Proper order to take on student debt

[soccerluvof4]

So things have changed with one of my kids and there walking away from two years of scholarship to transfer to another school. Hes still getting scholarship for the transfer but while we will help a some he needs to take on more debt as I feel we have done our part. He is getting/applied in his first two years and qualified total for about 9k for FAFSA. What would be next and if you could direct me to help him or is this something the new school will do. What to watch out for etc?? Tips , Ideas suggestions...
Im guessing in all he will graduate at an out of state school at most with 30-35k which to me is still to much but thats another story.

[katscratch]

There definitely should be someone in the Financial Aid Office at his new school to help him with this. Work study, part time off campus job, giving up a car are all things my own kiddo did this year (his third) to help offset costs.

[soccerluvof4]

There definitely should be someone in the Financial Aid Office at his new school to help him with this. Work study, part time off campus job, giving up a car are all things my own kiddo did this year (his third) to help offset costs.

No he will definitely do some of that I meant loans. After FAFSA whats the best route for him to borrow. I dont think as I mentioned he will need much be he doesnt qualify for hardly any FAFSA money. Also the less I would have to cosign the better.

[magickelly]

I'm confused what you mean by qualified for FAFSA. FAFSA is the form you fill out to determine your family's expected contribution (often referred to as your EFC for shorthand) it is not a form of financial aid in and of itself.

Is your EFC 9K? (Meaning you're expected to be able to afford up to 9K per year towards costs)

or...

Is 9K what's left after you subtract expenses from your EFC? (For example, if total estimated costs per year are 40K at the college of you kid's choice and your EFC is 31K, then you qualify for 9K in financial aid.)

The best route for borrowing are government-backed Stafford loans, take the max of subsidized (if you qualify, you have to be lower income) and then take unsubsidized ones. Unfortunately the other type of gov't backed loan, the Perkins loan, looks like it was recently discontinued by Congress. Stafford loans have better interest rates, are easier to defer or put into forbearance. They can also be consolidated after graduation so you can lock a good interest rate for the life of the loan if the T bill is low. (* note that it seems like Stafford loans are now called Direct Federal loans, though a quick google is a little confusing)

After maxing the Stafford loans, you probably have to go to a private loan and in this case I'd advise you to just shop around as you would for any loan for the best deal on terms and interest. Beware that private student loan debt is just about the worst kind of debt to have outside of being indebted to a loan shark with hit men.

Like others, I would insist on giving up a car, take a work-study or part-time job and/or any other frugal means before maxing a loan. It sets up much better financial habits and won't follow you around like a ball and chain after graduation.

Also second the recommendation to talk to the school. Every school has financial aid professionals and college admissions professionals who can help you navigate this. (Small disclaimer: I was a college admissions counselor in the 90s before switching careers, hopefully none of this info is too out of date or incorrect, which I why I strongly recommend you to talk to one if you don't have a better resource than us here at MMM.)

[soccerluvof4]

I'm confused what you mean by qualified for FAFSA. FAFSA is the form you fill out to determine your family's expected contribution (often referred to as your EFC for shorthand) it is not a form of financial aid in and of itself.

Is your EFC 9K? (Meaning you're expected to be able to afford up to 9K per year towards costs)

or...

Is 9K what's left after you subtract expenses from your EFC? (For example, if total estimated costs per year are 40K at the college of you kid's choice and your EFC is 31K, then you qualify for 9K in financial aid.)

The best route for borrowing are government-backed Stafford loans, take the max of subsidized (if you qualify, you have to be lower income) and then take unsubsidized ones. Unfortunately the other type of gov't backed loan, the Perkins loan, looks like it was recently discontinued by Congress. Stafford loans have better interest rates, are easier to defer or put into forbearance. They can also be consolidated after graduation so you can lock a good interest rate for the life of the loan if the T bill is low. (* note that it seems like Stafford loans are now called Direct Federal loans, though a quick google is a little confusing)

After maxing the Stafford loans, you probably have to go to a private loan and in this case I'd advise you to just shop around as you would for any loan for the best deal on terms and interest. Beware that private student loan debt is just about the worst kind of debt to have outside of being indebted to a loan shark with hit men.

Like others, I would insist on giving up a car, take a work-study or part-time job and/or any other frugal means before maxing a loan. It sets up much better financial habits and won't follow you around like a ball and chain after graduation.

Also second the recommendation to talk to the school. Every school has financial aid professionals and college admissions professionals who can help you navigate this. (Small disclaimer: I was a college admissions counselor in the 90s before switching careers, hopefully none of this info is too out of date or incorrect, which I why I strongly recommend you to talk to one if you don't have a better resource than us here at MMM.)

Yes your correct I didn't explain that right. We filled out the FAFSA for the Stafford loan. This year 2018/2019 he qualified for about 6500 which was all he needed and we filled out for next year looks like he will qualify for up to 7500$ for 2019/2020.  I will have him as well do what you suggested and at least look into it. Thanks