When people say they live off 'student financial aid'...

[heartmama]

...can you tell me what they are talking about?

The most you can get with FAFSA is 2750 a semester, and most university grants are in the 1-5k range per semester.

When people say they "live off" financial aid...what does that mean? It pays the rent? The utilities? Food? That would require at least 20k a year. Are people getting that kind of grant and loan money? What is the secret?

[moonyoungi]

Financial Aid Year 2009-2010


Aid Year


Award Description Category Offered Accepted Loan Details Select/Review Lender
Federal Pell Grant Grant 5,350.00 5,350.00
Federal Pell Grant 2 Grant 892.00 892.00
National SMART Grant 3 Grant 2,000.00 2,000.00
National SMART Grant 4 Grant 2,667.00 2,667.00
Cal Grant B Fees Grant 4,026.00 4,026.00
Cal Grant B Access Grant 1,551.00 1,551.00
State University Grant Grant 1,118.00 1,118.00
Stafford Subsidized Loan Loan 5,500.00 5,500.00
Stafford Unsubsidized Loan Loan 7,000.00 7,000.00 Loan Details Select/Review Lender
Aid Year Totals 30,104.00 30,104.00


I take out maximum loan...which isn't ideal.

Secret....? I dunno. I just file fafsa every year. I it also depends on where you live (cost of living) and the state that you are in, your income level, your parents income level, how many kids do you have, etc. Also I get extra grant (SMART grant) for being a science major, which I think is kind of unfair, but hey...I will take what I can get. Oh and to get Cal Grant (the state one) you have to keep up you GPA above 3.0 or something like that.

And I think it also depends on your degree program. Are you going for AS, BS, MS, doctoral, professional; Are you in private school, state school, community college, big university, small university etc; Are you full-time, part-time. So lots of variables.
I attend one of the CSUs for undergrad science program, by the way.

For example, before I transferred to four year university, I only received about 1000 per semester at a community college, which isn't enough. Now I receive about 5000 per quarter, which helps a lot more. But I also work part time by tutoring SAT. I also barter childcare by working at my kids' daycare, so I don't pay anything there, which is super lucky for me.

[nolansmummy]

Our awards look alot like that too. Me and Dh are both going to school full time too. We go to a state university in the midwest. the area has the highest COL for the state- but its fairly cheap compared to other areas of the country.
Our leftover F.A (after paying tuition and fees) goes toward
1. books
2. School supplies
3. Rent for 6 months ( we pay a semester at a time, our rent is 900$ per month)
4. Bills ( usually not enough to pay more than one or two months of all)

My dh also works pt during the semester to pay our bills.

[One_Girl]

I think some people who live off of their loans also have food stamps, daycare subsidy, and sometimes rent assistance that they also live off of. It is probably possible with all of those things and a cheap apartment.

[kittywitty]

I did this for two years before getting married and becoming a SAHM. Someday hopefully I'll finish school! I got max financial aid and loans. Of course, my tuition was inexpensive in-state and my rent & utilities were super low. I had daycare assistance but had to pay ($500+ a month for two kids not even 40 hours a week!) for months I didn't have classes-like in between fall and spring or spring and summer classes since that was daycare policy. And I had to work 10 hours a week minimum to get that, so if my work was off or I was sick for a week, I had to pay $500. Otherwise, our COL was low and no food stamps, child support, or anything.

[no5no5]

DH & I did it for almost 8 years (before DD was born). We had mostly need-based financial aid (federal grants, school grants, work study, and federal loans). We still have LOADS of debt. But yeah, considering we paid our rent, bought two cars and two computers, paid for (cheap) vacations, ate food, etc., we did pretty well. We did work part time, for a few months here & there. But it really didn't pay to work, because any money we earned was less financial aid they'd give us.

I actually did better at an expensive private school for undergrad than at a cheap state school for grad school, because the financial aid was far better. I had a full ride merit scholarship (tuition, books, and $8,000 a year) for my grad school, and I still have more debt from that than I do from my undergrad, where all I had was need-based aid.

[Black Orchid]

Wow, I'd love to knwo how to get approved for all that! I did the FAFSA and all we qualified for was Stafford Loans.

We are barely making ends meet on my DH's self-emp income, yet we are still being told that our EFC is over $6600 (!) There is *no way* that we can afford to pay that much OOP for him to finish his degree and we need him to finish his degree to improve our financial situation.

