Advice for college student

[La Profesora]

Good morning! I need advice. My daughter has a good friend who is bright and wants to go to college. He is trying to keep his grades high and score well enough on the ACT to receive scholarships. The problem is his parents are not going to contribute anything toward his education. So, he is going to have to do it all on his own. I am trying to help advise him. I am sure that even with scholarship money, he will need to take student loans. If his mother is still claiming him as a dependent so he can have insurance, does she have to be the one to get the loan for him? The problem is I am pretty sure she has bad credit. Also, if she gets a student loan for him, can she get her hands on his money?

I am a teacher, but I am not a school counselor so I am not familiar with how this works. Does anyone know if he can obtain the loan on his own? Also, is there anyway he can set it up so that his parents can't touch his money? He has more common sense than either of his parents, and he has more money sense also, but being a teenager, he doesn't know where to start. Can anyone point me in the right direction to find resources to help him? I appreciate any and all advice. This is a great kid. It isn't his fault how his parents are.

[auron]

Both a parent and their student can take out student loans through the government. One is the Parent Plus category and the other is the normal student loan. A parent cannot touch the money taken out directly by the student. Depending on where it is deposited, a parent may have access to the Parent Plus loan.

Student loans CAN be useful, but I would first ask, what degree is he going to go to school (assuming non-private/non-rediculous tuition school) for? If it's something in Science/Engineering then go ahead and make up the difference in student loans.

I don't mean to be on a soapbox for science/engineering, but many of my friends I graduated (2010) with that were not in these fields simply can't find a job using their degree.

Impress on him the importance of using the least amount of debt possible in college even if that means having a part time job and taking longer to graduate.

[BudgetSurgeon]

Encourage him to go to a top State University........that will slice his bill by 50% - 75% right out of the gate. Private school attendance does NOT mean better jobs and higher salaries. Make sure you emphasize that to him, and that will reduce the amount of his required loan, and reduce the chances that his co-signer (Mom) will get denied for the loan.

[breathemusic]

First of all.. he needs to see what he can do in the little bit of time he has left to fix his credit. If he has overdue bills, he should be working to pay them off (I assume he has a part time job? And if not, he should probably get one and start saving up for college).

I had to pay my own way through school, so I understand the situation. He definitely can get lots of scholarships if he applies for them and works hard to keep his grades up, etc. Personally, I would suggest looking for at local scholarships as the odds of winning national ones are much harder for all the essays you have to write. Also, if he can find scholarships that pay for all 4 years, that's also a great.

As for what school to go to, he shouldn't just not apply to a private school just because they have higher tuition. Private schools may cost more, but depending on his family income, if they don't make much and he qualifies for financial aid, then private schools can often come with a MUCH higher fund for covering those things. Out of all the schools I applied to, the best and most expensive one was also the most affordable one because they gave me TONS of scholarship money.

I don't think it's bad to take on student loan debt as long as you understand your limitations and don't take out an unreasonable amount of debt. As for the loans, if he can check up on his credit and try to straighten it out, he can probably get all his loans in his own name (I was able to, at least).

And he should definitely plan to work part time during college to minimize the amount of loans he would have to take out!

[La Profesora]

Thanks for all suggestions. The debt isn't his. It is his mother's. The problem is his parents mislead him into thinking there was a college fund. It doesn't exist. So, now he has to scramble to get himself in a position to go to pay for school. He is willing to go to a community college for at least the first year, but even with scholarships, he will need money to make up the difference. The problem I am trying to avoid is his mother taking out a loan that he will have to repay but that she could run through and not apply to his school.

This might sound like a far-fetched idea, but he has reason to worry about this. He thought he had money in the bank that he had saved for school. She has spent that. I don't want her issues to keep him from college. Anyone with ideas of the best way to get him financial aid that SHE can't ruin with her credit or spend once he obtains it will be appreciated. He does plan to apply for every scholarship possible, but I know those are very competitive.

[La Profesora]

Both a parent and their student can take out student loans through the government. One is the Parent Plus category and the other is the normal student loan. A parent cannot touch the money taken out directly by the student. Depending on where it is deposited, a parent may have access to the Parent Plus loan.

Student loans CAN be useful, but I would first ask, what degree is he going to go to school (assuming non-private/non-rediculous tuition school) for? If it's something in Science/Engineering then go ahead and make up the difference in student loans.

