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Old 07-05-2021, 02:43 PM   #1
geauxgruene
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Have on in college and another one starts next month. School me on the best company for the parents portion of college student loans. Any of them low or no interest? The feds say we don't qualify for their loan.

Had what I thought was an "interest deferred" loan through Discover but turns out it accumulated almost $5000 in interest last year. Appreciate any leads.
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Old 07-05-2021, 03:06 PM   #2
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the government mandated shutdown should have suspended last years interest on your student loans.
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Old 07-05-2021, 04:00 PM   #3
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Ask the school for scholarship applications and grants. IF your kids have outstanding grades they may qualify for the Presidents scholarships, which is some pretty substantial money.

Also, keep in mind, Brazos County Archery Club offers a $500 scholarship every spring, which just closed on June 30. We only had 2 applicants so we are going to decide to expand it to $1,000 for the 2 applicants or hold the funds for next year. It is disappointing to us and many other scholarship offering groups to have so few applicants.

If you for sure are going to get a loan, ask the financial aid office for a link to a searchable database of providers. Years ago, schools had preferred lenders but the federal requirements for those is very extensive so most schools moved away from that and now cannot even recommend a lender. (How's that for loan competition with the federal government - since they took over loans and started offering direct loans, they essentially banned schools from recommending lenders.)

Virtually no private lenders offer deferred interest loans so be wary of any that say they do.
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Old 07-05-2021, 04:01 PM   #4
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Where are they going to school at?
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Old 07-05-2021, 05:51 PM   #5
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Wish you the best of luck, but I don't know of any interest free or low interest student loans. But I also thought the Feds took over all the student loan business.

I feel your pain as we have two in college now. Not to wish the hunting season away but the oldest get's out in December.

Thankfully our parents, their grandparents, are helping. So each should get out debt free.
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Old 07-05-2021, 08:31 PM   #6
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Always read the fine print. College 101..

Honestly no help. Hope you get things worked out, that's a bad deal.

Last edited by eradicator; 07-05-2021 at 08:38 PM.
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Old 07-05-2021, 08:40 PM   #7
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Can you not have your kid get the student loan in their own name, since they donít have much income, and just pay it for them later?
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Old 07-05-2021, 09:13 PM   #8
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Quote:
Originally Posted by geauxgruene View Post
Have on in college and another one starts next month. School me on the best company for the parents portion of college student loans. Any of them low or no interest? The feds say we don't qualify for their loan.



Had what I thought was an "interest deferred" loan through Discover but turns out it accumulated almost $5000 in interest last year. Appreciate any leads.
Feel free to pm me. I am an financial aid administrator.

1. Everyone qualifies for federal loans.
2. You might not qualify for Pell grant or Stafford Subsidized, but the student would then be eligible for Unsubsidized loans at the depdendent level.
3. If you should be able to apply for a Federal Plus loan. If approved, you can then use it or decline it. Student is still eligible for dependent level loan limits.
4. If you are declined, then the student is eligible for 'independent' level loan limits for that award year.

Read more about the parent loan here:
https://studentaid.gov/plus-app/parent/landing


You can defer payment while the student is in school, but interest is accrued. However, nothing to say to cant be making payment while in school.




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Old 07-05-2021, 09:19 PM   #9
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Can you not have your kid get the student loan in their own name, since they donít have much income, and just pay it for them later?
Yes and no..but mostly no. Schools will have your start with the Free Application for Student Aid or FAFSA.

This determines dependency. If the student is determined to be dependent.. parents will need to be involved. Their information will go onto the FAFSA and will then determine EFC(expected family contribution)

EFC determines eligibility for Federal Grants and then which Subsidized program loans the student can use (Subsidized & Unsubsidized or just Unsubsidized)

First year dependent students are eligible for 5500, 3500 Subsidized and 2000 Unsubsidized.

Matt

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Old 07-06-2021, 04:45 PM   #10
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[QUOTE=r_u_sharp_2;15689243]Feel free to pm me. I am an financial aid administrator.

