Comments on: Student loans and financial aid: How to save $23,000 http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sun, 12 Feb 2012 18:46:58 +0000 hourly 1 http://wordpress.org/?v= By: Heuristic http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123495 Heuristic Tue, 11 May 2010 00:41:24 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123495 I agree with Sydni and Mr. Jay- middle class students are boned here. My father makes around $100k a year, but between loans, food, car payments, taxes, retirement, medical bills for my aging grandparents, insurance, job changes, and saving for my sister's upcoming college needs $14k a year is a lot to ask for. They're pulling from retirement funds to do it, and I am paying for housing and food. I worked 20 hours a week while at (a top 20) school taking max credits so that I can hopefully graduate with only $8k in student loans. I just finished my second year, and whether I need more in loans or not is dependent on whether I can get a paying internship or co-op next summer. Because of work I struggled my way through both semesters and in this last semester I had between 15 and 80 hours of homework a week (trust me, I counted) so my grades are shit, and at the moment I do not qualify for the vast majority of internships or scholarships and finding work that would help me get a job or into grad school is nearly impossible. Anyway, the point is that I'm one of the people in the middle and I've been forgotten (or ignored, not sure what the difference is). I've never gotten financial aid through FAFSA except after my dad lost his job and made half of what he normally makes, and even then they gave me $5000 in loans and $2500 in work study, and none of that went to my parents. I'd like to hear your response to people like Mr. Jay, Sydni, and I. I agree with Sydni and Mr. Jay- middle class students are boned here. My father makes around $100k a year, but between loans, food, car payments, taxes, retirement, medical bills for my aging grandparents, insurance, job changes, and saving for my sister’s upcoming college needs $14k a year is a lot to ask for. They’re pulling from retirement funds to do it, and I am paying for housing and food. I worked 20 hours a week while at (a top 20) school taking max credits so that I can hopefully graduate with only $8k in student loans. I just finished my second year, and whether I need more in loans or not is dependent on whether I can get a paying internship or co-op next summer. Because of work I struggled my way through both semesters and in this last semester I had between 15 and 80 hours of homework a week (trust me, I counted) so my grades are shit, and at the moment I do not qualify for the vast majority of internships or scholarships and finding work that would help me get a job or into grad school is nearly impossible.

Anyway, the point is that I’m one of the people in the middle and I’ve been forgotten (or ignored, not sure what the difference is). I’ve never gotten financial aid through FAFSA except after my dad lost his job and made half of what he normally makes, and even then they gave me $5000 in loans and $2500 in work study, and none of that went to my parents. I’d like to hear your response to people like Mr. Jay, Sydni, and I.

]]> By: Stefan http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123278 Stefan Sun, 02 May 2010 02:01:14 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123278 I also find this post offensive in ways. I just graduated from the University of West Florida today and can testify that a small, not high ranking university, is better than a Chinese prison. While many of the points made in the article may apply to some, it may have a discouraging effect on people who cannot get into a big ten school. Students who can get accepted to a good private school should go for it, you are right about that, but not getting into a school should never discourage people from making the best out of what they can do. I also find this post offensive in ways. I just graduated from the University of West Florida today and can testify that a small, not high ranking university, is better than a Chinese prison. While many of the points made in the article may apply to some, it may have a discouraging effect on people who cannot get into a big ten school. Students who can get accepted to a good private school should go for it, you are right about that, but not getting into a school should never discourage people from making the best out of what they can do.

]]> By: Public School Student http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123267 Public School Student Thu, 29 Apr 2010 04:25:08 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123267 Mr Jay and Nmls hit it straight on the head. I'm guessing the author used to be dirt poor. However, if both of your parents graduated college and command middle-class salaries, you'll get no aid. My older sibling attended Stanford, and my parents basically emptied the college fund (I was left with nothing) and a good portion of their retirement fund to put him through four years of Stanford education. Now, I am currently attending a public school on a full tuition scholarship. My parents told me they would be willing to spend money on my education in a heartbeat, but I'm not willing to put them through any additional suffering. Do not be fooled by this post. Mr Jay and Nmls hit it straight on the head. I’m guessing the author used to be dirt poor. However, if both of your parents graduated college and command middle-class salaries, you’ll get no aid.

