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JohnDeere
Mar. 30, 2013, 12:07 PM
DD is off to college, we will pay for part of her school but for professional school (in 2 years) she will need loans. The federal loan that caps at $20000 or whatever wont be enough :mad:& the other federal loan has higher interest & fees so should we go private? DH & I didnt get loans back then when school was cheap so no way to know what to do. Federal loans or private loans?

AffirmedHope
Mar. 30, 2013, 12:22 PM
Just do your research and know what you are getting yourself into. How much more do you need above the $20,000? The school might have a plan that you can make monthly payments on difference. Even if you can't finance the entire difference, the less loans you have to take out, the easier it will be for her to repay it later.

I wish I was wiser when I was borrowing. I'm looking at about $800 a month in payments once my grace period is up.

CatPS
Mar. 30, 2013, 12:23 PM
Federal, all the way. Private loans won't be able to compete and federal loans are much more flexible with deferments, etc.

The best thing she can do is make smart decisions about how much she is borrowing and how that is going to impact her for the next 10-20 years... DH and I pay enough on student loans each month to cover a modest mortgage :(

soloudinhere
Mar. 30, 2013, 12:23 PM
As much Federal as you can get.

But think hard. I graduated with $24,000 in federal loans. While the $250/mo payment doesn't seem like a lot-- it is when you're working your first job out of college. Take as little debt as humanly possible.

The advantage to Federal loans is they have way, way more flexible repayment options, forebearance options, forgiveness options. Private loans are like a car payment that you can't get rid of, and they stop for no man. If you have to take private loans for school, think LONG and HARD about what you're doing and what it will take to pay them. I'm looking forward to being debt free from school sometime around 2020, and it's limiting my options in terms of jobs and family because I HAVE to make a certain amount to get out from under these loans.

My other half busted his ass, worked full time through school, and got scholarships/lived at home-- he got to have SO MUCH more fun as a young adult because he didn't have that big bill to pay. And now we are able to live like we do because he did that and I really do owe him a lot for that foresight.

JohnDeere
Mar. 30, 2013, 12:31 PM
Pharm school is about $29k + living + books + alltheothercrap/yr so really no way to pay for that extra. We told all our kids we would pay this much (and its a lot) toward their school & no more, she chose a private over state school because the school is acredited. We are hoping that loans will be paid off when shes hired--they do that now, hope they will when shes out! Only other choice is fellowship, will see what happens there. I thought federal seems $$$-not the case?

WindyIsles
Mar. 30, 2013, 01:24 PM
Federal as much as you can - much more flexible repayment options (new Pay as You Go, Income Based, Income Contignent and ability to defer etc). After seeing my friends struggle with insane interest on private loans and being unable to defer and now having some of the private loan companies going after their parents I wouldn't touch private with a ten foot pole.

soloudinhere
Mar. 30, 2013, 01:28 PM
Pharm school is about $29k + living + books + alltheothercrap/yr so really no way to pay for that extra. We told all our kids we would pay this much (and its a lot) toward their school & no more, she chose a private over state school because the school is acredited. We are hoping that loans will be paid off when shes hired--they do that now, hope they will when shes out! Only other choice is fellowship, will see what happens there. I thought federal seems $$$-not the case?

Not really. I am looking at my federal loan statement...my stafford loan (the largest at $22,000 and change) is at just over 6%. I was able to defer this loan for 2 years while underemployed after school and the government paid the interest so the damage didn't compound. I graduated in 2009.

Private loans have no such options- deferments are usually limited to 6 months over the life of the loan, they tack the payments on to the end, and you can't get rid of them unless you die.

There are some private lenders who are good-- for example, your local credit union may have a decent option. I would never in a million years borrow money from sallie mae and the like. My credit union (which is open nationally-- you may want to look into them) offers undergraduate loans at a maximum rate of 9.25% (for marginal credit borrowers) and they do offer graduated payment and they do allow longer terms for lower $$, reducing the payment if you're underemployed (though you can't defer it entirely).

