Saving on bills in secret?

[Cheetahwoman7]

Lisa, I would double check into your being able to get financial aide without your parents' signature. It used to be that if you could prove you lived "outside the home" for at least two years, you could claim yourself as an independent and not have to have your parents income figured in on your getting the aide.

Sit down with one of the real financial aide counselors at your school (not one of the student aides....they may not be as knowledgable about the laws/rules) and explain your situation to them. Then talk to them about housing on the school grounds. Search the college housing boards and see what's available/affordable for the two of you. I liked Princess Perky's suggestion about getting a room instead of an apartment. You'll still save money and be out of the situation that's now driving BOTH of you nuts.

Also, see if the financial aide counselor can hook you up with some college funds/scholarships, not just the Federal ones. Might be better to get a workstudy job on campus than working the job you currently do.

Anyway, just some ideas. Hope it works out for you.

[Joan.of.the.Arch]

If your parents are claiming you as a dependent, then your FAFSA application reflects their income. You might get financial aid (or more financial aid) if you apply based soley on your own income, not at all on theirs. That would only be fair since they really aren't supporting you at all anyway.

I have to wonder if you are not actually participating in something illegal to allow them to claim you as a dependent, when you really are not one.

I agree that getting out of the house for stated periods of time could give some relief to your hosts and maybe to yourselves. I've taken in adult relatives three different times, and yes, the privacy loss was very hard.

[abowers]

If you are still technically a dependent, as far as the FAFSA goes -- you'd need to show paperwork proving one of the following in order to fill it out as an independent.
You're IN-dependent this year if:
you were born before Jan 1, 1983,
if you are working on a grad degree,
if you are are married,
have children receiving more than half their support from you,
both parents are deceased or you are a ward of the court,
or you're a veteran.

I think that's all of them.

Otherwise if the FAFSA lacks a parent signature it will raise a flag to the school, and an EFC and award package won't be created.

[rickatheslicka]

Yes, abowers is right about the definition of a dependent, BUT like others have said, I think if you talk to your financial aid counselors, you may be able to plead "special circumstances" or even become emancipated from your parents in the eyes of the school.

I was in a very similar situation when I was in college (completely supporting myself but having my parents claim me as a deduction). I spoke to a fin aid person about becoming emancipated, and at that time (10 years ago), there was a huge disadvantage - it would have meant having to take a Federal PLUS loan, possibly instead of a Stafford loan. The interest rate on PLUS loans was higher than Staffords.

But I believe that with the new law freezing Stafford Loan interest rates at ~7%, the difference is probably mimimal. And it would certainly qualify you for more need-based scholarships if they were only looking at your income, and not your parents. So it is definitely worth looking into.

The thing about the fin aid offices is that they have a limited number of resources, but guess who gets them, the people that ask for them. Every year I was offered a Stafford loan even though I fit the criteria for a Perkins loan (which are much better), and every year I had to go to the fin aid office and say, "Is it possible for me to have a Perkins loan instead?" And they were always able to make it happen, but only because I asked.

The suggestion of getting a work/study job is a very good idea.

One other quick thing that you may not realize - students do not have to pay Social Security and Welfare. Work/study jobs are clearly given to students, so the school generally omits these taxes, whereas private companies do not know to do this. So it may be simpler to have a work/study job, or you may be able to fill out a form (?) to have these no longer taken out of your paychecks. Just keep in mind, this means more money in your pocket now, but you will not be acquiring credits toward disability and Social Security. But you will have the rest of your non-student working career to earn credits, and even if you do get injured in the next few years, you probably would not have earned very many credits anyway, so the payout would be very small. It is a tiny gamble, but worth it I think when every take-home dollar counts, just be aware.

[abowers]

FYI--
Perkins Loans are based on EFC, so it may be possible that you are ineligible for them. Also, if you are a Junior or Senior and are not Pell-Eligible (EFC $3850 or less) it is unlikely you will get one. These are 5%

Stafford Loans are based on need (whether they are subsidized or unsubsidized) and are fixed at 6.8%. $2625 for Freshmen, $3500 for Soph, and $5500 for Jr & Sr.

