student loans?

[gypsylakat]

Uhmm yeah, so I got into the school of my choice and now I have like a week to look at student loans. My payments are due in full at the end of august (yay?)
I know nothing about student loans and while I have been diligently filling out scholarship essays and have been bugging my parents for the w-2's since april, I need help. I know I'm going to need a loan but I don't know which one to get!

I am going to be at George Mason University, for a music degree for education and will probably be in for about 4-5 years more. I want to live on campus at least some if not all of the years... hopefully this year for part because I don't have my license yet. although I do have a car, hopefully I can get my license next week when we visit my bf's dad becaue he's really good at showing peoples how to drive... level headed if you will.

But yeah, what do I need to know about student loans, I figure a lot of ya'll have been there before and will know the ins and outs of the system..

[*Teach*]

If your not elligible for grants, you'll be getting an unsubsidized stafford loan
Before you can apply for a student loan, you must apply for a grant through http://www.fafsa.ed.gov/ . They will review you and submit the information to your college.
The gov't limits the amounts on loans, for the first year you can get up to 3500 (1750 per semester). Your first semester loan wont actually be in before school. They will not post it until 30 days after the first day of class (due to the number of people who took the money and ran).
You will be applying for the loan at your college finacial aid office (or over the internet with them... but still it's through your school)
You may want to have a lender in mind, but if you don't it really isn't that big of a deal. That's mainly if you want it done by your credit union or something like that.
Once you have applied for you loan, do not assume it's all done and good. Check in with financial aid repeatedly just to make sure it all comes out right. That way you can correct errors quickly and not lose out.

I've been going through all of this with my son, so I know what your dealing with... tons of fun.

For future reference, I would strongly suggest starting this process as soon as you (and your parents) file your income taxes. The sooner your filed, the better off you are in case of errors (and there will always be errors)

If you need more specific questions answered, just let me know and I will try and help. My kid is the third time I have been through the process... and it's never fun.

*Usually I charge rum for this kinda advice...*

[gypsylakat]

that's what I had wanted to do (start it right after getting the taxes done) but I'm not living at home most of time right now (I technically do, but without having a car, the only way I can get to work or to my classes at the community college last semester was to walk... My mom's house is 20 miles outside of town... not happening) I stay at my bf's and I'm a bout a mile from the bus to school or to work.

I had appealed my admissions decision in the middle of MAY they just responded MONDAY saying I got in. and that I had until thursday to put in my 250 deposit and sign up for an orientation on thursday. Lovely.

We can afford my comm. college bills without a whole lot of issue... I just think my mom thought I wasn't going to get into mason...

[Baron Doune]

Go see the financial aid folks today.

Today.

The only way we got Chris through was by student loans and a lot of help from the Comp Sci department head.  And work study tutors.  And Fafsa money.

Just tell them you're broke.

[*Teach*]

You dont actually need the W2s in your hand, you just need the totals... gross wages, adjusted wages and refund so just tell her to read it off the tax form as you put it in lol

Doune is very correct btw... do it today... now... right now... turn off the forum and do the fafsa thing... now

As far as not knowing you were accepted, here is a tip for anyone. When you do your fafsa you can have the info sent to any college. It doesnt matter if your accepted or not, just getting the info to them ahead of time is a big head start and a good "just in case" measure.
I know this doesn't help in your case, just a tip for others.

Student loans and grants is a tediously slow process, the sooner you can get it moving the better.

*kinda like rum making... you gotta get it started soon if you want results later*

[Miranda]

If you are still being claimed as a dependent you might have issues getting enough government subsidized money to cover your expenses.
This happened to me.  My folks made too much money for me to qualify for more than 1500 dollars a semester, but with 3 other kids at home when I was in school they couldn't afford to pay for college out of pocket.  I had to take loans out from private lenders. 


Apply for Fasfa... that lets you see where you stand, and the interest on those loans is lower than private loans.  If you have to go the private loan route, I highly recommend Sallie Mae.  They have been exceedingly accommodating.

[Tremayne]

I agree with Teach and the Baron.

From what I've heard, avoid Fannie Mae at all costs. Yes, they may be very accommodating in providing money (much like mortgage companies that are now in trouble--as is Fannie Mae), but I've heard they're also vicious when it comes to repayment--so much so groups of ex-students have begun to form in protest of their practices. Especially considering your major (which isn't likely to bring you big $$ directly out of college), I'd seek solutions other than private loans (such as working part time or only going to school part time). As has been said, talk to the financial aid folks at your college. If they recommend a loan through fannie mae, view them with a skeptical eye. Schools are businesses and sometimes they just want your money without regard to your future wellbeing. Another possible private loan option: become a member of a credit union and ask what they can do for you.

If you end up having private loans suggested to you, consider (despite the cost) talking to a certified financial planner. Let him/her know what you're calling about and hopefully they'll keep their own cost reasonable and help you choose wisely so you don't find yourself hounded by creditors a few months after graduation.

