Pay for college with loans or cash...

[Anonymous]

^above from the OP.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If its niece's trust, why wouldn't niece use that? Loans suck! They have very high interest rates (ours were all 6.5%)

Interest does not accrue on a student loan during the time they are in school. So you should max out loans as much as possible during that time. If you kid lands a govt or non profit job, sign up for the loan forgiveness program, which has income based repayment and a 10 year forgiveness option. They might pay $300 a mos for 10 years and then have the balance written off completely if they stay in govt work. If they don't take that government job, you can always pay off the loan as soon as they are out of college.

The interest accruing statement is only true on subsidized loans... And those are limited.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If its niece's trust, why wouldn't niece use that? Loans suck! They have very high interest rates (ours were all 6.5%)

Interest does not accrue on a student loan during the time they are in school. So you should max out loans as much as possible during that time. If you kid lands a govt or non profit job, sign up for the loan forgiveness program, which has income based repayment and a 10 year forgiveness option. They might pay $300 a mos for 10 years and then have the balance written off completely if they stay in govt work. If they don't take that government job, you can always pay off the loan as soon as they are out of college.

The interest accruing statement is only true on subsidized loans... And those are limited.

+1. All of mine accrued interest for all 4 years I was in undergrad. When I got out, college was already more expensive than the initial loans. And we chose fed government jobs. There was no loan forgiveness. I've seen that with friends who chose to be doctors in under served communities, but not fed gov workers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Look for cheaper schools.

That didn't help at all and didn't answer the question. Not interested in going to a cheaper school.

IF, and only IF, she plans on taking a govt or non profit job, finance everything. She will then be eligible for income based repayments (10% of income) and 100% forgiveness in 10 years. She could easily come out 50- 75K ahead doing this.

Thank you this helps. Niece is going to school either using trust money or loans. She is not considering going to a cheaper school.

And to the PP who wants the Audi, hey if you got the credit go for it! YOLO!

What is wrong with cheaper schools? You seem very defensive, OP.

I'm not defensive, and nothing is wrong with cheaper schools if you want to go to cheaper schools. But going to a cheaper school was not my question or my issue. She has chosen her school, was accepted and decided that's where she wants to go. She has decided that she is going to do whatever it takes to go to this school, be it using loans or all of her trust money. Therefore talking to her about going to a cheaper school is of little importance to her. Me and my brother are just trying to figure out which to use. Loans or the cash.

She want to be a doctor, so she knows she has a long wrong ahead of her. She is steadfast on this school.

Medical school costs about 100k. She wants to blow 120k on an UNDERGRAD school?? I had 150k I debt from professional school only, none from undergrad. I pay about a thousand dollars a month for school loans. And that's why I don't have my Audi.

I sincerely hope you are actually the neice and not the aunt. YOLO indeed.

[Anonymous]

Oh and don't forget she has to do a year of an internship and 3-4 years residency before she can rake in the big money of a specialist....they barely get survival wages as an Intern.

[Anonymous]

Extremely naive and uninformed aunt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Look for cheaper schools.

That didn't help at all and didn't answer the question. Not interested in going to a cheaper school.

IF, and only IF, she plans on taking a govt or non profit job, finance everything. She will then be eligible for income based repayments (10% of income) and 100% forgiveness in 10 years. She could easily come out 50- 75K ahead doing this.

Thank you this helps. Niece is going to school either using trust money or loans. She is not considering going to a cheaper school.

And to the PP who wants the Audi, hey if you got the credit go for it! YOLO!

What is wrong with cheaper schools? You seem very defensive, OP.

I'm not defensive, and nothing is wrong with cheaper schools if you want to go to cheaper schools. But going to a cheaper school was not my question or my issue. She has chosen her school, was accepted and decided that's where she wants to go. She has decided that she is going to do whatever it takes to go to this school, be it using loans or all of her trust money. Therefore talking to her about going to a cheaper school is of little importance to her. Me and my brother are just trying to figure out which to use. Loans or the cash.