You will almost certainly need to cosign a private loan for your child.

clanter
Mar. 30, 2013, 01:48 PM
Pharm school is about $29k + living + books + alltheothercrap/yr so really no way to pay for that extra. ?

my oldest daughter's best friend in high school worked at CVS during high school then went to college under scholarship support from CVS for students in college with a particular focus on pharmacy school

She has had a job once she completed school back with CVS

JohnDeere
Mar. 30, 2013, 02:16 PM
DD trying to get hired @ CVS, wont turn 18 for another 2 months so they wont hire her in our state.

ellebeaux
Mar. 30, 2013, 02:44 PM
check out this website for information on repayment programs for federal loans: http://www.ibrinfo.org/

I echo what others said - do NOT do private loans. There is no reason to with the new federal repayment guidelines.

Donkerbruin
Mar. 30, 2013, 02:52 PM
My best advice is for her to make darn sure that pharm school is really what she wants to do. Many kids go to grad school for lack of something else to do. Also, she isn't 18 yet, so pharm school is a little ways away. I thought I was headed straight for med school when I was 18, and a couple of semesters in college changed my mind very quickly.

soloudinhere
Mar. 30, 2013, 02:53 PM
DD trying to get hired @ CVS, wont turn 18 for another 2 months so they wont hire her in our state.

I think you might be overthinking this.

I looked into pharmacy school. it's 2 years on top of a BS in sciences. I don't know any of the top schools that take someone with an AA. So you're at least 4 years out and your DD may completely change her mind when she sees what a bear a pharmacy degree really will be.

Unless we're not talking a PharmD? in which case, may not be worth the $29k asking price.

Source: I have undergrad degrees in biochemistry and molecular genetics, and I now work in software consulting. The pay was better and I skipped on pharmacy school because by the time I graduated, 2 more years of school was too much for me to consider and I just needed a break. Ended up getting a great job and have no intention of going back.

JohnDeere
Mar. 30, 2013, 05:25 PM
2 years prepharm, 4 years pharmD here, maybe different there? She may decide on something different, thinks 6 years is to much when she thinks about it, & plus scholarships end when pharmD school begins shes smart enough to do med school but no interest so pharm seems good option.

JanM
Mar. 30, 2013, 05:43 PM
My understanding is that as of 2015 (not far away actually), all new Pharmacists will need the PharmD degree. Whatever you do, don't co-sign the loans. Stay federal as much as you can. There might also be special programs for Pharmacy degrees, with a requirement that the student work in an underserved area, if they still exist. Walgreen also has a scholarship program.

A strange note about loans (and don't know if it's still this way or not). On the Gail Voz-Oxley (or however it's spelled) show Til Debt Do Us Part, in Canada they allow Student Loan default with bankruptcy, but not if there's a cosigner.

TheJenners
Mar. 30, 2013, 06:25 PM
* Don't co-sign the loans, just don't

* Look for grants...I mean look, look hard. I went to school almost completely funded by grants, due to moving out and not being supported by my crazy mom. Independent making less than a living wage (also courtesy of crazy mom; she wouldn't support me and in fact took me off her health insurance for reasons unknown, but I was required to work the family farm at slave wages) meant that I qualified for maximum funds from the Pell Grant, which paid for all but part of my last semester of my senior year. The Grant funds are based on the previous year's tuition, so when my school went up 16 percent, I had to take out a small loan (less than $3k) to cover the remaining tuition.

* Look for scholarships. There are so many under utilized scholarships out there. We supply a $1000 scholarship for students interested in fire/police/criminal justice...and I think we are on the 7th year running of no one even applying for it? Wanna know why? They have to write an essay. Some universities offer freshman scholarships based on HS academics or SAT/ACT scores. I scored a 32 on the ACT, so my school offered a freshman scholarship that covered tuition. Had to keep my grades up in school though.

Debt is hard as an adult who understands paying bills, a budget, and with a decent job or two working adults. Debt as a young person with no working knowledge of budgets or the real world, and no decent job prospects...that is a losing combination. And no guarantee she will finish school.

