Just Looking for Several Opinions

[longtime_lurker]

Hey guys,

Got some bad news this week about my financial aid. Long story short, I had been getting classified as an independent student only because I'd have my mom apply for the Parent Plus loan and be declined for Ch. 7 BK from 2011. Well, Obama/Dept. of Ed. loosened credit requirements so that they only look 2 years back in determining creditworthiness. I am 42 credits away with a 3.5 GPA and denied any and all federal/state/school aid (mom's partner's income of 85k ruins all need based aid for me and am at dependent student undergraduate loan limit).

I actually tried to get my mom's partner to cosign on a private loan - I was credit approved on my own for 8,000 but she was declined due to DTI (she is cosigner on my mom's PhD loans and has a mortgage).

From my perspective, I have a couple of options thanks to a (potential) opportunity.

1) Suspend enrollment at MSU, go on IBR for loans until age 24, at which time I am an indepedent student regardless of family circumstances and return full-time

2) Attend half-time at MSU using private loan funds for this year...then see if I can get another 8,000 approved for next year, and then finish using federal loans at age 24

3) Attempt to be promoted from Front Desk Manager to Assistant General Manager. Hourly to Salary and salary IS high enough to afford 6 credits/semester out of pocket. This was suggested by our previous AGM (who just was promoted to Director of Sales), so I'm sure I have a shot in getting the job but have to work on letting the GM be okay with scheduling (come in at noon and stay until 9pm 2 nights a week, take all the weekend shifts, etc.) She's always been pretty willing to come to an agreeable compromise, but I would have to convince her and corporate (I think).

I know that this forum isn't usually utilized for these kinds of questions, but I would love to hear other people's feedback and/or suggestions about my predicament. I'm overall pretty frustrated that this happened, and am worried that I'm missing an obvious answer or that I'm not thinking any of my options all the way through. 

[Anonymous]

Can't help you but don't think you would get more replies and assistance in the Student Loans forum?

[longtime_lurker]

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@Anonymous wrote:

Can't help you but don't think you would get more replies and assistance in the Student Loans forum?

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@Anonymous, I posted there once about private lenders and got 0 replies. Soo....I figured I'd have more luck here or in personal finance, lol.

[Anonymous]

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@longtime_lurker wrote:

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@Anonymous wrote:

Can't help you but don't think you would get more replies and assistance in the Student Loans forum?

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@Anonymous, I posted there once about private lenders and got 0 replies. Soo....I figured I'd have more luck here or in personal finance, lol.

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Oh.  Never frequent that forum so I thought there might be more replies there.

[InvincibleSummer3]

That's a rough spot, for sure. How old are you? How long a wait is age 24?

Truthfully, if it were me I'd be inclined to at least try the promotion. But my experience has always been that a management position means the employer expects to be your first priority. If it's possible to juggle school and work, then great. But it's not easy.

I wish you luck though.

[longtime_lurker]

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@InvincibleSummer3 wrote:
That's a rough spot, for sure. How old are you? How long a wait is age 24?

Truthfully, if it were me I'd be inclined to at least try the promotion. But my experience has always been that a management position means the employer expects to be your first priority. If it's possible to juggle school and work, then great. But it's not easy.

I wish you luck though.

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Sorry lol, it would be 2 years - I'm 22 now.

Yeah, I'm thinking that it can't hurt to feel around and see exactly what they're looking for - but your sentiments that in a management position the employer wants to be first priority is my fear AND why I'm hesitent. It's been a little different as an hourly supervisor (but that being said I've covered every shift that they've asked). I know that I'd be able to afford 6 credits/semester if I took the promotion, and in hotels the AGM often works afternoons/evenings/weekends, so I just need to see if they'd be willing to block off 2 mornings a week. 

