Student Loans, Grants, ETC HELP!

[LoveChaCha]

I will be going back to school for a year in January.. but I am unable to pay for my school. I have already done the FAFSA (free money from the government for school) and I am not sure of how much I will be getting for school  I will be getting a letter in December, but my school may not be 100% covered by fafsa. 

My dad can’t pay for my college.. it would be impossible. And I am possibly near receiving partial unemployment benefits. If I tell my school I qualified for unemployment, they will help me out with my first quarter at school.

According to my school’s financial aid office, my school does not take “Low Interest Federal Student Loans.” WTF  My choices leave me with: (other) Federal, State, or Institutional Grants, scholarships or work study

 

Any sites or advice recommended to me?  I hate this.. NOBODY tells you what to do when you apply for college! The financial aid lady at my school is a total grumpy lady and isn’t helpful.

[Lagomorpheus]

If you don’t come from a wealthy family or develop fantastic connections in college, taking out huge amounts of student loans may ruin your life as they are ruining mine. Have you considered working your way through college? It may take longer, but you will be far ahead in the long run. If you can’t afford that, you may be going to a school that is too expensive for your means. Alternatively, you may want to work full time now and save up to attend college in a few years. Either way, take heed from someone who has been there: Never take out a loan with nothing but hope as your means to pay it off and your future as collateral. Because in this economy you are likely to lose both and end up with a worthless piece of paper (diploma) and an entry level job anyways.

 

[edit] just to clarify – I wish someone had told me the following before I went $150,000 in debt:

1. the difference in quality of education between colleges is negligible (except maybe ivy league schools)
2. the difference in quality of education and prestige is not worth going into massive debt over
3. a degree in a hard science like engineering makes it much easier for you to get a well-paying job in your field to pay off a big loan. If you’re getting a degree in something useless like political science, philosophy, history, sociology, etc. you have no business getting big loans unless you have great connections to land rare jobs after graduating.
4. Plan for what happens to 90% of us graduating in the worst economy since the great depression: unemployment and entry level jobs. Ask yourself if you can pay back the interest on that loan under these conditions. Unless it is a small loan, the answer is probably not. The consequences are surreal amounts of interest and finance charges stacking up until the deferrals run out, you default, and then get dragged to court. Then your assets are seized, your pitiful entry level wages are garnished for 25% every paycheck, and your credit rating plummets.

[LoveChaCha]

The thing is, my school is just a year and my certificate won’t go to waste. The Medical Assisting field is very much in demand and is a thriving field to be in.

I mentioned that I virtually can’t work full time – my job has cut my hours under extremely stupid circumstances and I am seeking partial unemployment. Waiting really is not an option for me, as I am 23 and I do not want to suffer anymore and let my dad pay all the bills himself The sad thing about it, is that students aren’t taught how to do the financial aid process of college.

If I do seek a loan, it will only be for at least 10 grand. People that do externships in the medical field, some tend to get hired via their externships. medical assistants pay tend to be 15-20 dollars per hour. My boyfriend who is going to a private school and his tuition is an ASTRONOMICAL 33,000 per year has some student loans to pay off after he is done.

[bunnytowne]

Wow Lago thats rough.

Gee I didnt’ realize it was that tough with those loans.

Yes the medical field is hopping.  Seems it will always be in demand

[MayaConsuelo]

I used to work in the financial aid department of a college but it’s been 10 years and my brain is rusty. However I’ve gone to grad school since then and racked up 80 thou in loans. I’m not sure what Medical Assisting entails, is that like being a surgical assistant? One thing I would make sure of is that the school is accredited and that you can get hired by hospitals/clinics after graduation, because a lot of for-profit colleges and online colleges are kind of scamming the system right now (i.e. credit for classes won’t transfer to other schools and programs, etc.) If the school is accredited you should be able to get FAFSA loans no problem. Dependency status changes at age 23 meaning you can borrow more money (or the age used to be 23, may be different now.)

One thing almost nobody knows about is the Income-Based Repayment plan – http://www.ibrinfo.org/
After graduation, if your income is below a certain level, fill out the paperwork and you pay a fraction of your student loans… then if they’re not repaid after 25 years they’re dismissed. It’s not a scam, I know several financial-types who have looked into it. It’s not based purely on income, it’s also based on living expenses… so not all hope is lost. Not to say that we should just take out tens of thousands of loans and plan on not repaying… BUT there really is no other option in our country, unfortunately.

For my undergrad I got a free ride with scholarships, for piano performance… then after graduation developed crippling stage fright, anxiety, and burnout… ugh good use of all that free tuition

[Michelle&Lolli]

The Federal Stafford loan is the govenmnet backed loan and is the only loan you should really apply for.  Here’s information:

http://www.staffordloan.com/

If your school doesn’t accept them, I’d rethink the school.  Especially if they steer you towards certain loans.  Cause they are probably getting a kick back from the financial institution and are not looking at the best interest of their students. 

The stafford loan has the best repayment options out there.   You can get deferments and forebearances for several different reasons.  Like Maya was saying, they are the only ones who has the income contigent repayment plan where they base your payment on your income.  If you simply cannot make your payment for a certain period, it is very easy to get a general forebearance and have your payments put on hold during that period.  However, interest still acrues on your loan.   Also, the interest is usually lower. 

DO NOT get a private loan unless you have absolutely have to.  I did and am now regretting it.  Because they were created as an alternative to the federal loans, banks are not required to give any type of deferments on the payments.  Plus the interests rates can be higher.  This is due to the banks wanting to make a profit.   

This may sound dorky, but I’d go to your local library and tell them you are looking for information on student loans.  They will be able to guide to resources and may even be able to answer questions.  I tried to do a google search but didn’t find any good sites for education loans. 

This site may help you some:

http://www.studentloans.com/

I don’t particularly agree with other person’s view on student loans, etc.  Very few people graduate college with well paying jobs.  Most graduates do have to start at entry level.  That is the way this country works.  And a diploma isn’t useless as it’s been proven that just having one earns a person more money over a lifetime than not having one.  It’s just really unfortunate that the economy is what it is right now.  I messed up my college years and ended up not graduating.  I have lots of student loans and nothing to show for it.  I’d give anything to be able to go back and change things.  I am 31 years old and am barely making enough to support myself.  Nobody’s fault but mine and I do realize that millions of Americans are in the same boat.  But I can’t help but thinking that I’d have a bit better paying job if I had a degree. 

[Lagomorpheus]

better paying in the long run? maybe. over a lifetime? sure. But starting out is plenty of time for the loans to default and rack up tens of thousands of dollars in interest and finance charges, ruin your credit, and do other damage as well. Private student loans are not worth it!!

[LoveChaCha]

My friend recommended me to that site, bunbuns She is around my age and has paid off her loans.

I’m going to talk to my financial aid advisor about the stafford loan. I tried getting one from the site, but it said I have to talk to my advisor about getting one.

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