1. Everyone qualifies for federal loans.
2. You might not qualify for Pell grant or Stafford Subsidized, but the student would then be eligible for Unsubsidized loans at the depdendent level.
3. If you should be able to apply for a Federal Plus loan. If approved, you can then use it or decline it. Student is still eligible for dependent level loan limits.
4. If you are declined, then the student is eligible for 'independent' level loan limits for that award year.

Read more about the parent loan here:
https://studentaid.gov/plus-app/parent/landing


You can defer payment while the student is in school, but interest is accrued. However, nothing to say to cant be making payment while in school.
---------------------------------------

Thanks Matt! Appreciate the lead. Good to know there may be another route...
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Old 07-07-2021, 05:56 AM   #11
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Originally Posted by r_u_sharp_2 View Post
Yes and no..but mostly no. Schools will have your start with the Free Application for Student Aid or FAFSA.

This determines dependency. If the student is determined to be dependent.. parents will need to be involved. Their information will go onto the FAFSA and will then determine EFC(expected family contribution)

EFC determines eligibility for Federal Grants and then which Subsidized program loans the student can use (Subsidized & Unsubsidized or just Unsubsidized)

First year dependent students are eligible for 5500, 3500 Subsidized and 2000 Unsubsidized.

Matt

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Got ya. We just started applying for colleges for my son this week so we are in the process. We have a FASFA login but canít start that until October.

It all looks like grand fun
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Old 07-07-2021, 10:46 AM   #12
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We were able to take advantage of these interest free loans for my son who just graduated in May from TAMU with his Masters of Science in Athletic Training.

https://comptroller.texas.gov/progra...hip/scaasf.php
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Old 07-07-2021, 10:50 AM   #13
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College planning starts when they are in Kindergarten, or before, using state college plans.
Never do student loans, plenty of scholarships out there to be had.
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Old 07-07-2021, 01:40 PM   #14
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Originally Posted by FIRE59 View Post
We were able to take advantage of these interest free loans for my son who just graduated in May from TAMU with his Masters of Science in Athletic Training.

https://comptroller.texas.gov/progra...hip/scaasf.php

Awesome. Thanks
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Old 07-07-2021, 02:03 PM   #15
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One of the best things you can do to qualify for federal programs is sit down with the financial aid administrator / counselor and carefully review what is reported that impacts EFC. Financial aid need = EFC less the Cost of Attendance. The greater the need, the more aid you qualify for.

I slightly disagree with what was said about everyone qualifies for loans. That is not entirely or wholly true. Maybe for lower cost and smaller institutions, but not for bigger places.
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Old 07-07-2021, 04:41 PM   #16
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Federal student loans qualifications are basic, you must be accepted to an accredited university, enroll at least half-time, register for selective service (male only!), citizen or eligible noncitizen (student visa, green card). There are no financial qualifications. Base on your need, some of your federal loan may be subsidized, the rest will be unsubsidized.
For a first year dependent student the max combination for subsidized/unsubsidized loan is $5,500.
If your son needs more than $5,500, then he will need either cash, scholarships or a parent loan.
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Old 07-07-2021, 05:04 PM   #17
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Quote:
Originally Posted by Dusty Britches View Post
One of the best things you can do to qualify for federal programs is sit down with the financial aid administrator / counselor and carefully review what is reported that impacts EFC. Financial aid need = EFC less the Cost of Attendance. The greater the need, the more aid you qualify for.

I slightly disagree with what was said about everyone qualifies for loans. That is not entirely or wholly true. Maybe for lower cost and smaller institutions, but not for bigger places.
Everything on the FAFSA inpacts EFC. The financial aid office isnt going to review it line by line with you. They get a record of what the student input into the FAFSA which has the EFC and the dependency status. I can say that the big 3 that play a roll in EFC are... AGI from the tax return, household size and # of household members in school. Even the estimators that are online are not accurate. However, even the age of a parent can impact the EFC. Why and how much... I couldnt calculate that exactly.

