Author Topic: Student Loans for college?  (Read 529 times)

albireo13

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Student Loans for college?
« on: July 10, 2018, 05:52:17 PM »
I'm looking for good advice on where to look for the best student loans.
My 26yo son has an Associates degree in Forestry.  He has been working for several years for landscaping companies, etc and is tired of it.
He is a hard worker and has decided to go back to college for a BS in Environmental Sciences, to pursue a more professional career.
Anyway, I want to help him with finances so he doesn't get out all loaned-up.  We don't have much availabl cash since we've been salting away for retirement.  I hope to retire in 2 years.

Anyway, it's been awhile and, beyond just googling, would welcome some direction to good student loan sources for my son.   
I may or may not dip into retirement to help pay for college.  If not, I will help pay off student debt before I retire, as best I can.
I am not providing a free boat education but, I'd like to keep his debt to $40K range if possible.

Thx for any advice.




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mozar

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Re: Student Loans for college?
« Reply #1 on: July 10, 2018, 08:35:57 PM »
My advice is that he makes his own case study here, and don't dip into your own retirement to pay for his college.
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Hargrove

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Re: Student Loans for college?
« Reply #2 on: July 11, 2018, 12:32:11 AM »
He'd have to blow an awful lot of money to wind up with more than 40k extra debt left over for 2-3 more years in a relevant extension of his associate's degree, especially if he's working at all while this is happening. Undergrad degrees don't generally require the gilded universities, and he has experience already beefing up his resume. Does he have a sponsor, or does he know where or for what, exactly, he's hoping to be hired?

If you're going to retire in 2 years, he wouldn't even be done yet (assuming Jan semester start). It would not likely seriously impact your retirement to make his payments that year, say, instead of figuring out how to give him 20k tomorrow.

All he has to do is fill out a FAFSA to see what grants he qualifies for. Then he applies for loans federally to cover whatever grants don't, and scholarships can be used to pay down those loans as well. Those rates are better than you will probably find privately (5.05-7.6% until July 2019). If he qualifies for subsidized loans, they're interest-free while he's in. Fastweb.com is a list of more scholarships than you could ever want to apply for, which may also help.
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Sibley

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Re: Student Loans for college?
« Reply #3 on: July 11, 2018, 10:09:24 AM »
He's an adult, send him here.

That sounds harsh, but the more you help, the less he learns. Let him figure it out.

FIRE@50

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Re: Student Loans for college?
« Reply #4 on: July 11, 2018, 11:28:57 AM »
Without trying to pile on here, $40k does sound high. Find a low cost state school. Complete FAFSA. Hope for subsidized loans. You say he has been working for several years. Does he have some money saved up? Does he plan to keep working while in school?

simonsez

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Re: Student Loans for college?
« Reply #5 on: July 11, 2018, 12:05:45 PM »
"More professional career" sounds like a nebulous term.  I'd sit down with them and ask them for specifics about what they envision doing with this prospective degree.  If they have contacts including both peers at prospective lateral positions and supervisors/HR staff at specific companies, actual positions that sound like what they want, know a little bit about the certain field including expected wages/benefits - then that's a good start.  If they think those things will open up after the degree and they're more or less betting on the come and aren't exactly sure what they want, that may or may not be true but is riskier from a financial perspective.

I agree with the others, be a guide and offer advice but don't assist financially via your own retirement.

FWIW, doesn't hurt to try credit unions to see what their personal loan rates are if they have good credit and a house (especially if mortgage financed through credit union).  This was post-school but I know someone who refinanced their private loans to 3%.


Fishindude

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Re: Student Loans for college?
« Reply #6 on: July 11, 2018, 12:56:17 PM »
I agree that at 26 years old, he should be figuring out how to pay for any additional education on his own.
He should be saving $$ at his current job so he can pay for college if he chooses to go back, and no reason he can't work a job while getting that education.
I would not encourage borrowing to pay for it.

patchyfacialhair

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Re: Student Loans for college?
« Reply #7 on: July 11, 2018, 01:13:27 PM »
Unless he's making a ton of money, he probably qualifies for substantial aid. At his age, your income won't be considered, so I'd say that he should find a school that would provide a good fit and be low cost of attendance, net of any aid.

Then from there, feel free to help him as you see fit.
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Jon Bon

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Re: Student Loans for college?
« Reply #8 on: July 11, 2018, 01:47:45 PM »
He's an adult, send him here.