I don't mean to be on a soapbox for science/engineering, but many of my friends I graduated (2010) with that were not in these fields simply can't find a job using their degree.

Impress on him the importance of using the least amount of debt possible in college even if that means having a part time job and taking longer to graduate.

If he doesn't have any savings, can he still obtain a loan on his own? He had saved a small amount for school, but she got ahold of it, and it is gone. If you haven't already inferred, she has some big financial issues. I don't want him to pay for her problems.

[sblatner]

I'm not an expert but I do have a junior in high school so have been reading up on this very subject. I think any college student can get a Stafford loan. He can get $5500 his freshman year and the amount increases a little bit each year. These are the loans that don't have to begin being repaid until six months after he is no longer in school (you should check this but this is what I think I understand). He can get more if his parents were denied a PLUS loan. You should check in your area to see if you have a college financial aid company. We have one where we live and the gal provides a one hour complimentary consultation. Also, our high school has a college & career counselor who knows a lot about this stuff, too. Maybe his high school has a similar counselor or his guidance counselor can help. He is lucky to have you helping him find out information. I feel sorry for kids who have to do this on their own. It is much more complicated now than when I was in high school.

[moneybags]

What grade is he in? If he is not a junior yet, check out the National Merit Scholar program: there is a test called the PSAT that can lead to lucrative scholarships - full rides guaranteed- if you do well on it. It has to be taken junior year. Many people aren't aware of this test or the opportunities it can bring. You can study for it!!

I'm guessing you don't know his family's financial picture. If you did, you could check to see if he would be eligible for financial aid at schools he would like to attend. Each school has its own calculator on their site to help you figure this out. Not all schools give aid the same. It will tell you what they expect the family to contribute to the total cost.

In terms of other scholarships, the best scholarships to aim for are the ones that the colleges offer. Not all colleges offer them. You can search their individual sites for scholarship info. Also, you can check the stats of the average student there vs. your own stats. Most scholarships go to the students in the upper 25% of the class. There are varying levels of schools, so you have a better chance at getting money by going to a lesser ranked school.

IMO, scholarships that are offered to the general public to compete for are the last thing I would try. Way too many people competing for too few scholarships. Local scholarships are a better route - check with your guidance counselor for info on these.

I've spent lots of time on this topic. My first is going to college in August!

[parafly]

Home - FAFSA on the Web-Federal Student Aid

The student will need to submit a FAFSA form which includes financial information about his parents. Unless the household has substantial savings and/or income, he shouldn't have any issues in obtaining a subsidized loan (no interest or payments until after graduation). The fact that he is claimed as a dependent should not play a role in eligibility.

I would recommend that he strongly considers community college or a public state school to reduce costs and loan amounts as much as possible.

[mogoko]

Shame that uni costs are going up in the Uk

[auron]

If he doesn't have any savings, can he still obtain a loan on his own? He had saved a small amount for school, but she got ahold of it, and it is gone. If you haven't already inferred, she has some big financial issues. I don't want him to pay for her problems.

Less savings and his parents inability to help financially will probably mean he is more likely to qualify for the maximum loan amount. Unless Congress changes the rules for student loans, it will be relatively easy for him to fill out his FASFA and get a student loan (he needs to have an account his mother can't access to direct deposit into). It would be fraud/stealing for his mother to take her son's student loan money.

As I said before though, he needs to think long and hard about what his major path will be and what his employment liklihood/chances are upon graduation. If that path allows for repayment of a modest student loan amount (less than half a year of projected salary in my opinion) then go right ahead.

P.S. I'm sure many people won't agree with this statement. But don't buy into what the college financial aid offices advise they will indebt you to the U.S. Governtment for the rest of your life if they have their way. They are there to process the paperwork, not give financial advice.

[jpg7n16]

So you're helping her boyfriend?


College isn't too big a deal. Don't get attached to the large name schools. Do something in state.

Just in general have him evaluate the price he's paying and what he gets for that.

What degree will he get? What job will that get him? What does that job pay? Can you get the job without a degree? (many times this answer is no) What does that job pay without the degree? Is that excess worth the cost of the degree? Can you start at the company and get tuition reimbursement through work?

When you consider going to a large name school for $20k/year = $80-100k; vs going to a smaller but quality school for $8-10k/year = $32-50k, you can really cut down on costs without giving up much.


