son can try to sell books directly to another student at a price that is lower than the bookstore and all parties will be happy.

[Brenda in MA]

We make too much money (in a high col area) for him to get subsidized loans. So what should I know about these student loans? I need to do some research I know.

 

If you fill out the FAFSA, your son can take non-subsidized stafford loans of $5500 (freshman), $6500 (sophomore), $7500 (junior & senior years). The rate at this point, 6.8%, isn't great, but he can take these loans out in his name only. For any other loan, he will most likely need a co-signer.

 

I also like a PP's idea of him pursuing the idea of being an RA. If that entitles him to free housing, it could be a really good deal.

 

I'm not a big advocate of loans, but sometimes, they are necessary, and if your son is preparing to enter a field that pays well, he should be able to pay off the loans fairly quickly after graduation.

 

Best wishes!

Brenda

[Kathy in Richmond]

a few thoughts:

 

Does his college require that he be on a meal plan? My son saved a lot of money by choosing a dorm where he could cook his own meals (much healthier, too).

 

On campus jobs: My son's favorite part-time job during the academic year was working at the front desk in his dorm. He chose early shifts on the weekend when it was pretty quiet & got a lot of homework done while being paid. Look for campus jobs on-line over the summer if at all possible; the good ones can go fast.

 

After the first year or two, look for paid summer internships. Some departments host job fairs that include summer positions for undergraduates.

 

Used books for sure! Sometimes upperclassmen were kind enough to loan books for certain classes. They were also the source of the least expensive used books for both of my kids (yes - avoid the bookstore!)

 

My son took the maximum federal student loans mentioned by Brenda. He paid off the unsubsidized portion first, since they accumulate interest from the start. He's very frugal (like his parents; we won't talk about his sister!) & they're all paid off already.

[Plucky]

I can't help with most of the 'stuff,' but I can say that by buying books online (mostly) I've been able to cut our cost down to 1/3rd of the cheapest available from the bookstore for my oldest.

 

At U of Rochester our tour guide flat out told us (when passing the bookstore) to not buy books there, but shop online. Look for books in the condition you want and from a seller with good feedback ratings (although I've gotten some really good deals buying from sellers with few ratings - not low ratings, but few).

 

Oh, how well I know this. I don't ever buy or sell books at the bookstore. Online is the only way to go.

[Plucky]

A couple of ideas. Students can apply for grants within their departments once a major is declared. I would encourage your son to explore his options! Also, your EFC will change annually. This can alter the financial aid picture for him.

 

RAs can earn free housing, meals and/or a stipend, depending on the school. At my son's college, there are other options to reduce the cost of the housing.

 

 

Oh, that sounds like something to check out. Yes, I will have a second one in college in a couple years that should surely bring change the EFC per kid.

[Plucky]

If you fill out the FAFSA, your son can take non-subsidized stafford loans of $5500 (freshman), $6500 (sophomore), $7500 (junior & senior years). The rate at this point, 6.8%, isn't great, but he can take these loans out in his name only. For any other loan, he will most likely need a co-signer.

 

I also like a PP's idea of him pursuing the idea of being an RA. If that entitles him to free housing, it could be a really good deal.

 

I'm not a big advocate of loans, but sometimes, they are necessary, and if your son is preparing to enter a field that pays well, he should be able to pay off the loans fairly quickly after graduation.

 

Best wishes!

Brenda

 

Yes, he is eligible for a Stafford. I think we will have him do that. I am not into debt at all, but the interest doesn't start until he graduates correct?

[Plucky]

a few thoughts:

 

Does his college require that he be on a meal plan? My son saved a lot of money by choosing a dorm where he could cook his own meals (much healthier, too).

 

On campus jobs: My son's favorite part-time job during the academic year was working at the front desk in his dorm. He chose early shifts on the weekend when it was pretty quiet & got a lot of homework done while being paid. Look for campus jobs on-line over the summer if at all possible; the good ones can go fast.

 

After the first year or two, look for paid summer internships. Some departments host job fairs that include summer positions for undergraduates.

 

Used books for sure! Sometimes upperclassmen were kind enough to loan books for certain classes. They were also the source of the least expensive used books for both of my kids (yes - avoid the bookstore!)

 

My son took the maximum federal student loans mentioned by Brenda. He paid off the unsubsidized portion first, since they accumulate interest from the start. He's very frugal (like his parents; we won't talk about his sister!) & they're all paid off already.

 

Such a smart boy you have! He doesn't really cook much. Yes, a food plan is required but we are going to start with the smallest amount and add to it later if need be. He's going to start in the dorm and meet people in his field, make some new friends and then next year rent an apartment nearby. Well, that is the plan.

 

You guys are making me feel much better. Thank you!

[regentrude]

Since books has been mentioned:

I recommend asking the professor before classes start if an older edition of the textbook would be fine, even if a newer edition had been requested. Often there are only cosmetic changes between editions, but the older books are available very inexpensively used. ( I always let my students know which older editions can be substituted.)

[Plucky]

Since books has been mentioned:

I recommend asking the professor before classes start if an older edition of the textbook would be fine, even if a newer edition had been requested. Often there are only cosmetic changes between editions, but the older books are available very inexpensively used. ( I always let my students know which older editions can be substituted.)

 

Yes, we do that, too. It is usually fine. We just have to purchase any online extras like OWL. Saves a ton. :001_smile:

[Pegasus]

It is important to consider how all 4 years are going to be funded so you are wise to be thinking about this now. Too many students have to come home after a year or two because they can not fund the next year of study.

 

Have you considered DS doing the first 2 years at a much less expensive community college and saving the funding that you do have for his last 2 years at the college he wants to attend? That would be MUCH better than getting 2 or 3 years in at his college and then having to quit for lack of funding. Plus, his degree will still have the name of his preferred college on it. Of course, you would need to check if the course credits will transfer, etc.

 

Alternatively, if he takes the non-subsidized stafford loans each year, will that be enough for you and he to fully fund the rest? If not, I would consider his college too expensive and look elsewhere.

 

Finally, I believe that the non-subsidized loans start accruing interest IMMEDIATELY. You just don't start paying it off until after graduation. So, you'll graduate already owing more than you borrowed.

 

Oh, I wanted to add that beyond the non-sub stafford loans already mentioned, any additional loans will need to be either by the PARENTS or co-signed student/parents. Your DS will not be able to get the additional loan funding on his own.

 

Pegasus

Edited March 15, 2012 by Pegasus

[Plucky]

Is this for university of Washington? Here are there scholarships for different disciplines:

 

http://www.washington.edu/students/ugrad/scholar/scholarships/discipline#Business

 

Yeah, none of those are his major. I do know as we get farther into the process we will find out more.:001_smile:

[Brenda in MA]

Finally, I believe that the non-subsidized loans start accruing interest IMMEDIATELY. You just don't start paying it off until after graduation. So, you'll graduate already owing more than you borrowed.

 

 

This is correct, and it's the difference between the subsidized & unsubsidized loans. On the subsidized ones, the government pays the interest while the student is in school. On the unsubsidized ones, the interest accrues while the child is in school, but he doesn't have to pay either principle or interest until 6 mo after he graduates.

 

Brenda