My older sibling attended Stanford, and my parents basically emptied the college fund (I was left with nothing) and a good portion of their retirement fund to put him through four years of Stanford education. Now, I am currently attending a public school on a full tuition scholarship. My parents told me they would be willing to spend money on my education in a heartbeat, but I’m not willing to put them through any additional suffering.

Do not be fooled by this post.

]]> By: ben http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123249 ben Tue, 27 Apr 2010 04:39:50 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123249 I resonate with much of your post Ramit. I came from a small rural community where most assumed I must be rich because I applied to Duke. In fact, Duke's generous financial aid package made my costs cheaper than any of the in-state schools and included NO loans. My parents gracious agreed to bear the burden of the remaining costs (6-digit thousands per year), and it was a stretch, but they were happy and even proud to do it. I'm thankful to the generous donors to Duke who may my attendance possible, my faithful and giving parents, and my education at a great University. Thanks for the post. I resonate with much of your post Ramit. I came from a small rural community where most assumed I must be rich because I applied to Duke. In fact, Duke’s generous financial aid package made my costs cheaper than any of the in-state schools and included NO loans. My parents gracious agreed to bear the burden of the remaining costs (6-digit thousands per year), and it was a stretch, but they were happy and even proud to do it. I’m thankful to the generous donors to Duke who may my attendance possible, my faithful and giving parents, and my education at a great University. Thanks for the post.

]]> By: Nmls http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123247 Nmls Tue, 27 Apr 2010 00:27:15 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123247 I must disagree. The current financial aid/ need-based scholarship system mostly puts pressure on families who can only pay for such a college if they raid the college funds of their other children, stop eating, sell the house, etc., and other insane measures. I got accepted into tier 1 colleges, but the financial support was minimal, and I couldn't afford to go. I come from a high school where it's routine for students to rejoice at acceptances from ivy leagues, and then fall into a depressed period when they realize they can't afford to go. I must disagree. The current financial aid/ need-based scholarship system mostly puts pressure on families who can only pay for such a college if they raid the college funds of their other children, stop eating, sell the house, etc., and other insane measures. I got accepted into tier 1 colleges, but the financial support was minimal, and I couldn’t afford to go. I come from a high school where it’s routine for students to rejoice at acceptances from ivy leagues, and then fall into a depressed period when they realize they can’t afford to go.

