Student Loan Questions

[Buckeye]

I am a freshmen at a private college, came to play football but my income changed and it caused me to lose my CAP and Pell Grants. Now I am lacking help to pay for school and am looking into private student loans. I already have my Federal Stafford Loan. I am transferring to a public university next semester for what its worth. I will be a Special Education Major, and was wondering for any help on where I should take it out at, or just any help on student loans at all. I have yet to take any out, but I need another way to pay for my education.

Also, I know some defer them until 6 months after graduation, but can you still pay on them while you are in school? How much does it help in the end?

Thanks.

[Redacted01]

Re: Student Loan Questions

You can pay as you go. Federal gov't always offered me more than I ever needed on federal loans so can't help on that part.

[FlyingFinn]

Re: Student Loan Questions

My loans were through Sallie Mae and I never had a problem with them. When I was unemployed I could defer payment etc... My interest rate was low and still dropped after 2 years of on time payments.

[ehh]

Re: Student Loan Questions

I'd be VERY, VERY careful with private loans. My parents signed me up for private loans over a decade ago, even before student loan debt really went crazy, and it was a horrible decision that's had a huge impact on my life. This was when the "go to college no matter the costs" was the prevalent philosophy and going to a small, private and insanely overpriced Libert Arts college in New England was considered prestigious or a step above state schools.

I'll probably be paying $800/mo in student loans into my late 40's/early 50's. I hope that my 50th birthday present to myself is that I'll finally be able to start saving for retirement.

At least you made the first smart move and left the overpriced private school for a state school. I'd say pay-as-you-go as much as possible and try to get a full time job while being a full-time student. You'll thank yourself in the long run.

[ASB37]

Re: Student Loan Questions

As someone in Law School who has to deal with the prospect of graduating with student loan debt, my biggest piece of advice is to not take out more money than you need.

I see so many of my friends take out "Cost Of Attendance" loans as the max allowable under the plan and use it as "free spending money," when they will end up paying triple what the loan amount was.

Reduce the amount of loans you take out as much as you can, and pay the interest on the loans down while you're in school during the deferment stage.

[RockinDaMike]

Re: Student Loan Questions

I'd be VERY, VERY careful with private loans. My parents signed me up for private loans over a decade ago, even before student loan debt really went crazy, and it was a horrible decision that's had a huge impact on my life. This was when the "go to college no matter the costs" was the prevalent philosophy and going to a small, private and insanely overpriced Libert Arts college in New England was considered prestigious or a step above state schools.

I'll probably be paying $800/mo in student loans into my late 40's/early 50's. I hope that my 50th birthday present to myself is that I'll finally be able to start saving for retirement.

At least you made the first smart move and left the overpriced private school for a state school. I'd say pay-as-you-go as much as possible and try to get a full time job while being a full-time student. You'll thank yourself in the long run.

This is the reason I quit college. I was getting good grades but it didn't make business sense for me to keep going. It took awhile to find what I was really passionate in but I'm glad I never borrowed money to do anything other than buy a home. And doing that I was still debt free because I was renting out rooms that payed my mortgage, bills and still made a little profit. I made close to and over 6 figures in my job for the last 7 years by honing in on sales and customer service skills and most of it is in savings and other investments/stocks.

I'm 31, sold my house, quit my job and now i'm in the Philippines going to start a simple hotel for backpackers and retreat people with my own money. This year and next year I'm traveling the world and i'm still on a budget staying in hostels and cheap rooms lol. and guess what, most of what I'm doing is a tax right off.

This might not be the advice you are looking for but its something you should consider before putting yourself in a hole where you spend a good portion of your life owing money back. I met so many people who went to college and don't use there degree at all and spend so much time working to pay back loans.

So like other said, if you can get a job to pay your classes, thats the way to do it. You also want to make sure if college is truly for you and what you want to do and not have society pressure to do it because its the thing you're suppose to do. I've seen how much college cost now and its ridiculously higher than it was for me.

There's a lot of business owners i've met that were college drop outs or never went to college but found something they loved, and mastered it. They either teach the skill or start a business. Yes, business is not for everyone but the smartest people I know are the ones that aren't in debt and live simply and are happy with what there job gives them.

