College Scholarships ? Debt Dumping? 5 year plan, oh my!

[kymom99]

There is a difference between loans/grants and scholarships. I believe my college kid# received a $5000 grant that they will need to pay back, but Dd gets $18,000 a year in merit as long as she maintains a certain GPA. DD’s best friend‘s roommate just left this semester because her parents could not afford tuition.

The difference between a grant and a scholarship is simply the source of the money. Grants by definition are not paid back, and are awarded by the federal government based on need. I received some grants for college because my dad was retired. My son does not qualify for grants. Money that is paid back is a loan. Some are subsidized by the government, again based on need, while some are unsubsidized.

 

[tvguy]

There is a difference between loans/grants and scholarships. I believe my college kid# received a $5000 grant that they will need to pay back, but Dd gets $18,000 a year in merit as long as she maintains a certain GPA. DD’s best friend‘s roommate just left this semester because her parents could not afford tuition.

I believe there is a difference. My point is, the Universities don't see a difference. Financial aid in their book, is everything, loans, grants, scholarships, fellowships, work study.

 

[TwoMisfits]

Hi ya'll- we are currently helping our DD19 pay her college expenses, but it is killing us. Initially she was to take loans out if she wanted this school but then we needed to co-sign. Not wanting to risk that, we agreed to just help pay month to month. Again- its klling us. Its a lot.

I told her she needs to really buckle down and start applying for scholarships, which she has. Im hopeful that maybe some of you savvy debt dumpers have ideas on where to apply as well.

I know she should have gone to CC, but she got a pretty hefty amount for the school she chose (state school too) and is doing incredibly well (deans list!) so we would like for her to continue where shes at, if she can.

The greater plan is for DH and I to be out of PA within the next 5 years... so we have a lot of debt to start dumping, and its all feeling overwhelming! Any great(and trustworthy) sites to help with scholarships y'all may have had luck with, would be appreciAted, as well as debt dumping advice. Thanks!

Is it in the neighborhood of $15K, $25K, or $35K per year - state schools plus the need for room and board (or not), could give us an idea of the doable...

 

[wishuponastar1984]

that's when they find out that 'yes' their units are transferable, 'yes' they've completed their general ed requirements at both universities BUT-the major at each university has slightly different prerequisites so the math classes they took weren't the ones that meet the prereq's, the english don't meet the prereq's-and all the electives? those were basically wasted b/c they should have been carefully selected to meet the wealth of other prereq's for the department they wanted to major in.

This just seems like poor planning. When attending CC with the anticipation to switch to a traditional 4 year university then they should have carefully reviewed what and how the credits transfer. This isn't rocket science. I have also seen some students take a core class at a community college over the summer, especially if it is an area they aren't strong at, like a math class that may prove more challenging at the traditional 4 year.

 

[barkley]

This just seems like poor planning. When attending CC with the anticipation to switch to a traditional 4 year university then they should have carefully reviewed what and how the credits transfer. This isn't rocket science. I have also seen some students take a core class at a community college over the summer, especially if it is an area they aren't strong at, like a math class that may prove more challenging at the traditional 4 year.

i think part of the problem is the high number of students who have no clue what they want to major in but they feel it's their only option/their parents push and it's off to college they go. with no idea in mind they are told not to worry, to focus on getting their general ed done, their career will reveal itself over the next couple of years...then they make a decision (or default to one) and find they should have made some decisions when they were starting out.


i loved summer classes at community college-they were less crowded than the ones during the year at my university (class of 15-20 vs 300) so even after i transferred i still took some (it also cut down on how long university took). the added advantage for the geographical area i lived in-the same professors that taught at the highly competitive for admissions/much more expensive uc colleges often took these summer teaching gigs for extra pay so while i didn't pay uc davis or uc berkley tuition/fees at my state university i still had the same profs!

 

[inkedupmomma]

Is it in the neighborhood of $15K, $25K, or $35K per year - state schools plus the need for room and board (or not), could give us an idea of the doable...

good question- this year was near 16K that we paid for over the past 10 months. Next year she will be in an apartment to herself which is significantly cheaper.

 

[inkedupmomma]

Thanks for all of the great information everyone! Really appreciate and going to read through carefully!

 

[inkedupmomma]

What is your DD doing towards earning money for her expenses? Has she applied for any Stafford Loans? Stafford loans are taken out by the student and don't need a co-signer. I think it is BS where people are saying their child's job is going to school and they shouldn't be working. Sorry, plenty of students work and go to school full time. Having skin (their own money) in the game have the impact of them generally making better decisions about how and where they spend money. I also would not put myself in debt or risk my own future to put a kid through school.