]]> By: Kym B http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123239 Kym B Sun, 25 Apr 2010 19:47:24 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123239 While your post raises some interesting ideas and thoughts about the current generation in college or about to enter college, I still believe it's not quite as easy as you make it seem to be. First, you focus more on the "best" schools - Ivy Leagues that have enough in their endowment to pay everyone's tuition for all 4 years and still have money left over. Sure, maybe for the people applying (and who can actually get in) to those colleges it's easier to get financial aid because the school has enough money to supply it, but what about the smaller colleges, the public universities, and the schools that don't have quite as much money (in all honesty, the colleges that most of America goes to)? Those colleges are not willing to pay for most of a student's tuition no matter how much they "want them". "A 2006 study of major research universities found that they spent $171 million on aid to the poorest students—those whose families made less than $20,000 a year. At the same time, they spent $257 million on financial aid for the richest students, from families earning more than $100,000 a year." In this study nothing is mentioned about the middle class - where most of America falls. Perhaps you just didn't publish it, but I think it's important for people to realize that the middle classes do not get as much help as they need. If you're poor scholarships come flooding your way-schools want the kids who can potentially have the "rags-to-riches" success stories. If you're in the upper class either a) your family can already afford to send you to college, or b) colleges give you money since they see you as a potential donator once you graduate, and meaning they want you now, so later when you have even more money they will be getting donations from you. But then there's the middle class; their parents do not make enough to become big time donators in the future, but the government is under the impression that their parents make enough money to be able to afford 4 years of college. Sure this could be true if they don’t eat for the next 4 years and live in a box, but to be able to live comfortably the middle classes need the financial help. “Tuition should be one of the last decisions you make” Absolutely wrong. Tuition is usually the deciding factor for a college decision. No matter what anyone says, cost DOES matter and it DOES make a huge difference. Especially when looking for an undergrad education, the school a person goes to does not matter as much so it doesn’t make sense to go into a lot of debt when it’s really grad school that means the most to employers. So why should people put themselves in tons of debt for a bachelors degree? Maybe when you went to college getting financial aid was easy and applying for a few scholarships guaranteed minimal fees while in college, but times are different now. With the current state of the economy scholarship, grants, and loans funds are way down, so trying to figure out how to pay for college is a nightmare for some families. Students dread receiving their financial aid packages because they know it won’t hold good news. Maybe instead of people saying students should just look harder for more scholarships, etc. and that if a college really wanted them they would give them as much money they need (which is false), colleges and universities should actually lower their tuition so people could afford it without all the unnecessary stress of student debt. While your post raises some interesting ideas and thoughts about the current generation in college or about to enter college, I still believe it’s not quite as easy as you make it seem to be. First, you focus more on the “best” schools – Ivy Leagues that have enough in their endowment to pay everyone’s tuition for all 4 years and still have money left over. Sure, maybe for the people applying (and who can actually get in) to those colleges it’s easier to get financial aid because the school has enough money to supply it, but what about the smaller colleges, the public universities, and the schools that don’t have quite as much money (in all honesty, the colleges that most of America goes to)? Those colleges are not willing to pay for most of a student’s tuition no matter how much they “want them”.
“A 2006 study of major research universities found that they spent $171 million on aid to the poorest students—those whose families made less than $20,000 a year. At the same time, they spent $257 million on financial aid for the richest students, from families earning more than $100,000 a year.”
In this study nothing is mentioned about the middle class – where most of America falls. Perhaps you just didn’t publish it, but I think it’s important for people to realize that the middle classes do not get as much help as they need. If you’re poor scholarships come flooding your way-schools want the kids who can potentially have the “rags-to-riches” success stories. If you’re in the upper class either a) your family can already afford to send you to college, or b) colleges give you money since they see you as a potential donator once you graduate, and meaning they want you now, so later when you have even more money they will be getting donations from you. But then there’s the middle class; their parents do not make enough to become big time donators in the future, but the government is under the impression that their parents make enough money to be able to afford 4 years of college. Sure this could be true if they don’t eat for the next 4 years and live in a box, but to be able to live comfortably the middle classes need the financial help.
“Tuition should be one of the last decisions you make”
Absolutely wrong. Tuition is usually the deciding factor for a college decision. No matter what anyone says, cost DOES matter and it DOES make a huge difference. Especially when looking for an undergrad education, the school a person goes to does not matter as much so it doesn’t make sense to go into a lot of debt when it’s really grad school that means the most to employers. So why should people put themselves in tons of debt for a bachelors degree?
Maybe when you went to college getting financial aid was easy and applying for a few scholarships guaranteed minimal fees while in college, but times are different now. With the current state of the economy scholarship, grants, and loans funds are way down, so trying to figure out how to pay for college is a nightmare for some families. Students dread receiving their financial aid packages because they know it won’t hold good news. Maybe instead of people saying students should just look harder for more scholarships, etc. and that if a college really wanted them they would give them as much money they need (which is false), colleges and universities should actually lower their tuition so people could afford it without all the unnecessary stress of student debt.