She want to be a doctor, so she knows she has a long wrong ahead of her. She is steadfast on this school.

Medical school costs about 100k. She wants to blow 120k on an UNDERGRAD school?? I had 150k I debt from professional school only, none from undergrad. I pay about a thousand dollars a month for school loans. And that's why I don't have my Audi.

I sincerely hope you are actually the neice and not the aunt. YOLO indeed.

OP here. No. I'm just the aunt. Emphasis on the "just"part. My niece has made up her mind and unfortunately there is no changing it. My brother has not been very helpful in the college selection process and I've tried to somewhat stay out of it because of his parenting style. (He's the "She's my daughter, MYOB!" type). I don't get along with my x-SIL so I couldn't call her to engage in this process either--she also didn't volunteer to help. I completely agree in what you said above. I can't believe my brother did not talk to her at all about considering more reasonably priced schools. Every school she applied to is out of state and at least 30K. Did not apply to any in-state schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Look for cheaper schools.

That didn't help at all and didn't answer the question. Not interested in going to a cheaper school.

IF, and only IF, she plans on taking a govt or non profit job, finance everything. She will then be eligible for income based repayments (10% of income) and 100% forgiveness in 10 years. She could easily come out 50- 75K ahead doing this.

Thank you this helps. Niece is going to school either using trust money or loans. She is not considering going to a cheaper school.

And to the PP who wants the Audi, hey if you got the credit go for it! YOLO!

What is wrong with cheaper schools? You seem very defensive, OP.

I'm not defensive, and nothing is wrong with cheaper schools if you want to go to cheaper schools. But going to a cheaper school was not my question or my issue. She has chosen her school, was accepted and decided that's where she wants to go. She has decided that she is going to do whatever it takes to go to this school, be it using loans or all of her trust money. Therefore talking to her about going to a cheaper school is of little importance to her. Me and my brother are just trying to figure out which to use. Loans or the cash.

She want to be a doctor, so she knows she has a long wrong ahead of her. She is steadfast on this school.

Medical school costs about 100k. She wants to blow 120k on an UNDERGRAD school?? I had 150k I debt from professional school only, none from undergrad. I pay about a thousand dollars a month for school loans. And that's why I don't have my Audi.

I sincerely hope you are actually the neice and not the aunt. YOLO indeed.

OP here. No. I'm just the aunt. Emphasis on the "just"part. My niece has made up her mind and unfortunately there is no changing it. My brother has not been very helpful in the college selection process and I've tried to somewhat stay out of it because of his parenting style. (He's the "She's my daughter, MYOB!" type). I don't get along with my x-SIL so I couldn't call her to engage in this process either--she also didn't volunteer to help. I completely agree in what you said above. I can't believe my brother did not talk to her at all about considering more reasonably priced schools. Every school she applied to is out of state and at least 30K. Did not apply to any in-state schools.

Uh I thought the x-SIL passed away? Or did you mean your neice's aunt that controls the trust?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Look for cheaper schools.

That didn't help at all and didn't answer the question. Not interested in going to a cheaper school.

IF, and only IF, she plans on taking a govt or non profit job, finance everything. She will then be eligible for income based repayments (10% of income) and 100% forgiveness in 10 years. She could easily come out 50- 75K ahead doing this.

Thank you this helps. Niece is going to school either using trust money or loans. She is not considering going to a cheaper school.

And to the PP who wants the Audi, hey if you got the credit go for it! YOLO!

What is wrong with cheaper schools? You seem very defensive, OP.

I'm not defensive, and nothing is wrong with cheaper schools if you want to go to cheaper schools. But going to a cheaper school was not my question or my issue. She has chosen her school, was accepted and decided that's where she wants to go. She has decided that she is going to do whatever it takes to go to this school, be it using loans or all of her trust money. Therefore talking to her about going to a cheaper school is of little importance to her. Me and my brother are just trying to figure out which to use. Loans or the cash.

