Author Topic: Strategy for paying for college costs  (Read 255 times)

partgypsy

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Strategy for paying for college costs
« on: March 18, 2024, 10:48:13 AM »
So, oldest D is next fall will be in final year of college. Between her college savings account and my contributions plus summer job has been able to cash flow tuition+room and board +misc expenses. However for this final year her college savings account has been zeroed out. In addition, I may or may not be able to contribute as much this coming year. And she will need to live off campus (did not get into student housing). So, there is going to be a shortfall. I am trying to rent out my attic, but it is not  a guarantee. I said this is the time for student loans, but she said that she cannot take a student loan for off campus housing? What have others done in this situation?
   
« Last Edit: March 18, 2024, 10:54:00 AM by partgypsy »

partgypsy

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Re: Strategy for paying for college costs
« Reply #1 on: March 18, 2024, 10:52:06 AM »
Eta at least what I read, at least some college loans can be used for off campus housing? It sounds like I need to do some research on this.

Sibley

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Re: Strategy for paying for college costs
« Reply #2 on: March 18, 2024, 10:54:09 AM »
Money is fungible. Use loans to pay for tuition/books/fees/etc, non-loans to pay for housing. Obviously dependent on how much you/she are able to contribute.

Sugaree

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Re: Strategy for paying for college costs
« Reply #3 on: March 18, 2024, 11:07:37 AM »
I *think* loans can be taken out up to the amount of the published COA from the school.  Most schools, especially ones that don't require/guarantee on-campus housing, will provide that amount. 

partgypsy

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Re: Strategy for paying for college costs
« Reply #4 on: March 18, 2024, 11:26:28 AM »
Sugaree great. I think we need to find that out and whether loans that she's been offered(which so far she's turned down) can be used that way. The college does NOT guarantee college housing. There is housing crunch.  Even if she wanted, cannot live on campus. Yes money is fungible. But even if took out loan for tuition, would only free up like 2 grand (vs say 14 grand for room and board). Almost all her tuition is covered by scholarships and grants.
« Last Edit: March 18, 2024, 11:29:16 AM by partgypsy »

Shuchong

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Re: Strategy for paying for college costs
« Reply #5 on: March 18, 2024, 12:56:31 PM »
I *think* loans can be taken out up to the amount of the published COA from the school.  Most schools, especially ones that don't require/guarantee on-campus housing, will provide that amount.

Seconding this.  Federal student loans can be used for off-campus housing and for board as well, up to the cost of attendance.  (Private ones probably can be used that way as well, but I'm not familiar with those.)  The office of financial aid should be able to give you the COA -- many schools also have it posted on their website.  And it should be part of the financial aid package they've offered your daughter.  I would start with that.

If she's eligible for a subsidized federal student loan, I would go for that first.  The Government pays the interest while she's in school and for six months after (https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized), so there's a chance it could be essentially an interest-free loan if she's able to pay it back in full in the half-year after she graduates.

partgypsy

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Re: Strategy for paying for college costs
« Reply #6 on: March 18, 2024, 01:15:40 PM »
That's great info. So sounds like federally subsidized is the best.

Askel

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Re: Strategy for paying for college costs
« Reply #7 on: March 18, 2024, 01:21:35 PM »
Potential alternative: see if she can find a full time job with the school.   

I paid for the last year of my BS, all of my MS, and a good chunk of a PhD with the free tuition benefit my school offers full time employees.   

Although be warned, university hiring processes can take FOREVER, so definitely have a backup plan.   

partgypsy

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Re: Strategy for paying for college costs
« Reply #8 on: March 18, 2024, 01:26:22 PM »
Potential alternative: see if she can find a full time job with the school.   

I paid for the last year of my BS, all of my MS, and a good chunk of a PhD with the free tuition benefit my school offers full time employees.   

Although be warned, university hiring processes can take FOREVER, so definitely have a backup plan.   
I I don't think that's going to be possible. She has a major w alot of labs, and now will need to commute to school for classes, labs etc. as she's going to go off meal plan to save money, will also be responsible for shopping and meal prep... her schedule is going to be tight. She is planning on doing an internship or a regular job this summer.

 

Wow, a phone plan for fifteen bucks!