]]> By: Guy G. http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123115 Guy G. Sat, 17 Apr 2010 15:44:10 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123115 Hey, I think the problem with many young people getting ready for school is that they are sometimes lazy, but mostly so focused on all the things they're doing just trying to get accepted, that they don't even take the time to apply for the grants. My sister is a perfect example. She's now stressed about getting a summer job to pay for her second year because she didn't have enough saved and got no grants or scholarships. Thanks for sharing, Guy Hey,
I think the problem with many young people getting ready for school is that they are sometimes lazy, but mostly so focused on all the things they’re doing just trying to get accepted, that they don’t even take the time to apply for the grants.

My sister is a perfect example. She’s now stressed about getting a summer job to pay for her second year because she didn’t have enough saved and got no grants or scholarships.

Thanks for sharing,
Guy

]]> By: Mr Jay http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123101 Mr Jay Fri, 16 Apr 2010 03:12:16 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123101 Amazing Skyler, what a wonderful world, so free school is really possible for anyone!! What is the tuition/TCA for the college you are attending? We all would love to see how scholarships totally cover a $54K private university cost. I'm sure a breakdown would enlighten everyone as to the realistic opportunities to come out of the Ivy's loan free. Teach us to be rich, while avoiding those chinese prison schools. I still think most folks will have to take out a little loan. Perhaps some of your scholarships were needs based? In this case the middle class kid who's family has a high EFC but no money after monthly expenses is still faced with loans. Amazing Skyler, what a wonderful world, so free school is really possible for anyone!! What is the tuition/TCA for the college you are attending? We all would love to see how scholarships totally cover a $54K private university cost. I’m sure a breakdown would enlighten everyone as to the realistic opportunities to come out of the Ivy’s loan free. Teach us to be rich, while avoiding those chinese prison schools.

I still think most folks will have to take out a little loan. Perhaps some of your scholarships were needs based? In this case the middle class kid who’s family has a high EFC but no money after monthly expenses is still faced with loans.

]]> By: Skyler http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123098 Skyler Fri, 16 Apr 2010 01:38:09 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123098 Nice advice, applying for scholarships is key (at least I think so), I have manged to secure a lot of money in small local scholarships, and have never had to take out a private student loans. It can be done, I would utilize resources that are non-lender based such as htp://finaid.org and this is also a nice reference http://studentloansforcollege.org/financialaidforcollegetips.html hope this helps some other students out there! Nice advice, applying for scholarships is key (at least I think so), I have manged to secure a lot of money in small local scholarships, and have never had to take out a private student loans. It can be done, I would utilize resources that are non-lender based such as htp://finaid.org and this is also a nice reference http://studentloansforcollege.org/financialaidforcollegetips.html

hope this helps some other students out there!

]]> By: NYCMom http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comment-123081 NYCMom Thu, 15 Apr 2010 17:57:32 +0000 http://www.iwillteachyoutoberich.com/?p=5005#comment-123081 We're a middle income family (he's retired; I teach part time--joint annual income under $90,000). We drive 1986 and 2003 used cars. We rarely go anywhere; we're very frugal. My child's initial FA offer from Dream LAC was just over $20,000/year--their total COA is over $50,000. My husband just called Dream LAC's FA office to ask for some aid closer to what Duke had offered our child--nearly $6500 more per year. Dream LAC's FA officer's response to our mention of Duke's offer: "I don't know how they arrived at that." LAC then upped its offer to $1700/year more. Dream LAC "typical" FA package shows the average offer over $11,000 higher than what we were offered. I'm bewildered by the discrepancy. Does it make sense to ask again? We’re a middle income family (he’s retired; I teach part time–joint annual income under $90,000). We drive 1986 and 2003 used cars. We rarely go anywhere; we’re very frugal.

My child’s initial FA offer from Dream LAC was just over $20,000/year–their total COA is over $50,000.

My husband just called Dream LAC’s FA office to ask for some aid closer to what Duke had offered our child–nearly $6500 more per year. Dream LAC’s FA officer’s response to our mention of Duke’s offer: “I don’t know how they arrived at that.” LAC then upped its offer to $1700/year more.

Dream LAC “typical” FA package shows the average offer over $11,000 higher than what we were offered. I’m bewildered by the discrepancy. Does it make sense to ask again?

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