And kudos to you for asking for assistance/advice

[gypsylakat]

how are credit Unions better? I am a member of the one for our county (my dad is a county employee although I joined under the fact that I am a student)

[Tremayne]

Credit unions almost always offer better loan rates and usually refrain from tacking on unnecessary origination fees. Call and talk to a loan officer there. Ask if they offer any sort of special student loan rates/terms. Ask them if there would be a difference in the interest rate between you taking out a loan yourself or having your parents cosign (will depend on their credit rating--but if it's good then it could get you a better rate on the loan since I assume your credit history is limited). If nothing else, this questioning will give you a benchmark in terms of what sorts of interest rates to accept from other lenders. Be sure to ask those other lenders about origination fees, which they often don't state as the interest rate but effectively can increase the interest rate.

Be sure to exhaust your stafford and fafsa options first. A direct loan through the gov't is really the best in terms of repayment flexibility and grace periods.

As you probably gleaned from my comment above or may know thru other means, you want to maintain a good credit rating. One of the dastardly aspects of private lenders not being flexible with repayment of student loans is that it can result in a poor credit rating for someone just starting out, which means thereafter lenders will only lend to you at higher rates (until you manage to improve your rating), which doesn't make ones financial picture any brighter.

[Lady Neysa]

This happened to me.  My folks made too much money for me to qualify for more than 1500 dollars a semester, but with 3 other kids at home when I was in school they couldn't afford to pay for college out of pocket. 

Yeah, I know what you mean there.  We've been through that numerous times with our oldest daughter. She's 23 and still struggling to finish her degree because she's had to do it part time,paying as she goes, in order to afford it, and that was just community college. I don't know what she's gonna do now that she got accepted into a good business college.  I don't know what planet the fafsa people live on that they think "oh you make so and so amount of $ -you're "too well off" to get grants."  Geez, if we're well off, then I'm missing something, 'cause most of the time we barely make ends meet, living quite frugally. Not a day goes by that I'm not stressed and worried about money.
Even if you're not being claimed as a dependent, if you still live with you're parents they will go by their income. 
I keep stessing to our younger kids, 13 and 11, to PLEASE get the best grades they can so they'll hopefully qualify for scholarships.

[Tremayne]

I've known young people who have moved out of their parents home (usually with two or 3 others their age in order to make ends meet) so they wouldn't have to take their parents' income into account. That was years ago--don't know how long it takes before the gov't will consider you independent these days.

Not sure how many of you know this--perhaps old news to all though I just found out about it a few years ago--there's something called a 529 plan (at least I think that's the number) that's like an IRA for your kids education. Again, best to talk to a financial planner or do some net research to find out more about them. Might be worthwhile for your younger kids, Lady Neysa.

[gypsylakat]

yeah i wanted my parents to do a savings plan for my education a long time ago... didn't happen as you might'a guessed...

Just submitted my fafsa, my grandmother brought in the paperwork that my mother kept "forgetting" estimated family contribution is probably accurate for what we can afford for the year... mostly, a little higher... but still.

[raevyncait]

Something else to remember is that while they are saying "Don't worry, when it comes time to repay, you'll only have to pay $100/month."  What they aren't telling you is that it's $100/month for EACH loan, and each year is a NEW LOAN, so if you are in for 4 years and get the maximum, at $100/month to repay, you'll be repaying $400/month.  Many students get quite the shock when they get that first bill.

[Random Girl]

I've known young people who have moved out of their parents home (usually with two or 3 others their age in order to make ends meet) so they wouldn't have to take their parents' income into account. That was years ago--don't know how long it takes before the gov't will consider you independent these days.

Not sure how many of you know this--perhaps old news to all though I just found out about it a few years ago--there's something called a 529 plan (at least I think that's the number) that's like an IRA for your kids education. Again, best to talk to a financial planner or do some net research to find out more about them. Might be worthwhile for your younger kids, Lady Neysa.

Actually if you are under the age of 24 they will consider your parents income despite where you live.  You can file for independant status under extenuating circumstances but usually they don't grant it.  When I first went to school I was on my own and made about 12k a year and they counted my parents income which really was to my advantage since my father is deceased and my mother doesn't work.  So I got BUTTLOADS of grants.  This time I am going to school I have a daughter so even though I am under 24 since I have a dependant that makes me an independant student and I STILL get buttloads of grants.

I so far have never paid for school.  Although I too am getting a loan because I need a new computer...for school...really...

[Lady Neysa]

Actually if you are under the age of 24 they will consider your parents income despite where you live.  You can file for independant status under extenuating circumstances but usually they don't grant it. [/quote]

Oh yeah, I forgot to mention this aspect.  I've never understood why they do that.  Sometimes, like in your case it was to your advantage, but it seems to me it's only gonna hinder my daughter from getting money she should get until she's 24.  Again, why do they do this? I mean, she'll be living on her own, supporting herself-why do they still have to use our income if she's not a dependent and we're not supporting her?  She's either a legal adult or she isn't, they need to make up their minds.