Borrowing from Federal Loans for college
December 28, 2015 9:36 PM Subscribe
I have a question about how much to borrow for federal direct loans/financial aid. Not sure whether or not I have enough for living expenses and college.
Anyways, I'm the first person in my immediate to attend college in my family and my relatives all are much older than me. Also, I've been to the financial aid office but they can't provide any counseling beyond what I found online on the official sites. I'm located in NY, USA.
Since it's my 2nd year I can borrow up to $4,500 for a school year via federal direct loans. I've applied for both TAP/FAFSA which are still processing atm. However, I already owe $5,000-$6,000. A basic est for living expenses including rent would be $1,500. Should I consider borrowing the max amount for student loans? Is there anything I might be overlooking with financial aid?
FWIW: I have little to no savings and have tried cutting down costs but it's still pretty expensive in NYC. Currently still unemployed for the last few months and job prospects are very, very low with my limited skills.
My main goal would be to avoid homelessness/starvation and increasing debt for now. I've already applied to SNAP/other public programs. Thanks.
Anyways, I'm the first person in my immediate to attend college in my family and my relatives all are much older than me. Also, I've been to the financial aid office but they can't provide any counseling beyond what I found online on the official sites. I'm located in NY, USA.
Since it's my 2nd year I can borrow up to $4,500 for a school year via federal direct loans. I've applied for both TAP/FAFSA which are still processing atm. However, I already owe $5,000-$6,000. A basic est for living expenses including rent would be $1,500. Should I consider borrowing the max amount for student loans? Is there anything I might be overlooking with financial aid?
FWIW: I have little to no savings and have tried cutting down costs but it's still pretty expensive in NYC. Currently still unemployed for the last few months and job prospects are very, very low with my limited skills.
My main goal would be to avoid homelessness/starvation and increasing debt for now. I've already applied to SNAP/other public programs. Thanks.
Are the loans subsidized (meaning that no interest accrues as long as you're in school) or unsubsidized (meaning that the interest starts piling up on the day you cash the check)? Because if they're subsidized, you should be able to borrow the max, stick to a budget and spend as little as possible, and then immediately at the end of the semester use whatever money you have left to pay down your balance, without accruing any interest on it. Double check that, but I think that's how it works. That will prevent you from ending up in an emergency where you need cash but don't have it, but also limit the amount of debt you'll have at graduation.
Also, see if your university has resources specifically for first-generation college students. Even a student mentoring group or something would be a helpful resource for you, especially if your college administration is unhelpful. But a number of schools these days have someone in admissions or counseling or some other administrative department whose job is to help folks like you navigate these types of issues.
posted by decathecting at 9:54 PM on December 28, 2015 [3 favorites]
Also, see if your university has resources specifically for first-generation college students. Even a student mentoring group or something would be a helpful resource for you, especially if your college administration is unhelpful. But a number of schools these days have someone in admissions or counseling or some other administrative department whose job is to help folks like you navigate these types of issues.
posted by decathecting at 9:54 PM on December 28, 2015 [3 favorites]
Response by poster: SMPA: No plans for grad school. I will be using for both if it enough since rent is $500 but I figured the remaining (reduced SNAP food) and then I'll need to just cover transportation/materials. I do have approx $5,000 credit debt due to relying on it for living expenses for the last 7-8 months (I know).
decathecting: They offer both kinds of loans. I've heard of private loans but I figured it'd be closer to people who were pursuing medical school or other specialized places. I did ask the Student Advising Center but they pointed that I should ask all payment questions to Financial Aid. I think there's a Student Union? I thought they organized clubs/activities on campus. I'll check out Admissions though.
posted by chrono_rabbit at 10:54 PM on December 28, 2015
decathecting: They offer both kinds of loans. I've heard of private loans but I figured it'd be closer to people who were pursuing medical school or other specialized places. I did ask the Student Advising Center but they pointed that I should ask all payment questions to Financial Aid. I think there's a Student Union? I thought they organized clubs/activities on campus. I'll check out Admissions though.
posted by chrono_rabbit at 10:54 PM on December 28, 2015
Grants can help. Make a friend in the Financial Aid office because they can hook you up with all the opportunities. Just keep pestering them until someone offers to help. They're the only ones who know all the funding sources.
Pell Grant - For the 2015–16 award year (July 1, 2015, to June 30, 2016), the maximum award is $5,775.
Depending on your state you may not be eligible for SNAP while a full time student unless you are also working 30 hours a week at a job as well. YMMV
Good luck!
posted by irisclara at 11:07 PM on December 28, 2015 [1 favorite]
Pell Grant - For the 2015–16 award year (July 1, 2015, to June 30, 2016), the maximum award is $5,775.
Depending on your state you may not be eligible for SNAP while a full time student unless you are also working 30 hours a week at a job as well. YMMV
Good luck!
posted by irisclara at 11:07 PM on December 28, 2015 [1 favorite]
Keep trying to get steady work. Barrista, bartending, whatever. Better would be something like customer service on swing shift or night shift at a company that offers Tuition Aid. That's how I finished my undergrad (and how I funded my Masters.)
Do whatever you can to NOT get into debt. Student Loans are the next financial catastrophe waiting to happen to our economy and in very few cases does it pay to get deeply in debt to finish college.
Another option is to exhaust the possibility for scholarships. There are all kinds of weird scholarships out there and if you apply for enough of them it can take the pressure off.
Another option is through family members. If a family member is a union member or works for a large corporation, chances are that entity offers a scholarship to extended family.
This sucks but you're going to have to minor in Financial Aid. You'll have to read up on it, and grants and scholarships and basically YOU'LL have a second/third job in this subject. But, I can't think of anything more worthwhile.
The biggest blessing in my life was having no student loans to pay back.
posted by Ruthless Bunny at 4:29 AM on December 29, 2015 [1 favorite]
Do whatever you can to NOT get into debt. Student Loans are the next financial catastrophe waiting to happen to our economy and in very few cases does it pay to get deeply in debt to finish college.
Another option is to exhaust the possibility for scholarships. There are all kinds of weird scholarships out there and if you apply for enough of them it can take the pressure off.
Another option is through family members. If a family member is a union member or works for a large corporation, chances are that entity offers a scholarship to extended family.
This sucks but you're going to have to minor in Financial Aid. You'll have to read up on it, and grants and scholarships and basically YOU'LL have a second/third job in this subject. But, I can't think of anything more worthwhile.
The biggest blessing in my life was having no student loans to pay back.
posted by Ruthless Bunny at 4:29 AM on December 29, 2015 [1 favorite]
Somewhere on your schools website there is an estimated cost to attend number - I believe it's required by law now. It factors living expenses, books, etc. It's just an estimate, but should give you a reasonable idea of how much 9 months of going to school will really cost.
posted by COD at 4:52 AM on December 29, 2015 [3 favorites]
posted by COD at 4:52 AM on December 29, 2015 [3 favorites]
Borrow enough that you don't need to put costs on a credit card. You could ask in /r/StudentLoans. They're not nice but they are informed.
posted by DarlingBri at 7:21 AM on December 29, 2015
posted by DarlingBri at 7:21 AM on December 29, 2015
This thread is closed to new comments.
posted by SMPA at 9:52 PM on December 28, 2015 [1 favorite]