My credit is in the toilet and I'm transferring from my California Community College to a 4-year University. My Mom doesn't want to take a loan out to help me with school in any way (She still believes that scholarships will magically appear and pay for the rest of my education.) and since I have five years of school left (2 undergrad, three in law school.) and even my savings will barely put a dent into what I'll have to pay, I have reluctantly started to look at Stafford and Perkins loans to help cover the gap between any FA package that various universities may offer me. (I'll have about $5,000 saved for next school year.)
Due to my financial situation, I've pretty much decided that I'll attend one of the State Universities to cut down on costs.
My EFC (I'm 21 and an Independent Student by FA standards due to some extremely strange circumstances, mostly having to do with being a group home for two years before college.) is about 1300 this year and will probably be much lower for 2006-07 (judging on my income being much lower than the 2004 tax year.)
My questions to all of you is these:
For Junior, Senior Undergrad years and each year of Grad School (I think Law school falls into this category.), I am curious as to the Maximum amount I'd be able to borrow each year in goverment funded subsidized and unsubsidized loans. I've also heard that some law schools have programs to help with loans if you are going to go into Public Interest law (which is my dream.)and I'm curious if anyone knows anything about those.
What is the average amount of debt that most students leave Undergrad studies with? What about after three years at a Public or Private Law School?
I apologize for the long post, but I hope that someone can offer some answers to my questions.
Thank You
Full Version: Loans....How much? (and other questions)
Hi, welcome to the Student Loan forum. I hope you find the information you need here. 
I'm sort of confused what you meant when you said "I have reluctantly started to look at Stafford and Perkins loans to help cover the gap between any FA package that various universities may offer me." What other type of financial aid have you applied for?
As an independent student, you will be eligible to receive $10,500 per academic year in Stafford Loans for your junior and senior year - $5,500 of which would be subsidized loans. You cannot receive more than $46,000 in stafford loans during your undergrad studies.
When you graduate and go to law school, you will be able to receive $18,500 per academic year, of which up to $8,500 can be subsidized. A maximum of $138,000 can be borrowed as a grad.
You should check out the Stafford Loan website for more information on Stafford Loans.
For a Perkins loan, as an undergrad, you can borrow $4,000 per academic year, with a $20,000 maximum. As a grad, you can borrow $6,000 per year with a $40,000 maximum. You should refer to the Perkins Loan website for more information.
I can't answer your question about the "average" amount of debt that someone leaves school with, but I will offer you this advice - take out only the loans you need to attend school. Don't use them for any other purpose, and be careful about how much you actually receive. Most people take out loans without any thought as to how they will be repaid. Remember that when you first get out of school, in just about every profession, you're not going to be making a lot of money. Loans have to be repaid, and when you have a big one hanging over your head, it makes it really tough to do anything else.
If I were in your position, I would check into work study programs, I would hold down a job, whatever it takes to get the money while reducing the amount of the loans I'd have to take out. I would also suggest that you contact your school and ask them about scholarships, because you are right in one regard - they don't just magically appear. But there are many funds that never get awarded because no one ever applies for them.
Good luck. Let us know if you have any other questions.
I'm sort of confused what you meant when you said "I have reluctantly started to look at Stafford and Perkins loans to help cover the gap between any FA package that various universities may offer me." What other type of financial aid have you applied for?
As an independent student, you will be eligible to receive $10,500 per academic year in Stafford Loans for your junior and senior year - $5,500 of which would be subsidized loans. You cannot receive more than $46,000 in stafford loans during your undergrad studies.
When you graduate and go to law school, you will be able to receive $18,500 per academic year, of which up to $8,500 can be subsidized. A maximum of $138,000 can be borrowed as a grad.
You should check out the Stafford Loan website for more information on Stafford Loans.
For a Perkins loan, as an undergrad, you can borrow $4,000 per academic year, with a $20,000 maximum. As a grad, you can borrow $6,000 per year with a $40,000 maximum. You should refer to the Perkins Loan website for more information.