I went to a smaller local private school. Cost about $8k/semester. Academic and other scholarships cut that in half. Worked part time for a bank through school. Graduated in 4 years without a ridiculous debt burden. Got a job in the industry I studied for, made more money than I needed. Had enough to pay off all loans in less than a year.

[snafu]

This youngster needs to see the bank manager to learn the details about how his mom was able to access his savings. He needs that information to take the correct steps to avoid that scenario from re occurring at that or any other financial institution. He should ask the bank to recover his stolen funds. It may sound harsh but in the long run, filing a police report for theft might have provide a reality check for mom to change her financial capriciousness.

What will your student do during the summer? He needs to pound the pavement in non school hours seeking a summer job. He can substantially increase his research skills by reviewing sites a high school counselor can offer for grants, scholarships and bursaries. Before taking out loans, he needs to understand the terms and conditions of each loan. Student loans are not written off even in bankruptcy and salary/wages can be garnisheed to satisfy debt.

I agree it most often cost effective to take General Studies at a Community College having 1st verified that the courses are fully transferable to the faculty at the State university. Unless your student anticipates attending a top 10 university or one offering courses not readily available, Human Resource staff rarely reject applicants based on their degree grantor.

It's kind of you to take the time to seek facts on behalf of a student.

[La Profesora]

This youngster needs to see the bank manager to learn the details about how his mom was able to access his savings. He needs that information to take the correct steps to avoid that scenario from re occurring at that or any other financial institution. He should ask the bank to recover his stolen funds. It may sound harsh but in the long run, filing a police report for theft might have provide a reality check for mom to change her financial capriciousness.

What will your student do during the summer? He needs to pound the pavement in non school hours seeking a summer job. He can substantially increase his research skills by reviewing sites a high school counselor can offer for grants, scholarships and bursaries. Before taking out loans, he needs to understand the terms and conditions of each loan. Student loans are not written off even in bankruptcy and salary/wages can be garnisheed to satisfy debt.

I agree it most often cost effective to take General Studies at a Community College having 1st verified that the courses are fully transferable to the faculty at the State university. Unless your student anticipates attending a top 10 university or one offering courses not readily available, Human Resource staff rarely reject applicants based on their degree grantor.

It's kind of you to take the time to seek facts on behalf of a student.

Thank you. He is my daughter's boyfriend, and I know that they could break up at any minute, but I consider this investing in a young man's future no matter what. He is a good kid. We have been discussing community college for at least his first two years, getting a part time job, and applying for as many grants and scholarships as possible. My biggest concern is not letting his mother have access to any funds he may receive. I am trying to help him avoid student loans if possible but if he has to resort to that, I don't want his mother to fritter it away and leave him with the debt.

[La Profesora]

This youngster needs to see the bank manager to learn the details about how his mom was able to access his savings. He needs that information to take the correct steps to avoid that scenario from re occurring at that or any other financial institution. He should ask the bank to recover his stolen funds. It may sound harsh but in the long run, filing a police report for theft might have provide a reality check for mom to change her financial capriciousness.

What will your student do during the summer? He needs to pound the pavement in non school hours seeking a summer job. He can substantially increase his research skills by reviewing sites a high school counselor can offer for grants, scholarships and bursaries. Before taking out loans, he needs to understand the terms and conditions of each loan. Student loans are not written off even in bankruptcy and salary/wages can be garnisheed to satisfy debt.

I agree it most often cost effective to take General Studies at a Community College having 1st verified that the courses are fully transferable to the faculty at the State university. Unless your student anticipates attending a top 10 university or one offering courses not readily available, Human Resource staff rarely reject applicants based on their degree grantor.

It's kind of you to take the time to seek facts on behalf of a student.

He won't do anything about her taking his money. No matter what she does, that is his mother, and he won't do anything to hurt her. That is admirable, but I don't want to give her the opportunity to do this to him again. She has a spending problem and has a great deal of debt. Also, she doesn't seem to understand that what is his is not what is hers. He had thought he was saving, and he had money from grandparents that is no longer there. She told him that she had planned to take out her 401 K to pay him back when he went to college. I explained to him that there would be taxes on her 401 K, and I asked him who would be responsible for her when she retired if she had no retirement savings. That was when he realized he has to do this on his own.