America is a free country but are full of traps that handcuff you be it financially or health so stay awake and you can live that fruitful life that original settlers dreamed of.

[Jr.]

Re: Student Loan Questions

Buckeye,

If your parents claim you as a dependent, they can file for FAFSA for you.. that might allow to you be eligible for the Pell Grant again in the future. Or if they already are filing for you, you can file for yourself.. whichever makes you more likely to be eligible for the Pell Grant.

Like someone else mentioned, you can pay on loans anytime.. even now if you are able to.

[Redacted01]

Re: Student Loan Questions

Buckeye,

If your parents claim you as a dependent, they can file for FAFSA for you.. that might allow to you be eligible for the Pell Grant again in the future. Or if they already are filing for you, you can file for yourself.. whichever makes you more likely to be eligible for the Pell Grant.

Like someone else mentioned, you can pay on loans anytime.. even now if you are able to.

Or it would just royally **** you over because his parents make more money than he does. When my parents did my FAFSA, my fair share was always pushing $40,000... which made no sense because they spent much of the money they made so there was no way we could afford it. Luckily I had scholarships, but I still had to take out a chunk of loans here and there. Once I got my own place and was no longer a dependent, my fair share went down to pennies compared to that and I was eligible for more stuff.

[FlyingFinn]

Re: Student Loan Questions

I ended up graduating with $24K in loans. I only worked during the summer in college. I don't really use what I got my degree in (Physics) but I wouldn't trade my college experience for anything. Good times is a severe understatement.

[Jr.]

Re: Student Loan Questions

Or it would just royally **** you over because his parents make more money than he does. When my parents did my FAFSA, my fair share was always pushing $40,000... which made no sense because they spent much of the money they made so there was no way we could afford it. Luckily I had scholarships, but I still had to take out a chunk of loans here and there. Once I got my own place and was no longer a dependent, my fair share went down to pennies compared to that and I was eligible for more stuff.

That's why I said either/or. Students usually want to fill out the FAFSA under their own name, but in some cases, a student could be more likely to be eligible for the Pell if their parents file. Just providing extra options, relax.

[Redacted01]

Re: Student Loan Questions

That's why I said either/or. Students usually want to fill out the FAFSA under their own name, but in some cases, a student could be more likely to be eligible for the Pell if their parents file. Just providing extra options, relax.

But you're one and done. You can't do it one way and then decide "Oops, that didn't help me" and refile. Unless your parents are dirt poor or are putting the Brady Bunch through college, with the way it is now, you're better off going on your own. They used to hand those out like candy, but not so much now.

[Jr.]

Re: Student Loan Questions

But you're one and done. You can't do it one way and then decide "Oops, that didn't help me" and refile. Unless your parents are dirt poor or are putting the Brady Bunch through college, with the way it is now, you're better off going on your own. They used to hand those out like candy, but not so much now.

Unless they've changed it, parents and students used to be able to file each year. I was specifically told in high school to file myself and have my parents do it to see which reward was bigger. Just because you file, you don't have to accept the money. If they've changed that though, I apologize.

[Redacted01]

Re: Student Loan Questions

You can only file a single FAFSA. Whether you must include parental information depends on if you are a dependent or not. You cannot file one with and one without and pick the one that is better for you. That wasn't an option at all when I did mine and that was several years ago now. You could go and update some of your tax information later if you estimated it, but you couldn't do one of each and wait and see, unless there was a trick or loophole you could do with the estimations to find out.

[GAMEC0CK2002]

Re: Student Loan Questions

If you become a special education teacher (science or math also count....i was science) and teach in an underserved (rural or urban) area for 5 consecutive years you can have up to $17,500 of your student loans forgiven.

Over this summer I had almost $13K forgiven (kinda wish I had paid them less monthly over the last 7-8 years).

Teacher Loan Forgiveness
The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans. If you have PLUS loans only, you are not eligible for this type of forgiveness.

Taken from: https://studentaid.ed.gov/repay-loan...charts/teacher

[Buckeye]

Re: Student Loan Questions

Thanks for all the opinions guys.. and my FAFSA was filled as a dependent to my parents