PLUS loans are currently 8.5%. If denied for a PLUS, you are eligible for an additional $4,000 unsub Stafford if you are freshman or sophomore, and $5,000 unsub if you are Jr. or Sr. That is, in addition to the above listed Stafford amounts.

[abowers]

"Just keep in mind, this means more money in your pocket now, but you will not be acquiring credits toward disability and Social Security"

I think anyone in college now will not be getting too much in Social Security in 40-50 years when we are able to retire anyway. So they say.

[rickatheslicka]

Originally Posted by abowers

I think anyone in college now will not be getting too much in Social Security in 40-50 years when we are able to retire anyway. So they say.

Great point!

I don't meet any of the requirements for being independent as far as Finacial Aid goes. I'll be 22 in October, not 24. I'm not married, I don't have children, and I'm not an orphan, nor am I an army veteran. I just became a junior over the summer, but my FAFSA was completed when I still was a sophomore, so I was only eligable for loans up to $3500 I believe. I did get a grant, because even though my parents' income is considered, they're very poor, and I always get the grants, but they aren't enough to completely cover tuiton, not to mention textbooks, school supplies, gas to get to school, etc. I've considered work/study, but if I did that, I wouldn't be able to afford my living expenses. I'm living with the future in-laws, but I still have to buy gas and my own soap and such (They only cover food). Work/study payments go only toward tuition, and that won't help me with other costs. And, I would definitely not be able to get an apartment without an actual paycheck. I'm currently working at Wal-Mart, and I make $7.20 an hour (will get a raise in 90 days) and $8.20 an hour on Sundays. I have been working 35 hours a week, but I have to reduce it to 24 a week, because I literally have no time to do homework or study, and if I flunk out of college, there's no point in going through any of this anyway. I've been getting the Subsidized Stafford Loans for myself every year, in which the Gov't pays my interest until I graduate. My parents did get a PLUS loan my FIRST semester of college, but under the conditions that I have to pay it back, not them. Anyways, hope this info makes more sense of things.

[rickatheslicka]

Lisa,
Without knowing all the details of your situation, I am a little confused by what you're saying. This is my understanding of how fin aid works: the school estimates your total tuition and living expenses for the year, then subtracts an estimate of what your parents can supposedly afford (estimated parental contribution), and finally subtracts an estimate of what you personally can afford (your estimated contribution). The school WILL/SHOULD find a way to come up with any remaining balance, through loans, grants, scholarships, and work/study. Now, if your parents' estimated contribution is substantial, I can see how you are coming up short every year (since they are not helping you) - all the more reason to try to be declared independent. And if their contribution is not substantial, then I don't understand why you are coming up short, unless you are declining the work/study and maybe some loans.

At least when I was in college, I got a paycheck for my work/study jobs, and I could use that money toward living expenses. On your financial aid award letter, the school will apply your estimated total earnings at your work/study job toward your total financial need (including tuition), but you should be able to use it for living expenses. Get some details on this to be sure, things may be different now or at your school. But even if it were applied to tuition, that would free up money elsewhere, right? Maybe you would have some leftover loan money to use toward expenses.

Like I said, I was in a very similar situation. My parents would have asked me to pay off the PLUS loan, too, luckily they did not qualify for one (too poor).

You really need to talk to your financial aid counselor, clearly you do not meet the obvious criteria for becoming independent, but they will sometimes make exceptions (I believe you would be called "emancipated."). And since your parents insist that you pay back the PLUS loan, you might as well be independent and take them out in your name.

You also need to stop working so many hours. The semester I worked full time, I wrecked my GPA, and even worse, the next year, the school looked at my earnings from the previous year and said that I should be able to pay for my tuition (in other words, suddenly my estimated financial contribution was no longer $0, and I didn't qualify for as much financial aid). I figured out that I could really only make about $6000 a year before it would end up hurting my chances for financial aid later. So I scraped by that year, and the next year my earnings were low enough so that I qualified for aid again. Please don't shoot yourself in the foot like this. You say that you need to work to cover your living expenses, but the school expects you to be saving that money for next year's tuition. It's a backwards way to calculate fin aid, but that's how it is, so try to work within the confines of the system.