That sounds harsh, but the more you help, the less he learns. Let him figure it out.

It sounds perfect! You should be a motivation speaker for anyone born after 1980.

If the OP is feeling super supportive they could spring for books or maybe pay some of the silly fees that university's tack onto the bill these days. A few thousand bucks is not going to make a difference to the OP but probably would do the son.

Is this 40k in total expense or 40k that you are willing to pay out? Because 40k in help to a 26 year old MAN is a joke.  If I asked my parents for that they would probably laugh at me, and they would be right.


SimpleCycle

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Re: Student Loans for college?
« Reply #9 on: July 11, 2018, 02:26:56 PM »
At 26 he is considered an independent student, and therefore the FAFSA will only look at his income and assets, not yours.  This is actually a huge blessing, as your assets would essentially disqualify him from all financial aid.

Anyway, I'm probably the most student loan friendly person on the entire board, and even I say that $40k for a bachelors is way too much for someone who can transfer in associates credits.  But it's a moot point, he should be doing 99% of what needs to be done to go back to school, and you can help him as you see fit.

albireo13

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Re: Student Loans for college?
« Reply #10 on: July 11, 2018, 03:41:20 PM »
These day's $40K is nothing.
He's been accepted in a state U, which is actually low cost compared to private schools.  Just tuition is ~ $19K for in-state.
He has little to no savings since he's been just getting by.  It looks like it will be 3 years to finish, due to course requirements.
 
Unfortunately he has no sponser at this point.
He's doing all the work on this and is sniffing around for student loan leads but, I thought I'd look as well.  He'll be taking out the loans, not me.


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Jon Bon

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Re: Student Loans for college?
« Reply #11 on: July 11, 2018, 05:34:18 PM »
These day's $40K is nothing.

I guess depends on what he is planning on.

Working and going to school part time, paying for a small affordable apartment. Or taking 3 years to find himself while living in dorm/student housing financing every penny of it?

I mean he is 26, he has 10x the life skills most college students have, so he should easily be able to work part/three-quarters/full-time , and absolutely crush his classes. Yeah he might not have the 'college experience' but at 26 I doubt he would want to party with a bunch of teenagers.

Tuition to decent state schools  where I am is about 8-12k, maybe another 2k in fees. I would keep looking.

He also knows about how to live on his own I assume, so do a little math with him, show him what that loan burden will look like on his new salary.  For example sure hes now making 30% more, but with a 400 a month loan payment for 10 years makes it a wash.

Yes if it moves him from "Job track" to "Career track" probably worth a look. I would really encourage him to try and keep those loans down! 19k tuition only does not sound like a good start!

SimpleCycle

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Re: Student Loans for college?
« Reply #12 on: July 11, 2018, 08:51:12 PM »
These day's $40K is nothing.
He's been accepted in a state U, which is actually low cost compared to private schools.  Just tuition is ~ $19K for in-state.
He has little to no savings since he's been just getting by.  It looks like it will be 3 years to finish, due to course requirements.
 
Unfortunately he has no sponser at this point.
He's doing all the work on this and is sniffing around for student loan leads but, I thought I'd look as well.  He'll be taking out the loans, not me.

Did he fill out a FAFSA and apply for aid?  These days someone with his profile (few assets, planning to go to school full time) is rarely paying full price.  And he should be eligible for more federal loans because he is an independent student.

Iím happy to talk through loan options, but we really need to know the aid situation.

rdaneel0

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Re: Student Loans for college?
« Reply #13 on: July 11, 2018, 10:29:02 PM »
My husband went back to college in his late 20s. He saved up as much money as possible ahead of time, worked full time while going to school, did two years of community college and then transferred to an in state public 4 year school. All in he graduated in 4 years with $6k in debt, which we paid off within months before interest kicked in.

I agree that he should be the one to figure it out. It's kind of a good litmus test. If he really really really wants to go back to school he'll do what it takes to make it happen.
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albireo13

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Re: Student Loans for college?
« Reply #14 on: July 12, 2018, 04:33:07 AM »
He has filled out his FAFSA and applied to aid.  Just waiting to hear from the University now.
He expects to not get much aid, and having to finance most of it all.  He is a hard worker, working 6 days a week full time the last 2 years, and is planning on working part time while studying.

I think he'll do well scholastically.  The personal finances side ... not so sure.
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