College Loans

[geauxgruene]

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.

[Death from Above]

the government mandated shutdown should have suspended last years interest on your student loans.

[Dusty Britches]

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.

[Dusty Britches]

Where are they going to school at?

[hopedale]

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.

[eradicator]

Always read the fine print. College 101..

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

[TexasCanesFan]

Can you not have your kid get the student loan in their own name, since they don’t have much income, and just pay it for them later?

[r_u_sharp_2]

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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[r_u_sharp_2]

Can you not have your kid get the student loan in their own name, since they don’t 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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[geauxgruene]

[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...

[TexasCanesFan]

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 can’t start that until October.

It all looks like grand fun [emoji2957][emoji2957][emoji2957]

[FIRE59]

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/programs/education/msp/funding/aid/scholarship/scaasf.php

[tdwinklr]

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.

[TexasCanesFan]

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

[Dusty Britches]

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.