Don't be afraid of loans. You can usually take out an extra Stafford loan if you need to, but it will be unsubsidized. Sometimes that's just what you have to do. The scary monthly payoff numbers you see in the brochures assume a 10 year payoff, but most banks will let you consolidate your loans with a 20 or 30 year payoff, reducing the monthly payoff. Or maybe you can do one of the special loan forgiveness programs, like teaching at an inner city school. But you must not sacrifice your grades by working so much or by being so stressed out living with the future in-laws. You can work out something to pay off the loans, it is much harder to work out something to fix bad grades.

So in summary, please talk to your fin aid counselor, I think there are many more options available to you. Good luck and let us know how it goes!

Originally Posted by rickatheslicka

You also need to stop working so many hours. The semester I worked full time, I wrecked my GPA,

I think you may have missed in my last post where I said:
"I have been working 35 hours a week, but I have to reduce it to 24 a week, because I literally have no time to do homework or study, and if I flunk out of college, there's no point in going through any of this anyway"

My hours are getting reduced, and actually, I talked with Nate and we decided to go ahead and get married. We're not doing the ceremony or any of that, we're just gonna go get the papers signed and get it legal so I can start applying for financial aid on my own, without my parents. I didn't mention that I am still on my mom's insurance, though I rarely ever go to the doctor because I can't afford the $25 co-pay. However, I think I'll be okay because healthcare is included in my school tuition, and I can go to the health center on campus if I get sick or anything. I'll also start having to buy my medicines from the campus pharmacy, but those should be dicounted too I believe. Also, by us getting married, they should consider our income together and I should be able to get the apartment as I won't be "dependent" on my parents anymore.

I realize expenses will go up this way, and I'll have rent, electricity, and water to pay for, but after living on my own before, I learned how to be extremely frugal, and can be a money-saving crazy woman when I need to be. I hope it all works out.

[rickatheslicka]

Okay, glad to see that you are cutting back on the hours.

That is wonderful that you and your fiancee decide to go ahead and get married, at least on paper. I am so glad that you are able to find a solution.

Definitely take advantage of the health center on campus, and yes, they should have discounted prescription meds. Ours had discounted over-the-counter meds, too.

I think you are more than equipped to have your own place, and of course, any time you need tips, you know the people on the forums will have some advice for you. LOL!

But seriously, I wish you all the best. Hang in there, and try to enjoy college, it should be a FUN time in your life, not angst-ridden over finances. Good luck!

[PrincessPerky]

Originally Posted by lisasayzhi

.... I didn't mention that I am still on my mom's insurance, though I rarely ever go to the doctor because I can't afford the $25 co-pay. However,....

This raisies a red flag in the 'marriage book' failure to tell the truth is still lying..do you want to start your married life out by lieing to him?

I still think you are right and marriage is the best option if you really want to be with him, I just don't think a lie is the way to get it.....

[rickatheslicka]

I think she meant that she didn't mention to US (the forum) that she is still on her mom's insurance.

The thing that worries me is that she can't afford the $25 copay, I think she needs to reexamine her financial aid package, and talk to the school, they should be willing to help her out.

[PrincessPerky]

oops appologies!

[abowers]

"I just became a junior over the summer, but my FAFSA was completed when I still was a sophomore, so I was only eligable for loans up to $3500 I believe."

-->Call the financial aid office, once you've got at least 54 credits you will be considered a Junior and they can up your Stafford to $5500, even though you were only a sophomore when you did the FAFSA.

Originally Posted by PrincessPerky

This raisies a red flag in the 'marriage book' failure to tell the truth is still lying..do you want to start your married life out by lieing to him?

I still think you are right and marriage is the best option if you really want to be with him, I just don't think a lie is the way to get it.....

What? No no no, he knows about all of that, I haven't lied to him at all. He knows about the insurance and everything.

[PrincessPerky]

Sorry misunderstood, very sorry.

[boefixepa]

Congrats on the wedding!! I hope that it helps you work out many problems, let us know how it goes!