She want to be a doctor, so she knows she has a long wrong ahead of her. She is steadfast on this school.

Medical school costs about 100k. She wants to blow 120k on an UNDERGRAD school?? I had 150k I debt from professional school only, none from undergrad. I pay about a thousand dollars a month for school loans. And that's why I don't have my Audi.

I sincerely hope you are actually the neice and not the aunt. YOLO indeed.

med school is costing us about 70k per year right now.

[Anonymous]

Anonymous wrote:Extremely naive and uninformed aunt.

That isn't fair. The aunt s asking.

Aunt, who is signing these loans? It had better not be you. If this girl really only has $100k plus loans available for undergrad +med school, she will find the path to her MD to be very long and hard. Loans are expensive.

[Anonymous]

Uh I thought the x-SIL passed away? Or did you mean your neice's aunt that controls the trust?


From OP-
Yes, I mean my niece's other aunt that control's the trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Extremely naive and uninformed aunt.

That isn't fair. The aunt s asking.

Aunt, who is signing these loans? It had better not be you. If this girl really only has $100k plus loans available for undergrad +med school, she will find the path to her MD to be very long and hard. Loans are expensive.

Aunt Op here. To some degree I am uniformed and naive about the college application process. I don't have college aged children and I graduated college some 20 years ago. So I don't know the process today. I am trying to investigate and be helpful to my niece but honestly my brother basically told me to butt out. My niece is coming to me because her dad (my brother) can be a real ignorant asshat. The aunt that controls the trust lives 1000 miles away and hasn't had much contact with niece since her sister died 6 years ago. Actually niece just found out about the trust last week after I forced the issue and told niece to call other aunt to get details. And now that asshat brother knows about the 100k, he doesn't even what to contribute the 10k he supposedly has. She has to decide on a school by 5/1. She applied to no in-state schools.

[Anonymous]

OP Aunt here. Bumping my thread in case anyone else has some advice. Niece decided on the out of state school. Costing her 34k for the first year. I live in the state of this school. Can she become an in-state resident by living with my family? Thus being an in-state student for her sophmore year? And she really will be living with me, it will not be fraud. He father (my brother moved back to our home place (about 1000 miles away) and niece will not be traveling there for school breaks at all. We are setting up space for her in our home and she has already changed her address to our home. When dad moved back to home state, she moved in with us and will be staying with us until we take her to college.

[Anonymous]

Anonymous wrote:OP Aunt here. Bumping my thread in case anyone else has some advice. Niece decided on the out of state school. Costing her 34k for the first year. I live in the state of this school. Can she become an in-state resident by living with my family? Thus being an in-state student for her sophmore year? And she really will be living with me, it will not be fraud. He father (my brother moved back to our home place (about 1000 miles away) and niece will not be traveling there for school breaks at all. We are setting up space for her in our home and she has already changed her address to our home. When dad moved back to home state, she moved in with us and will be staying with us until we take her to college.

Every state has different laws for what it requires to set up residency. I know anecdotally that Idaho makes it pretty easy, California makes it very hard, and Maryland is somewhere in between. I think you're going to have to investigate your own state's policy, and **maybe** someone in the school's financial aid office will help (though unlikely because publics **love** out of state tuition and don't have a lot of incentive to help students set up residency).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Look for cheaper schools.

That didn't help at all and didn't answer the question. Not interested in going to a cheaper school.

IF, and only IF, she plans on taking a govt or non profit job, finance everything. She will then be eligible for income based repayments (10% of income) and 100% forgiveness in 10 years. She could easily come out 50- 75K ahead doing this.

Thank you this helps. Niece is going to school either using trust money or loans. She is not considering going to a cheaper school.

And to the PP who wants the Audi, hey if you got the credit go for it! YOLO!

What is wrong with cheaper schools? You seem very defensive, OP.

+100
Apparently, niece wants what she wants, regardless of financial circumstances and aunt is just fine with that. What a waste of advice.