Federal loans under the Stafford Program are not need based aid. Only in cases where the EFC of a student is too high, will the student not be able to use the Subsidized portion. They will however, be able to use their entire eligibility as Unsubsidized loans( up to yearly and aggregate limits)

Institution size won't matter. What matters if if the institution is accredited and able to use Federal Aid. Anyone can do a FAFSA and find out what their EFC is and what they would qualify for in Federal Pell Grant and Federal Stafford Loans. You do not need to put a federal school code in to complete a FAFSA, only if you want the results sent to the school(s) of your choice.

Would a bigger place be A&M? They list Federal Direct Loans under "Types of Aid" on their website. Havard lists them as well.

Needing to use them might be a different story due to scholarships/grants available from Federal Aid, the school or an outside source.

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Old 07-08-2021, 09:31 AM   #18
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Subsidized loans are a need based aid and the sum of need based aid cannot exceed need. If your EFC exceeds need, you do not qualify for subsidized loans.

This is from the DOE SFA Handbook, Volume 3, Chapter 5. It has not changed in many (20+) years.

Quote:
The specific Direct Loan amount that a student or parent borrower is eligible to receive is determined based on various factors such as the studentís cost of attendance (COA), expected family contribution (EFC), other estimated financial assistance (EFA), and remaining eligibility under the annual and aggregate loan limits. Some of these factors are relevant only when determining eligibility for certain types of Direct Loans.

Direct Subsidized Loans and Direct Unsubsidized Loans have annual and aggregate limits that are the same for all students at a given grade level and dependency status. You may not originate a Direct Loan for an amount that:
  • Exceeds the amount requested by the borrower;
  • In the case of a Direct Subsidized Loan, exceeds the studentís COA minus the studentís EFC and EFA;
  • In the case of a Direct Unsubsidized Loan or Direct PLUS Loan, exceeds the studentís COA minus EFA; or
  • In the case of a Direct Subsidized Loan or Direct Unsubsidized Loan, would cause the student to exceed the annual or aggregate limit.
Not everyone qualifies for these loans.
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Old 07-08-2021, 09:33 AM   #19
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OP - I was trying to remember the name of the web site for searching private lenders - try

https://www.elmselect.com/v4/
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Old 07-08-2021, 09:45 AM   #20
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Quote:
Originally Posted by Dusty Britches View Post
Subsidized loans are a need based aid and the sum of need based aid cannot exceed need. If your EFC exceeds need, you do not qualify for subsidized loans.



This is from the DOE SFA Handbook, Volume 3, Chapter 5. It has not changed in many (20+) years.







Not everyone qualifies for these loans.
So does the student still qualify for federal loans? Yup, Unsubsidized portion only.

Pretty sure I laid that out in my first post. When I wrote the following 2 points.

1. Everyone qualifies for federal loans.

2. You might not qualify for Pell grant or Stafford Subsidized, but the student would then be eligible for Unsubsidized loans at the depdendent level.



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Old 07-08-2021, 12:21 PM   #21
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Not according to V3, Ch5. Not everyone qualifies. The institution cannot initiate a Direct Unsubsidized Loan that exceeds the student's cost of attendance less the expected financial assistance. This is not the EFC (expected family contribution).
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Old 07-08-2021, 12:34 PM   #22
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Have on in college and another one starts next month. School me on the best company for the parents portion of college student loans. Any of them low or no interest? The feds say we don't qualify for their loan.



Had what I thought was an "interest deferred" loan through Discover but turns out it accumulated almost $5000 in interest last year. Appreciate any leads.
Put everything in your kids name, she will qualify for pell grants (free, no repayment and the better she does in school she may get a higher amount after a couple semesters) and then she will qualify for both loans through FASFA and they are interest free until she stops going to school and repayment doesnt have to start for 6 months until her last class. You can still pay them and help her, it will just assure she qualifys for loans, some parents make to much and I can only imagine how much it costs to put two kids through college. I used pell and unsub/sub loans for what my GI bill wouldnt cover. Best of luck!