Thank you for your input, I appreciate it and your thoughts are exactly what I'm looking for

[SCF]

Have you talked to your school's financial aid office about the situation? I don't think that having income should disqualify your family from taking out Parent PLUS loans for you, which would be preferable to private loans in a lot of situations.  https://studentaid.ed.gov/sa/types/loans/plus#how-much-can-i leads me to think that your parents could borrow the difference between your Cost of Attendance and other federal aid received, regardless of their income (because the Expected Family Contribution doesn't appear to be part of that formula).  You should also tell them that this situation may keep you from graduating on-time.  Sometimes institutions have in-house pools of loan funds or grants for these types of challenges, and your fin aid office does have some ability to change the amount or type of federal loans you're offered in unusual circumstances.

If taking on additional federal debt is not possible, I would definitely opt for trying to work and pay as you go.  Ultimately, taking on less debt, taking a little longer to graduate and getting some work experience all at the same time will be positive for your future.

[longtime_lurker]

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@SCF wrote:

Have you talked to your school's financial aid office about the situation? I don't think that having income should disqualify your family from taking out Parent PLUS loans for you, which would be preferable to private loans in a lot of situations.  https://studentaid.ed.gov/sa/types/loans/plus#how-much-can-i leads me to think that your parents could borrow the difference between your Cost of Attendance and other federal aid received, regardless of their income (because the Expected Family Contribution doesn't appear to be part of that formula).  You should also tell them that this situation may keep you from graduating on-time.  Sometimes institutions have in-house pools of loan funds or grants for these types of challenges, and your fin aid office does have some ability to change the amount or type of federal loans you're offered in unusual circumstances.

If taking on additional federal debt is not possible, I would definitely opt for trying to work and pay as you go.  Ultimately, taking on less debt, taking a little longer to graduate and getting some work experience all at the same time will be positive for your future.

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Yes. I went into the office and talked with a senior officer about my situation for over an hour. I was given two "special condition applications" to fill out, but I was told, at least by this officer, that it is unlikely to have a profound impact on my aid offered. I was reading about Parent PLUS loans and it seems that they are in the parent's name only and there is no way to ever transfer them to the student. My mom has told me absolutely not, that she paid for her undergrad on her own and that she would not "bail my *** out"; that I needed to figure this out on my own. She's also near hysterical if I mention taking the promotion, telling me things like how I'll be throwing my life away by accepting the position. I will, when I submit the special condition applications, mention that as it stands right now I won't be able to graduate on time. I did not say that during my previous meeting - thanks for the suggestion!

I really like the idea behind this highlighted senctence. I'm always nervous about the student debt I already have, and know that it will only grow when I go to graduate school. Maybe that's why I'd be interested in taking extra time now to have less debt going into graduate school. The only concern that I have is graduate school acceptance, but I hear that it's not necessarily a negative thing (not graduating in standard timeframe) if you can explain it and demonstrate what you've been doing and what you've learned.

[SCF]

Your mom may not be willing to deal with all of this in a rational manner right now (or ever), but if you can get her calmed down and willing to think the situation through she's trying to put you between a rock and a hard place.  Refusing to take out the Parent Plus loans is certainly her decision, because she is correct that ultimately that debt is hers and cannot be transferred to you.  But if she expects you to pay for college on your own, she needs to be supportive of your efforts to do that.  It's one thing to offer constructive criticism, but it sounds like she's pretty far from that.

Simply telling her that "Hey, this isn't helping, I'm trying to do this on my own and you're telling me the only way I can see to do that will ruin my life.  Can we take a step back here and have a real conversation about how you think I can/should do this?" might be a good idea.  She might not have any help, or she might have a brilliant suggestion (she knows you well I'm guessing, better than the internet and anyone at your school for sure), if you can get it out of her.

[InvincibleSummer3]

With regard to your comment about graduate school acceptance: I used to work in Higher Ed and I can tell you that any grad school program worth it's salt is going to be focused on the quality of your work. Most are not going to even care how long it took you to graduate. More time could also give you time to build relationships with professors who can wrote recommendations and help you find a grad school program that's a great fit. I know things are tense with your mother but I genuinely don't see "racing to the finish" as very beneficial anyway. No one gets extra points for graduating in a particular time frame. You're playing the long game, as well you should be.