I'd love to know the secret. We aren't able to afford vacations, have had to cut back on kid's activites to the point that they aren't doing much at all and have to put groceries on credit cards. We had to cancel our health insurance and move to a much smaller place... and still do not qualify for much aid.

[heartmama]

I do file my FAFSA and have a zero EFC but all I get is the Pell Grant and small school grant which are eaten up by in-state tuition and books. They do offer me loans, and I haven't taken them...so maybe that is what I'm missing. But I am so scared of debt! Grant money though, I say yes to it all of course.

[BunnySlippers]

Canadian response:
first year $18,000, second was roughly 17,000, plus a grant for having a dependant, and a grant for being low income. Came to about $1500 first year, and..$1700? second year combined grant total.
The grants are automatic and do not get paid back. The government student loan I only have to pay back $7000 for each year..and if I can't afford it I can have it reduced or put off. After 15yrs it is wiped out entirely if I still owe anything.
It still requires major cut backs and being careful...but it is definately doable.

[shayinme]

Originally Posted by heartmama

...can you tell me what they are talking about?

The most you can get with FAFSA is 2750 a semester, and most university grants are in the 1-5k range per semester.

When people say they "live off" financial aid...what does that mean? It pays the rent? The utilities? Food? That would require at least 20k a year. Are people getting that kind of grant and loan money? What is the secret?

I got my BA about 10 years ago and my Masters back in 2006. When I was in undergrad once I hit junior/senior year I was able to borrow more money. I think my refund loan checks were like $800-900. Clearly could not live off that. But when I got to grad school, I was able to take out a lot more money, so I had loan refund checks in the $4500-6000 range which I did use to supplement my part time job.

Honestly it was a mistake, these were all federal loans and all told my student loans thanks to taking out the max (I went to private schools) was in excess of $100,000. Nope i haven't paid it off, not sure I ever will.

Knowing what I now know, I would advice against taking out extra money to live off of unless you have no other choice.

[sparklefairy]

EFC doesn't mean what you're expected to contribute to just tuition for school -- they take into account what his living expenses would be also. Does that make sense? So you're probably already paying that $6600 toward rent or mortgage, food, clothing, etc.

Originally Posted by Black Orchid

Wow, I'd love to knwo how to get approved for all that! I did the FAFSA and all we qualified for was Stafford Loans.

We are barely making ends meet on my DH's self-emp income, yet we are still being told that our EFC is over $6600 (!) There is *no way* that we can afford to pay that much OOP for him to finish his degree and we need him to finish his degree to improve our financial situation.

I'd love to know the secret. We aren't able to afford vacations, have had to cut back on kid's activites to the point that they aren't doing much at all and have to put groceries on credit cards. We had to cancel our health insurance and move to a much smaller place... and still do not qualify for much aid.

[Drummer's Wife]

Originally Posted by sparklefairy

EFC doesn't mean what you're expected to contribute to just tuition for school -- they take into account what his living expenses would be also. Does that make sense? So you're probably already paying that $6600 toward rent or mortgage, food, clothing, etc.

Right. My EFC is not 0 (anymore), but I can't recall the amount now b/c it hasn't changed the fact that I still get enough aid to cover my full tuition and books - with enough left over to pay a couple bills/buy a computer/etc.

It might depend on your school (community college vs. university) but the biggie is if you live on campus or not. Most parents rent or own a home, so it's a non-issue. I think my community college estimates my cost of attendance to be something like $30K a year - even though the classes are really cheap (like less than $50 a credit). They are factoring in a portion of housing, childcare, vehicle/gas, food, etc. As a family of 6, it costs us more than $30K to live for a year - and we don't live off financial aid as my DH works full-time and I was a SAHM before going back to school - but they calculate that my portion of the costs are about $30K - and figure my need-based aid off that. I don't have to pay anything out of pocket for school right now.

Some people do make too much (and/or have a small enough family size), that they don't get any grants or forms of aid besides loans -- but the EFC doesn't mean you necessarily have to pay that amount in order to attend school.

[Black Orchid]

Okay, I understand that, it makes sense... but we still didn't qualify for anything other than a stafford loan. After further conversation, we are suspecting it is because he is self-employed and his inventory is worth $30K. That is his business, but it considered an "asset"... not that we could sell it off and use the money for anything... because that is what is used to fuel the business

It just sucks to want to get ahead and do better but be stuck. I suspect we are right at the bottom of "well off enough to be expected to pay". Except that we aren't well off at all and don't have the resources to pay for things for our family, let alone fund college. We don't qualify for any kind of aid.

