Strategy for paying for college costs

[partgypsy]

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?
   

[partgypsy]

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]

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]

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]

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.

[Shuchong]

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]

That's great info. So sounds like federally subsidized is the best.

[Askel]

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]

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.

[roomtempmayo]

She can take out loans up to the cost of attendance.

That money gets deposited in her student account.  Tuition gets paid first.

She signs a declaration that the other money is going for approved expenses.

The school then cuts her a check for the positive balance.

Nobody is interested in following up on where the money goes as long as she remains in good standing.

[wageslave23]

She can take out loans up to the cost of attendance.

That money gets deposited in her student account.  Tuition gets paid first.

She signs a declaration that the other money is going for approved expenses.

The school then cuts her a check for the positive balance.

Nobody is interested in following up on where the money goes as long as she remains in good standing.

This. I paid for tuition, apartment, food, beer, weed, and had a few thousand left over that I eventually put towards a down payment on my first house with student loans.

[partgypsy]

Thanks all. She is focused on the last month of school but after that we will review all this info..I'm sure her situation is not unique.

[lhamo]

She needs to be creative about how to keep her housing and food costs to a minimum.

If there is a housing crunch, she should be able to find a room in a house share -- sharing a room as if she were living in a dorm is going to be much cheaper than even having her own room, and WAAAY less than having her own apartment.

She should learn when/where all the sources of free food are on campus.  Some clubs spring for meals.  Many departments will have regular seminars, special lectures or or other events that are catered.  You can often get free meals this way, and if there is food left over at the end you can take the leftovers.  Make friends with the department administrators where these events happen and offer to help with setup/take down in exchange for free food.  Bonus if this is in an area of her academic interest, because she can learn things from the lectures and network with faculty/grad students.

Otherwise, learn to cook things that are simple and cheap, and do batch cooking to save time.  And instant pot or crock pot can be great for this. 

See if there is a food bank on or around campus.  Many schools now have free food and supply pantries for students.

If she doesn't already have an internship lined up for summer, she probably isn't going to get a paid one.  She should prioritize paid work, even if it is something mundane like fast food.  Can also be a source for free or reduced-cost food if she is able to keep hours PT once classes start back up.

Good job on getting her this far without loans!  It isn't a disaster that she might have to borrow a bit to finish up.  I would give her incentives to keep the amount low, and help her with rapid pay off (say match her payments 1:1 or 2:1) once she graduates/gets employment.

[MaybeBabyMustache]

We've done a lot of college tours lately, and to echo lhamo, a lot of schools now have a food pantry available, which could really help her keep food costs down.

And, agree that it's awesome she's gotten this far without loans. This year should be about minimizing what she needs to take out, while not totally stressing about the amount she needs for this year. A balance between as much optimization as possible without risking her education, while minimizing loans.

[secondcor521]

Have her check with the department for her major(s) and minor(s) to see if they have any ideas.  The department secretaries probably know about departmental scholarships, internships, work study, paid tutoring, etc. going on in their areas and may be able to connect her with the appropriate folks.

Ditto the financial aid office, although I think the specific departments will be a better bet.

[wageslave23]

She needs to be creative about how to keep her housing and food costs to a minimum.

If there is a housing crunch, she should be able to find a room in a house share -- sharing a room as if she were living in a dorm is going to be much cheaper than even having her own room, and WAAAY less than having her own apartment.

She should learn when/where all the sources of free food are on campus.  Some clubs spring for meals.  Many departments will have regular seminars, special lectures or or other events that are catered.  You can often get free meals this way, and if there is food left over at the end you can take the leftovers.  Make friends with the department administrators where these events happen and offer to help with setup/take down in exchange for free food.  Bonus if this is in an area of her academic interest, because she can learn things from the lectures and network with faculty/grad students.

Otherwise, learn to cook things that are simple and cheap, and do batch cooking to save time.  And instant pot or crock pot can be great for this. 

See if there is a food bank on or around campus.  Many schools now have free food and supply pantries for students.

If she doesn't already have an internship lined up for summer, she probably isn't going to get a paid one.  She should prioritize paid work, even if it is something mundane like fast food.  Can also be a source for free or reduced-cost food if she is able to keep hours PT once classes start back up.

Good job on getting her this far without loans!  It isn't a disaster that she might have to borrow a bit to finish up.  I would give her incentives to keep the amount low, and help her with rapid pay off (say match her payments 1:1 or 2:1) once she graduates/gets employment.

I dont know, this sounds like scarcity mindset to me. Why worry about a few thousand dollars here and there, when she will hopefully be making six figures plus in a few years and trying to decide whether she's going to save 50% of her income or 60% of her income. That's the way I treated student loans and I don't regret it. I graduated with $60k of student loans which felt like a lot to 22 yr old me. But it's a good quarter in the market now. I say live the way you plan to live the rest of your life, in an economical but sustainable way. All the people on these forums debating between retiring at 40 or working one more year are testaments to the fact that she will most likely have a huge surplus of cash in the end.

[chrisgermany]

TheFrugalGirl had a piece in her blog on getting scholarships, even small ones, 2 weeks ago. Her readers contributed  even more advice.

[partgypsy]

She's gotten a bunch of scholarships, including one that she applied for via her department and got after she started attending. So she has been creative about scoring $ and minimizing college costs. Housing, well, there is only so much we can do. It is literally the 3rd hottest housing market in the country. Those cheap college houses, are no more. Inexpensive housing, far away, or in not great neighborhoods. I would prefer her pay a little more, esp as it is only for 1 year.   
She is a very responsible person and knows how to cook. Even if she does need to take out loans, it feel this will be manageable.
She has not yet decided, if she wants to go to work after graduation, or go on to graduate school. She would prefer to go to grad school, but hasn't decided.