Financial Aid --- can anyone get unsubsidized federal loans? Kid's contribution to college costs?

[Anonymous]

I wasn't planning to file the FAFSA because we have far too much in savings to get FA.

However, we have been thinking about what we might tell our first born (going to college in the fall) about what her obligation will be toward college costs. My brother tells his kids that he will pay for 75% of the instate costs and they (his kids) have to come up with 25% via scholarships, work, or loans. The idea being that he wants them to have some "skin in the game." My DD does not have good enough grades to get scholarships. We're actually just happy that she got into college! And that she actually wants to go! (huge steps for her.)

Another friend tells her kids that they have to pay $X per year toward college costs. The amount is something like $5000.

Re: unsubsidized federal loans -- are the offered to anyone? Or do you have to qualify?

We are trying to figure out what our policy is going to be re: contributing to college costs. If anyone can get unsubsidized loans (not private) for $3000, we'd probably be o.k. with that. I'm just not sure we want to say "we'll pay for everything."

Is there an income/savings limit to qualify for unsubsidized loans?

[Anonymous]

Our kids had to pay half. We agree that we wanted them to have skin in the game. We don’t qualify for need based aid. Some of our kids got scholarships. Some worked.

[Anonymous]

We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

[Anonymous]

Anonymous wrote:We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

Hopefully someone is paying the interest on those loans while they're in school

[Anonymous]

Anonymous wrote:

Anonymous wrote:We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

Hopefully someone is paying the interest on those loans while they're in school

If you must know -- yes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

Hopefully someone is paying the interest on those loans while they're in school

Interest doesn’t start running until after graduation. In most situations payment itself was put off a year or more by COViD. Both of my graduate kids are not paying now due to that.

[Anonymous]

Anonymous wrote:I wasn't planning to file the FAFSA because we have far too much in savings to get FA.

However, we have been thinking about what we might tell our first born (going to college in the fall) about what her obligation will be toward college costs. My brother tells his kids that he will pay for 75% of the instate costs and they (his kids) have to come up with 25% via scholarships, work, or loans. The idea being that he wants them to have some "skin in the game." My DD does not have good enough grades to get scholarships. We're actually just happy that she got into college! And that she actually wants to go! (huge steps for her.)

Another friend tells her kids that they have to pay $X per year toward college costs. The amount is something like $5000.

Re: unsubsidized federal loans -- are the offered to anyone? Or do you have to qualify?

We are trying to figure out what our policy is going to be re: contributing to college costs. If anyone can get unsubsidized loans (not private) for $3000, we'd probably be o.k. with that. I'm just not sure we want to say "we'll pay for everything."

Is there an income/savings limit to qualify for unsubsidized loans?

We don't subscribe to this theory. As a family, we take care of one another in various ways, including financially. Our kids are careful with their own money and are also careful with ours - we have seen ample evidence of this over many years. Therefore, we don't need for them to be responsible for college tuition, room, or board, for which we have saved for a few decades. It is important to us that our DCs graduate without debt so that they can begin saving, investing, and moving forward in general with their adult lives unhindered by financial obligations.

They do work year-round to pay for their own books and miscellaneous expenses, for which they are responsible.

Our

[Anonymous]

We had our children responsible for their spending money. We paid for tuition, R&B, books and expenses related to classes. My parents did the same and I saw it as a debt I owed to the next generation. Our children understand this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

Hopefully someone is paying the interest on those loans while they're in school

Interest doesn’t start running until after graduation. In most situations payment itself was put off a year or more by COViD. Both of my graduate kids are not paying now due to that.

That is 100% false, it’s literally the difference between subsidized and in subsidized loans

https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

[Anonymous]

Anyone else want to chime in with their family policy on what kids are expected to contribute to their college costs?

I'm trying to figure out what is reasonable, and how it works out in practice over 4 yrs.

[Anonymous]

I don't really have the money to pay 4 years of in state but don't qualify for financial aid. Long story. Kid is taking out the unsubsidized loan every year. It will be about 30K to pay off, but I think he can do it. In addition, he works in summer and that money goes towards life--tuition, spending money, travel, car, whatever. Our finances are intricately linked until he is done with college. We are all doing what we can, and nobody is deprived.

[Anonymous]

Interest starts to accrue on unsubsidized loans when they are disbursed.

[Anonymous]

We pay full tuition, RB, books and they are responsible for any extras or spending money. We have money saved, and anything remaining is theirs. One child chose an expensive SLAC, the other in state public and got a scholarship so they will have wildly different amounts remaining. Both know all about this and about each others situation. Both are at their first choice schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We filed the FAFSA specifically for the unsubsidized student loans. (We do not qualify for any other type of financial aid.)

Each kid is taking the maximum amount of unsubsidized student loans ($5500 for freshman, $6500 for sophomore, and $7500 for junior and senior years). We ask that they apply the loans towards tuition, and we pay the balance.

We are paying for a portion of tuition, fees, plus room and board. Each kid is earning money to pay for books and supplies, transportation, and miscellaneous expenses.

Hopefully someone is paying the interest on those loans while they're in school

Interest doesn’t start running until after graduation. In most situations payment itself was put off a year or more by COViD. Both of my graduate kids are not paying now due to that.

OMG go sit down and be quiet. You really have no business giving advice here.

[Anonymous]

If you have the money pay. Loans mean nothing as they are not paying now. Our rule is at 15 you get a job or internship summers. If paid, money goes into college fund.