[PlayaMama]

Originally Posted by Black Orchid

Okay, I understand that, it makes sense... but we still didn't qualify for anything other than a stafford loan. After further conversation, we are suspecting it is because he is self-employed and his inventory is worth $30K. That is his business, but it considered an "asset"... not that we could sell it off and use the money for anything... because that is what is used to fuel the business

It just sucks to want to get ahead and do better but be stuck. I suspect we are right at the bottom of "well off enough to be expected to pay". Except that we aren't well off at all and don't have the resources to pay for things for our family, let alone fund college. We don't qualify for any kind of aid.

look into PLUS loans. you might be able to take those out to cover your portion. i'd also check about getting a private loan.

i often found a discrepency between what the school thought i needed to live and what i actually did need.

[shayinme]

Originally Posted by Black Orchid

Okay, I understand that, it makes sense... but we still didn't qualify for anything other than a stafford loan. After further conversation, we are suspecting it is because he is self-employed and his inventory is worth $30K. That is his business, but it considered an "asset"... not that we could sell it off and use the money for anything... because that is what is used to fuel the business

It just sucks to want to get ahead and do better but be stuck. I suspect we are right at the bottom of "well off enough to be expected to pay". Except that we aren't well off at all and don't have the resources to pay for things for our family, let alone fund college. We don't qualify for any kind of aid.

If he took out federal student loans (never the private ones) could he afford the cost of school then? Will his career path make it worth the cost of the loans? I didn't qualify for anything but federal loans, and the occasional small scholarship based on merit once I was in school. Yet while I don't make as much as I would like (mostly because of location) I have a solid career path that I did not have beforehand.

I would have loved to have been able access to things like grants to decrease my costs but my income was too high.

[Holland73]

Originally Posted by PlayaMama

i'd also check about getting a private loan.

I'd be VERY, VERY careful about going the private loan route.

Read ALL of the fine print and be honest with yourself about whether or not you can pay it back, based on their terms.

[t2009]

Originally Posted by Holland73

I'd be VERY, VERY careful about going the private loan route.

Read ALL of the fine print and be honest with yourself about whether or not you can pay it back, based on their terms.

ITA.

I have (reluctantly) taken on a boat-load of debt for grad school but I have stuck strictly to federal- and school-funded loans. The ONLY reason I felt comfortable doing so was because if something were to happen to me (death, injured such that I can't work, etc.) my DH will not be stuck with the debt. I couldn't imagine him having to repay my loans while trying to raise DS -- simply would be impossible given his earning potential.

I'm not sure private loans (or even PLUS Loans) have debt write-off in that case but I'd doubt it.

... Just one more thing to think about...

[Holland73]

Originally Posted by t2009

I'm not sure private loans (or even PLUS Loans) have debt write-off in that case but I'd doubt it.

There are 2 types of PLUS loans and both are federally funded:

1. Parent PLUS loans, in which parents borrow the money for their child -- undergraduate only

2. PLUS loans for graduate students, which has NOTHING to do with parents. This is how I am funding my grad school expenses.

[an_aurora]

We are "living off of" financial aid here. We are paying $$*&^% out of state tuition, and grants cover most of it. We are also maxing out our student loans, and paying rent one semester at a time. During the semester we both work (me 2-12 hour shifts, DH 2-8 hour shifts on the weekend) and that almost covers utilities, car payment, gas, and child care. We are still alternating utilities (paying gas one month, electric the next) and are barely, barely getting by.

ETA: by "maxing out" student loans, I mean government ones; we have not and will not touch private loans.

[Black Orchid]

Well, we aren't 100% sure what his goal is yet. He has a mish-mash of undergrad credits, but not enough to graduate in one are aof study. We aren't sure if he will use his education to improve his business (which has fallen off a cliff in the past three years) or find steady employment...

We aren't going anywhere near private loans. We don't have the money to pay that kind of interest. I like the idea that the Staffords, etc payments can be structured based on income, etc.

The place he going to go doen't seem expensive, but it is a private college. It runs about $550 per credit PT. It is very close to us, has really great instructors and has a program for returning adults which is why he picked it.

Interesting discussion. I am learning alot. Thank you for letting me pick your brains!