I posted a thread in the MM forum here: http://creditboards.com/forums/index.php?showtopic=270028

I met with an admissions official on Saturday and I got some paperwork started. I'm going to be an independent student (32 years old, I'm feeling a little awkward about going to back to school, but that's another thread).

I applied for my FAFSA PIN and got it in my e-mail today. I'm supposed to meet with a Financial Aid official this Saturday.

I guess I'm just looking for any advice on what not to do. I've never had a student loan before and just wanted to be aware of all the pitfalls.

Being an independent student, would it be harder to get a subsidized Stafford loan than if I were a dependent student. Does it go my income?

Thanks for any advice...

The financial aid counselor will go over your costs of living living, income, expected contribution, and cost of attendance - then either give or mail you a financial aid offer letter which details grants, loans, waivers, scholarships, etc. Ask as many questions as possible, in fact, take a list with any concerns into the meeting.

Go over the offer, definitely take the grants, waivers, and scholarships, but for loans consider how much debt you'll be willing to take on for your education. The subsidized stafford will be influenced by your income and coa, so it may be less than the max, but you should be eligible for the max unsubsidized stafford, that is no reason to take the max unless needed. The rate for staffords is 6ish%, and that adds up pretty fast.

A few things to keep you on track...
do not drop out or fail a class and assume you won't have to repay a loan
do not forget about the terms of your loans
use accounting software to keep up with loans and interest amounts, expected due dates
keep the statements you receive for loans and actually read them (there could be a a mistake)
log into NSLDS regularly
while in school pay the interest, or even make small payments when you have extra income
(I used my tax refunds for this)
keep in touch with the counselors, they are there to help you and after the start of term their offices are not as busy.

Good luck on your journey, I am an independent student (grad now) as well and it is very tough to pay for everything, but it can be done.

Ok, my 2 cents:

Your comment on whether being dependent or independent affecting loan amount. It's all based on income. If you are a dependent student your parents income will be taken into account in that they will assume the parents are paying a percentage of the costs. Being independent is usually better for you in my opinion as your income while going to school is usually pretty low. The first year is usually the worst for you as you probably were working during the past year and that's the income they look at. There is steps you can take if you are no longer making that money and they can base financial aid based on future income expectations. Ask the counselor about this to ensure you get the most help from financial aid (FA). Getting your income to it's lowest level while in school can help as usually your grant opportunities go up (most grants are based on financial need) and the amount you can loan increases. Pell grants and some scholarships are based on your FAFSA, so appear as needy as possible. There are many other sites for grants and scholarships that are out there that are not part of the FA system, so check around. If you are going to grad school, a whole new world opens up for funding in the form of fellowships, teaching assistant TA, and research assistant RA positions.
P.S. All of this takes into account also that you apply for FA on-time. The govt has so much free money to give every year and that all gets divvied up to the people who file by the deadline. You still might get some free money after the deadline, but not as much is available. If you don't make the deadline, most likely all you will get offered is Staff loans.


As far as Loans go, the previous advice is good from Alum. Figure out what your NEED is and loan only that. You will thank yourself later for not have huge loans. As far as amounts, you don't have to make the right decision the first time around for the whole year. Let's say you are eligible for 5000 per year for unsub staff loans. And you only take 2000 of the loans thinking that's all you need. Then in December you find that you dont' have enough money to make the rest of the year. You can go back and apply for another loan amount up to the remaining amount you have left (3000 in this case).

The counselors are there to help, so don't be afraid to ask questions. The more prepared you are with questions, the better off you are. You might ask them something they didn't think about that will help you. Like telling them that your income next year is different than what your taxes reflect. What can they do about that.

Good luck!

Thanks for the info.

I was looking over the costs in the book they gave me. It says that it costs $6948 per semester at the school I'm considering. I would be going for a 2 year Associates Degree. So would that mean $6948 x 4 semesters = $27,792? So I would have nearly $28,000 (plus interest) in loans to pay back after I graduate? All I can say is .

That's a sad but true fact, but at least it's good that you look ahead a know what you are getting into. If the degree you are seeking has a good return on investment is the number one decision to consider. Education is first and foremost an investment into your future.

It's free to file the FAFSA and see what you monetary reward would be and who knows they may give you a lot of free money cutting the amount you have to loan. Always file and make decisions later.

Don't forget incidental costs also if you really want a complete picture. ie, other costs while going to school. Housing, books, etc.

The good news: I know it sounds and looks like a lot of money, but it can be still a very rewarding investment.
I currently have 100K in student loans and just got my first job (this may seem a bad situation for most, but not at all). Here is how I look at my situation, maybe you can relate:

Previous income in job: 36K with no future. Projected life earnings if continued for 40 years = 1,440,000.
Current projection: 65K with great upward mobility. Projected life earnings (staying at 65K) = 2,340,000. (based on 36 years of work and no income during 4 year school.)
Payoff of my loan is 140K over 30 years. So final story is 1,440,000 versus 2,200,000 and a much better future.

This is an extremely crude calculation, but it can provide one more piece of information in your decision making. Even if the education doesn't make you any money in the long run, does it provide a better life than current job opportunities, etc.