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Best Course of Action?!?

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cmthomas06
Regular Contributor

Best Course of Action?!?

Hello all Smiley Happy 

 

I am entering my 5th (and final!) year of college and am wondering what I should do to pay my daunting bill. I currently have 26k in federal loans and am only eligible for another 5k. My parents and I make too much (really, its no where near enough) to qualify for grants and Im considered "dependent" because Im 22, even though I live on my own. I have paid ~$1800 per semester out of pocket for the past 3 years, and tuition and fees have continues to rise. Well, I can no longer afford to pay and I don't want my parents to have to struggle so I can complete my schooling. My mother is also getting her degree, so they have their own bills to worry about. 

 

I have tried the Financial Aid office and they can't do anything for me. I have 1 private loan through Chase for 3k and was thinking about getting another private loan for 5k and combing it with my entire savings so I can cover both semesters and pay off my car loan. 

 

I figured this would be a semi decent course of action so everything is paid for and I no longer have to worry about a car payment. The new private loan would be in deferment for only 1 year, so it shouldn't accrue too much interest (hopefully!). My only worry is that when I graduate I will be stuck with monthly payments I wouldn't be able to afford. Im fairly credit savvy, but have very limited experience with installment loans.

 

Any thoughts or advice would be greatly appreciated. Do I have any other viable options? 

Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Message 1 of 6
5 REPLIES 5
SCF
Valued Contributor

Re: Best Course of Action?!?

If your parents don't provide you any support, you could talk to the Financial Aid office about being declared an independent student.  I remember it being a fairly narrow set of guidelines, but it might be worth looking into in your case if it would improve your aid package.  A big factor will be if your parents are still claiming you on their taxes, if they are, I'm not sure you can be declared independent.

 

The best advice I can give is to take out the smallest amount of loans possible, and avoid private loans if there is any way to do that.  You've stated the reason yourself, you might have payments you can't afford, and private student loans don't have the same protections as federal loans if you need help or more time to repay them.  Is there any way you can get a part-time job to help with expenses?  Take a semester off to earn money working full-time and then complete your schooling over the Spring and Summer terms?  Could you take some of your remaining courses at a cheaper institution?  Some schools will allow you to take courses online, or through a local community college, and they cost less.

Message 2 of 6
cmthomas06
Regular Contributor

Re: Best Course of Action?!?

I will definitely look into being declared independent. My parents have not claimed me on their taxes for the past 3 years now. I work near full time (32-36 hrs) and live on my own.

Thanks for the tips!
Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Message 3 of 6
treesocute
New Visitor

Re: Best Course of Action?!?

My daughter tried to declare independence but fasfa decline the request. My daughter is 21,  she pays all of her own bills, car note ,rent works two jobs and gets little to no financial assistant from me. For this reason she carried herself on her taxes . The response we received from fasfa is that there is no way she could be doing this on her own. The only way to declare dependency is if her parents were dead or in jail. Even if we refuse to sign the fasfa paperwork. One of the reps told her if she had a baby or married, (yea you get rewarded for being an unwed mother) then she can declare dependency. Or wait until she turns 24.Believe me we tried every avenue to get around it. But if you find a loop whole , please advise . Good luck.

Message 4 of 6
cmthomas06
Regular Contributor

Re: Best Course of Action?!?

I find it absolutely ridiculous how hard they make it to get an education. Its absolutely disgusting that hard-working middle class citizens experience the most difficulties. Good luck to you and your daughter! 

Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Message 5 of 6
bahbahd
Established Contributor

Re: Best Course of Action?!?

There is almost no chance you can be declaired independent right now. You need to just wait till you are 24, get married, etc. http://studentaid.ed.gov/fafsa/filling-out/dependency  No, it is not fair. Yes, they make it hard to prevent people from abusing it.

 

I'd do whatever I could to avoid private student loans. Had I known what I know now, I would have just married a friend of mine when I was 19. I know people who did just that for this exact reason.

 

 

Message 6 of 6
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