I can't answer your question about the "average" amount of debt that someone leaves school with, but I will offer you this advice - take out only the loans you need to attend school. Don't use them for any other purpose, and be careful about how much you actually receive. Most people take out loans without any thought as to how they will be repaid. Remember that when you first get out of school, in just about every profession, you're not going to be making a lot of money. Loans have to be repaid, and when you have a big one hanging over your head, it makes it really tough to do anything else.
If I were in your position, I would check into work study programs, I would hold down a job, whatever it takes to get the money while reducing the amount of the loans I'd have to take out. I would also suggest that you contact your school and ask them about scholarships, because you are right in one regard - they don't just magically appear. But there are many funds that never get awarded because no one ever applies for them.
Good luck. Let us know if you have any other questions.
QUOTE(TxQuiltGirl @ Sep 11 2005, 07:58 AM)
Hi, welcome to the Student Loan forum. I hope you find the information you need here.
I'm sort of confused what you meant when you said "I have reluctantly started to look at Stafford and Perkins loans to help cover the gap between any FA package that various universities may offer me." What other type of financial aid have you applied for? I already have work study,Pell Grant, BOGW waiver (a California program that pays tuition at Community Colleges for students with financial need.), and a grant from the State of California for students formerly in Foster Care. The BOGW and Chaffee Grant won't be there for me in 2006-07, which is when I'm going to transfer....and I'm not sure what the gap is between the free and self-help financial aid I am offered from whatever college I transfer to. I wanted to graduate from college with no debt....but with costs the way that they are, I have begun to consider loans as a way to help.
I'm sort of confused what you meant when you said "I have reluctantly started to look at Stafford and Perkins loans to help cover the gap between any FA package that various universities may offer me." What other type of financial aid have you applied for? I already have work study,Pell Grant, BOGW waiver (a California program that pays tuition at Community Colleges for students with financial need.), and a grant from the State of California for students formerly in Foster Care. The BOGW and Chaffee Grant won't be there for me in 2006-07, which is when I'm going to transfer....and I'm not sure what the gap is between the free and self-help financial aid I am offered from whatever college I transfer to. I wanted to graduate from college with no debt....but with costs the way that they are, I have begun to consider loans as a way to help.
I am a junior at CSUF with very close to the same EFC. My pell grant and Cal grant paid for my tuition in full. I went ahead and took out the maximum loan, but that is 'cause I was working a part time job in the evenings to make ends meet before I started back to school. So now, school is basically my part time job, and my loans are how I am paid. I would think that as long as you aren't trying to pay rent and raise a family in CA you will be able to get by with a very minimal student loan with that EFC. The absence of the Fee Waivers once you leave
community college kinda stinks - I was taking all kinds of classes I didn't need just for fun since I didn't have to pay for them. Now I have to be much more careful! Good Luck!
community college kinda stinks - I was taking all kinds of classes I didn't need just for fun since I didn't have to pay for them. Now I have to be much more careful! Good Luck!
QUOTE(2kids2cats @ Sep 11 2005, 01:48 PM)
I am a junior at CSUF with very close to the same EFC. My pell grant and Cal grant paid for my tuition in full. I went ahead and took out the maximum loan, but that is 'cause I was working a part time job in the evenings to make ends meet before I started back to school. So now, school is basically my part time job, and my loans are how I am paid. I would think that as long as you aren't trying to pay rent and raise a family in CA you will be able to get by with a very minimal student loan with that EFC. The absence of the Fee Waivers once you leave
community college kinda stinks - I was taking all kinds of classes I didn't need just for fun since I didn't have to pay for them. Now I have to be much more careful! Good Luck!
community college kinda stinks - I was taking all kinds of classes I didn't need just for fun since I didn't have to pay for them. Now I have to be much more careful! Good Luck!
I'm headed the CSUF next year! It's good to know that if I live within my means, it is possible to graduate with little debt....
Law school, OTOH, will be a completely different ballgame!
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