Here's an email I recently received from a reader:
Who can I contact that would give money to help with my daughters college tuition? She's about to finish college in December but her loans are far from over and we are struggling to pay them. We have a parent loan besides her having her own loans that she'll start paying in June of 2010. Please let me know if you can help.
To be clear, she's asking if there's any money available to help pay tuition costs this semester -- the semester we're currently in (and the last for her daughter). Anyone have any suggestions for her?
Sounds like the current semester tuition is due and they don't have the money? I'd call the school directly and talk to their financial aid department and see what if anything they can do to help.
You're probably looking at more loans. Scholarships and grants and such generally take more advance planning to qualify for. But you can probably get a private loan quickly relatively easily. I hope they aren't overly burdened with loans already.
Does the daughter have a part time job? If not then she ought to get one.
Posted by: Jim | October 28, 2009 at 05:40 PM
Tell your daughter to strip.
Posted by: VirginiaBob | October 28, 2009 at 09:28 PM
@VirginiaBob - That's just wrong!
In an immediate case of need, I would be looking for assets to sell or a part time job to get through the crunch.
With a little more time to address the issue, I heard a great story not long ago while attending a webinar on college finance for my kids.
The facilitator told a story about a single mother that wanted to go back to school. She had just lost one of her jobs and had no idea how to pay for school. She spent an entire month one summer applying for every grant and scholarship she could find. She filled out forms, wrote essays and expressed her dreams to over 3000 different groups, companies, institutions and individuals.
When the dust settled, she got just over 1000 different grants and scholarships totaling nearly $30,000!
Her comment, "I will probably never make that kind of money in such a short period again. But all the work was well worth the effort."
Posted by: Greg | October 28, 2009 at 10:43 PM
Yeah, talk to the school's financial aid department--they can find work-study jobs with flexible hours for your daughter on campus, and they will know about any local grants (alumni scholarships etc) and also if you are eligible for tuition cuts by the school and/or more student loans if necessary.
I thought that you didn't have to start paying on student loans until after graduation? Sorry, I went to college in the 1980's--things might have been different then.
Other things to consider:
1) your daughter should definitely work at a part-time job (if she isn't already).
2) consider having your daughter live off-campus or at home/with relatives instead of spending money on student housing. Student housing is not a bargain, and usually comes with some kind of forced meal plan that subsidizes what's eaten by the football players but is pretty expensive for what a young woman needs.
Posted by: MC | October 29, 2009 at 06:28 AM
or just finish the last semester by transferring in credits from a state school....and save the cash. Calling the school would probably help though...they don't want promising seniors (i.e. likely future donors) getting nailed for the last semesters tuition.
Posted by: Bill, | October 29, 2009 at 06:37 AM
If they are asking us, your readers, to chip in, that's pretty sad. Read the post again: "Please let me know if you can help". Sorry I have my own family.
She may have to quit school for a while and work.
Posted by: Bill | October 29, 2009 at 07:50 AM
@MC: Some college loans start 6 months after graduation. Some loans start payment the month after your first loan distribution.
My wife and I have probably about $50,000 in college loans, and we are "only" paying about $500 a month for these loans. Unless she's got tons of other debt, even a college student can manage to make $500 a month. I'd imagine room and board is already included in the loans... In any case, if she's near graduation, she'll need to find a decent job quickly (which is why she went to college)!
Also, as everyone mentioned, talk to the financial aid office. There are programs/exceptions for people who are in financial trouble. In fact, the college that I went to had monies set aside to help students struggling with loans (hardly any students knew about this!!!) I'm sure you'd have to pay back the school somehow, but the rates and terms would be better than the loans.
Posted by: Anthony | October 29, 2009 at 08:27 AM
Did your daughter go out of state and to a private school. That is one of the worst idea unless you get a full ride for it. I know both my sister and I went to in-state schools and saved our parents and our selves a lot in student loans and tuition costs.
Posted by: ronald rule | October 29, 2009 at 10:20 AM
@ ronald rule - in state tuition is not what it use to be. Prices have risen so high that in some states it is more expensive to stay in state than to go to another state. I only know of one state that still has an amazing deal for in state tuition - University of Washignton.
Posted by: Teresa Osmera | October 29, 2009 at 10:48 AM
I don't think she can transfer just for the last semester- the colleges in Fl have a residency requirement for the last year (at least) to issue a diploma. Usually fees are due at the beginning of the semester, aren't they? That's when Financial aid is disbursed...As for paying off the loans after school, depending on the degree, she could work for a US Govt program to perhaps forgive some of those loans (like teaching an under-served population).
Posted by: Leah | October 29, 2009 at 11:27 AM
Teresa there are still state schools with relatively inexpensive tuition. U Idaho is under $5k, U Oregon is under $8k, even UC is still under $10k.
Posted by: Jim | October 29, 2009 at 12:39 PM
It is foolish to transfer in your last semester because most programs requires a certain percentage of credit hours be taught at their school/department.
The most important thing is to have her talk to the schools financial aid department. There are unsubsidized loans that she may qualify for. You won't know until she asks. It may be an unsubsidized loan and interest starts as soon as you deposit the check. I had a similiar situtation in my last year of school and I spoke with the financial aid dept I got a loan that covered tution. They are considered to be hardship loans that are at the discretion of the school and the financial aid department. Be prepared to show documentation/proof of hardship.
Once she graduates during the 6 month grace period she can consolidate her loans and lock in a lower interest rate on her loans (for the life of the loan). This needs to be done BEFORE she makes her first payment. If her loans are held by the Department of Education (and she does not consolidate) she needs to be aware that every July 1st the interest rate on the loan is recalibrated (sometimes up sometimes down).
Posted by: LyndaS | October 29, 2009 at 12:57 PM
How about.....the daughter in question?
Posted by: greg | October 29, 2009 at 05:11 PM
Both husband and wife should get a 2nd job.....
Then go to the Univ and ask the financial aid for a solution.....
Borrow more from a credit card if the home equity and personal parents loans are maxed out.....
Lastly, make the daughter work also (part-time)......
When problems happen in America, there are too many who look outside for help. The help starts at home, within your ownself/family/P&L, and then you look outside.
Kenny
Posted by: Kenny | October 30, 2009 at 12:08 AM
Isn't it kind of late to be looking for money for the current semester now? That pretty much gives you no choice but to add on to your current loans or even worse take out a personal loan (since I'm guessing its too late to up the student loans mid semester!)
That's just playing dumb
Posted by: Angie | October 30, 2009 at 11:52 AM