Quite a bit actually As you can see, I was not one to say her only job is going to school.

 

[TwoMisfits]

good question- this year was near 16K that we paid for over the past 10 months. Next year she will be in an apartment to herself which is significantly cheaper.

Okay, so it's $1600/month (since you only have a 10 month window). That is a lot to pull out of a budget without a little loan float (or a savings spot to pull from) or a large tax refund.

So, there's about $48-$50K left to get her through the last 3 years.

I understand not wanting to take out loans, although I do second the poster who mentioned considering having your daughter take out the kid specific ones that don't require a co-sign from you. There's nothing wrong with letting her have them, and then paying them off as her graduation present (but since they are in "her" name, you're never technically on the hook). If it gives you the float in your budget you need...and you don't have kids coming after who would make the budget even worse with their expenses, it's worth thinking about.

And I'd also 2nd the poster who mentioned looking into RA positions...I know you said she's in an apartment next year, and it's cheaper...but in year 3/4, if she gets an RA post, many places will give room (and possibly board) free...and that would be a huge savings.

And I'd finally 2nd the poster who mentioned looking for college work positions, both in and out of school. One thing that could pay well, but not take a ton of time, is tutoring/teaching homeschooled high schoolers, particularly in high level Maths or Sciences (if your child is gifted in those areas). Another area to consider (while possibly not as fun) would be in-home child care, b/c college students with a license are always in huge demand and can command $20-$25/hour in some places. So, again, she could create a college schedule that makes either of these options doable without putting a huge demand on her time.

 

[crisi]

sadly that's not the case so much these days. we see on the news the extent parents will go to get their kids into college. even if it's not one of the top tier/highly competitive ones the colleges know that these days both kids and their parents are willing to drown in debt for decades so it's not uncommon for a student's financial aid/scholarship packages to decrease with each year in college. we've seen colleges who bank on making it quasi affordable for the first 2 years b/c it's next to impossible to get another 4 year college to let you do a transfer in for your jr. year b/c they all have slight differences in the general ed/major prerequisites so they know few if any students will jump ship when faced with doing a 5th or possibly 6th year to finish their degrees. in our neck of the woods a community college student whose done their first 2 years will have more general ed transferable/accepted at a state college vs. a student who went 2 years to one state college but wants/needs to finish up at another.

ds recently got his financial aid award letter. i saw an item on it but couldn't figure out what it was until i googled the terminology. it was a loan.........a horrible loan at a terrible rate with terrible fees. to look at ds's award letter one would think he had been offered a full ride-reality is college/lenders have decided to rename some loan products so they don't have the negative connotation.

It is also the case that colleges are broke. Most can't afford needs blind admission. The generation of alumni who gave generously is retired and dying off, and the generation that is in its peak earnings years doesn't go in for alumni donations like their predecessors. In the next 20 years a significant number of private colleges are expected to go under. https://www.usnews.com/news/educati...-signal-start-of-a-crisis-in-higher-education

 

[TwoMisfits]

It is also the case that colleges are broke. Most can't afford needs blind admission. The generation of alumni who gave generously is retired and dying off, and the generation that is in its peak earnings years doesn't go in for alumni donations like their predecessors. In the next 20 years a significant number of private colleges are expected to go under. https://www.usnews.com/news/educati...-signal-start-of-a-crisis-in-higher-education

To be fair to current alumni, the coming college financial crisis is probably a case study of how everything that could go wrong did go wrong...and every decision made by those in charge was probably not the right one to make.

It's gonna be a multi-cause failure, from "bust" populations aging into college to technological change to sky-rocketing marketed prices to politicization to skyrocketing fixed costs trying to "keep up with the Joneses" campuses to ease of alumni seeing where donations go and keeping wallets closed to bloated administrations to lower return on college investment to salary ratios, etc...

 

[kymom99]

To be fair to current alumni, the coming college financial crisis is probably a case study of how everything that could go wrong did go wrong...and every decision made by those in charge was probably not the right one to make.

It's gonna be a multi-cause failure, from "bust" populations aging into college to technological change to sky-rocketing marketed prices to politicization to skyrocketing fixed costs trying to "keep up with the Joneses" campuses to ease of alumni seeing where donations go and keeping wallets closed to bloated administrations to lower return on college investment to salary ratios, etc...

