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How should I pay for my college?
I'll be starting at a private university in January. It's my dream school and I'm super excited to have gotten in. The school itself usually costs 41k a year, but I've earned enough scholarships that I knocked the price down to about 18k a year or about 72-74k for four years. A big part of the expense is dorming and meal plans for four years.
I'm okay with the high cost because I feel like this is my only way to break out of my parents house, become independent, and create something of myself.
I really want to take out a private loan to cover all four years at one time. I know this will make the interest sky-rocket, but I'm scared to death that if I do it year by year, that I'll be denied the second or third year into my schooling for already having a loan out.
My father also plans to commit bankruptcy for the second time in his life in the next year so I will also possibly be losing out on my cosigner which could put me in a bad situation and unable to get anymore loans out. This could cause me to have to drop out of school and then the loans I already have will come due and it would just turn into one giant mess. That's why I want to take out the entire 72-74k loan at one time.
I know the dropout rates are high, but it's really important to me to go to college and I know I'll give it everything I've got.
My next question is, when do schools realistically expect you to pay the tuition? Right now I live several hours away from my father so I would rather wait to take out the loan until I'm closer to him which I will be when I start at my new college in less than a month.
It says the 20th of December is when you're supposed to pay for the semester but is that really realistic if classes don't even start until January 14th? I would rather wait until I've moved into the dorm to pay so I know I'm not getting the short end of the stick, because right now they haven't told me where I'm being dormed yet or what my schedule will be. Why would I pay for something I haven't even seen yet?
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Maybe give some free advice about: Personal Finance?
Last question first. Once you pay your tuition the school then knows you are actually going to attend. They will then give you a dorm room and you can register for classes for the upcoming classes. You cannot register for classes until you have paid for them.
As for student loads versus a regular loan. student loans are uncollateralized loans at very low interest rate guaranteed by the Federal Government to the banks that actually make the loans. To Get the kind of money you want on an unsecured loan is not going to happen and even if you had the collateral with which to secure the loan the interest rate would be outrageous compared to a student loans. Student loans are also held in abatement until six months you graduate or stop going to school.
My suggestion is you go to the school and talk to the Finance Officers there. There may be different grants you could be entitled to which are given on a yearly basis which will lower what you need to borrow each year to cover what is outstanding. That $72K you think you need could be greatly reduced. It was for my son when he went to school. Now he also had military service points that cut his cost in half. Though with different grants that were available to him he graduated with less than $20K in debt and he has 20 years to pay it off.
My advice is to look before you leap into the deep end of the pool. GO and talk to the Finance Officers at the school. You may be pleasantly surprised at what they can do for you. Make sure to tell them your father plans on filing for bankruptcy. That fact that you do not live with him his plans and credit rating should not affect you.
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