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Old 07-08-2021, 12:39 PM   #23
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Please talk to your kids about their choice of major and degree plan along with the earning potential that their chosen path will lead to while you're also talking about student loan debt. Colleges are great at selling tuition to students on borrowed money, but they almost never lead the student through a conversation and thought process about what financial life is going to look like 4 years later when the kid graduates with a pile of debt. If they will have strong earnings potential that will allow them to comfortably pay off the loans in 5 years or less, great. If they will only be able to afford to make minimum payments for 20+ years after graduation, then maybe borrowing all that money for that particular degree program isn't the smartest thing to do.
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Old 07-08-2021, 01:31 PM   #24
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Not according to V3, Ch5. Not everyone qualifies. The institution cannot initiate a Direct Unsubsidized Loan that exceeds the student's cost of attendance less the expected financial assistance. This is not the EFC (expected family contribution).
Not true. The student qualified for loans. The institution is able to award them due to other financial assistance(usually grants/scholarships)

So if cost of Attendance is 50k, and the student gets a 50k in scholarships/grants.. you can not award loans.

Once again... nothing to do with the qualification for loans.

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Old 07-08-2021, 02:12 PM   #25
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Originally Posted by Shane View Post
Please talk to your kids about their choice of major and degree plan along with the earning potential that their chosen path will lead to while you're also talking about student loan debt. Colleges are great at selling tuition to students on borrowed money, but they almost never lead the student through a conversation and thought process about what financial life is going to look like 4 years later when the kid graduates with a pile of debt. If they will have strong earnings potential that will allow them to comfortably pay off the loans in 5 years or less, great. If they will only be able to afford to make minimum payments for 20+ years after graduation, then maybe borrowing all that money for that particular degree program isn't the smartest thing to do.

This is spot on and CANNOT be stressed enough.

Thereís a degree for just about anything you can imagine. Very few of them are a good return on your investment of $$ and time.


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Old 07-08-2021, 02:37 PM   #26
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Originally Posted by AZST_bowhunter View Post
Put everything in your kids name, she will qualify for pell grants (free, no repayment and the better she does in school she may get a higher amount after a couple semesters) and then she will qualify for both loans through FASFA and they are interest free until she stops going to school and repayment doesnt have to start for 6 months until her last class. You can still pay them and help her, it will just assure she qualifys for loans, some parents make to much and I can only imagine how much it costs to put two kids through college. I used pell and unsub/sub loans for what my GI bill wouldnt cover. Best of luck!

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Old 07-08-2021, 02:39 PM   #27
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This is spot on and CANNOT be stressed enough.

Thereís a degree for just about anything you can imagine. Very few of them are a good return on your investment of $$ and time.


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Quote:
Originally Posted by Shane View Post
Please talk to your kids about their choice of major and degree plan along with the earning potential that their chosen path will lead to while you're also talking about student loan debt. Colleges are great at selling tuition to students on borrowed money, but they almost never lead the student through a conversation and thought process about what financial life is going to look like 4 years later when the kid graduates with a pile of debt. If they will have strong earnings potential that will allow them to comfortably pay off the loans in 5 years or less, great. If they will only be able to afford to make minimum payments for 20+ years after graduation, then maybe borrowing all that money for that particular degree program isn't the smartest thing to do.
^^^ These things can be stressed too much! Make sure they are working on an employable degree program. Also, re-think traditional college routes; look into online courses for some classes and consider a local college or jr. college where your student can live at home and avoid the dorm/living costs. Be sure that online classes are transferrable. I've put five kids through college and they each chose a different path for financial aid and employable degree programs (business, engineering, and education.)
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Old 07-08-2021, 02:49 PM   #28
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Interesting discussion
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Old 07-08-2021, 04:53 PM   #29
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So I'm a little confused. Parents portion of the student loan? If you didn't save for their college, then why are going to go in debt to put them thru now? I still don't understand the logic of going in debt to put a child thru school. Send them to community college and once they finish that, then off to a major university. That gives you two years to save enough to help them to complete their degree.

You raised your children 18 plus years. Why does everyone feel like they owe their children a $100K degree. It's crazy how everyone gets sucked up in this student loan scam.

BTW - I worked thru school and paid every cent of it on my own. I drove a crap car and didn't eat half the time, just so I could pay tuition. Do I blame my parents, heck no.
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