In my state they cut funding to universities in order to fund k-12. It has been a mess. Hopefully the new governor’s budget will pass

 

[barkley]

I understand not wanting to take out loans, although I do second the poster who mentioned considering having your daughter take out the kid specific ones that don't require a co-sign from you. There's nothing wrong with letting her have them, and then paying them off as her graduation present (but since they are in "her" name, you're never technically on the hook). If it gives you the float in your budget you need...and you don't have kids coming after who would make the budget even worse with their expenses, it's worth thinking about.

we advised dd to do this with the government backed loans that didn't accrue interest during attendance because the monies we hoped to contribute could be earning interest over the time she was in college/initial non interest accruing 6 months post graduation. she also had some savings bonds she could have cashed in but they were earning interest so we had her let them sit as well.

 

[crisi]

To be fair to current alumni, the coming college financial crisis is probably a case study of how everything that could go wrong did go wrong...and every decision made by those in charge was probably not the right one to make.

It's gonna be a multi-cause failure, from "bust" populations aging into college to technological change to sky-rocketing marketed prices to politicization to skyrocketing fixed costs trying to "keep up with the Joneses" campuses to ease of alumni seeing where donations go and keeping wallets closed to bloated administrations to lower return on college investment to salary ratios, etc...

Yep. All of this. Although what one person sees as "bloated" another finds necessary....I'm glad that the bloated administration includes therapists and student accessibility services - barely available when I went to school and a growing need on a college campus. And year abroad counselors - that's a great opportunity and it requires guidance to pick the right program for a student. I'm glad the campus has an up to date Science center that includes up to date equipment - very expensive - my kid isn't majoring in a STEM field, but many are.

 

[crisi]

we advised dd to do this with the government backed loans that didn't accrue interest during attendance because the monies we hoped to contribute could be earning interest over the time she was in college/initial non interest accruing 6 months post graduation. she also had some savings bonds she could have cashed in but they were earning interest so we had her let them sit as well.

Not everyone qualifies for those - but on the other hand - if you don't qualify for those, you probably should have been able to save for college unless your high income is very recent. (We always said that the student aid office was going to laugh at us - and indeed, we got no need based aid - she did get a $20k a year merit scholarship from the school she chose.)

 

[mom2rose&john]

Does she live on campus? If so, she can be an RA at a dorm. It will give her free room and board and a single room. She can still have work study (if she qualifies) that she can use as income or towards her tuition. It is not a 24/7 job. They rotate the hours so she is not on call all the time. It is a commitment but it alleviates upwards of $10,000 per year.

 

[mjkacmom]

good question- this year was near 16K that we paid for over the past 10 months. Next year she will be in an apartment to herself which is significantly cheaper.

$16,000 a year including room and board? Even with a top scholarship DD’s bill is over $30,000 (OOS). She will save some money next year renting an apartment with 5 friends and not getting a meal plan (which is about $6000).

 

[tvguy]

$16,000 a year including room and board? Even with a top scholarship DD’s bill is over $30,000 (OOS). She will save some money next year renting an apartment with 5 friends and not getting a meal plan (which is about $6000).

Not sure we saved anything when DS moved into an apartment off campus. But his University requires students to live on campus their first two years, so they are very aggressive in their pricing. I really think living off campus had a negative impact on his grades too.

 

[kymom99]

$16,000 a year including room and board? Even with a top scholarship DD’s bill is over $30,000 (OOS). She will save some money next year renting an apartment with 5 friends and not getting a meal plan (which is about $6000).

That’s probably after taking off scholarship money. I/we pay about $11000 a year after scholarships. That includes housing and a meal plan. We priced an apartmt but when you factor in paying year round, paying for internet and laundry, and having to drive to campus in all kinds of weather, it wasn’t really any cheaper.

Obviously prices vary greatly by state.

 

[mjkacmom]

That’s probably after taking off scholarship money. I/we pay about $11000 a year after scholarships. That includes housing and a meal plan. We priced an apartmt but when you factor in paying year round, paying for internet and laundry, and having to drive to campus in all kinds of weather, it wasn’t really any cheaper.

Obviously prices vary greatly by state.

We are paying $30,000+ after the $18,000 yearly scholarship. Room and board is $13,000, so even paying $700 a month for rent year round, I think it will still be cheaper (she barely uses her dining plan and spends about $100 a month on groceries for her dorm room. She’s in a forced triple and it’s the hang out room, I think having her own bedroom will be beneficial (plus she is super type A especially with grades (as are all of her friends, all in the honors program). She can walk/bike to campus (and now her laundry will be free).