JohnDeere
Mar. 30, 2013, 08:34 PM
Dont sign loans because I will get stuck? Or another reason?
No grants--DH made to much $ last year thanks to Company who paid his 4th qtr bonus early, I work 2 jobs to support horses. She is getting more than 60% off total cost with scholarships d/t 32/33 on ACT, none continue into grad school though :no: . And she will finish in something, she hates housework & wants to hire it all done, you go girl :lol:
We can pay undergrad costs, Im wondering if we should get loans for those & keep some cash for grad school to make up the cost above $20000, or go ahead & let her get loans only for grad school.
Jenner I know what you mean about essays, no one wants to write them :confused:

soloudinhere
Mar. 30, 2013, 08:46 PM
Dont sign loans because I will get stuck? Or another reason?


Because student loans are not dischargeable (through bankruptcy or any other method) and if she can't/won't pay, then they will sue both you and her. Co borrowing is just what it sounds like- co borrowing.

That said: if you don't want to cosign, you will need to make sure your daughter establishes her credit now so she has a lengthy credit history of her own when she goes to apply for a private loan. Otherwise, she won't get one-- it's not like federal loans where credit doesn't matter.

My suggestion? if taking loans now means that you will not have to take private loans later, TAKE THEM NOW. If you were going to pay $30k per year and you're willing to pay $20k and take $10k in federal loans, over 6 years instead of 4? do that. You'll be better off and your daughter won't get trapped with private loans.

Additionally, if your daughter decides not to go through with it and get a regular 4 year degree, she has a little skin in the game.

twotrudoc
Mar. 30, 2013, 08:47 PM
Don't cosign because not only could you get stuck but also any delinquencies will be recorded for 7 years on your credit report. Also, Federal loans have no statute of limitations, you will owe them forever. No bankruptcy will clear them (I am in no way advocating for bankruptcy just using it as an example of how fed loans are not ever going to go away).

From a strictly money point of view, the stability of the Stafford loans make more fiscal sense. Subsidized has no interest while in school, unsubsidized accrues interest (6.8% currently)--

http://www.staffordloan.com/stafford-loan-info/interest-rates.php

You can make the interst payments while in school however, you are not required to start making payments until 6 months after graduation. Lots of good info on that link.

I am using Stafford loans to finish my Masters year after next. But, I am 41, Accounting is about as stable a career field as is possible, and I have a part time job teaching online as soon as I get that masters to supplement my income and knock out that $10,000 debt post haste.

JohnDeere
Mar. 30, 2013, 09:13 PM
That said: if you don't want to cosign, you will need to make sure your daughter establishes her credit now so she has a lengthy credit history of her own when she goes to apply for a private loan. Otherwise, she won't get one-- it's not like federal loans where credit doesn't matter.

Credit card? Loan for a horse? :lol:

soloudinhere
Mar. 30, 2013, 09:35 PM
Credit card? Loan for a horse? :lol:

In all seriousness, adding her as an "authorized user" to a credit card you have that you've had for a long time and is in good standing (both Discover and Amex both will report-- if you're not sure, ask your issuer if they report authorized users) will give her an immediate credit history.

JohnDeere
Mar. 31, 2013, 02:28 PM
She does have a card with her name on our account, does that count? Mainly to get gas/food when we send her to Walmart...

JanM
Mar. 31, 2013, 04:06 PM
Yes, that's a start, and the authorized user on any other cards you have.

You don't co-sign with anyone, because if they default you have to pay.

And from watching Suze Orman (I don't watch much, because people keep pulling the same stupid stunts over and over) I discovered that the death of the loan primary person doesn't end the loan, but the co-signer has to repay the loan. I thought that was bizarre.

There are also federal programs, where if you go to work for the federal government, or a few other public service jobs, and pay the loans for 10 years, you have the rest forgiven. However, with the salary a pharmacist makes, I'm sure she'll be able to pay the loans off faster than that.

I checked and each state licenses pharmacists for that state, not a national standard. Apparently, transfer of licenses to another state is fairly easy. I ran into a man who is a headhunter for pharmacists, so they are in great demand all over the country.

JohnDeere
Mar. 31, 2013, 04:49 PM
Its growing & I hope she gets an offer that pays the loans off, thats part of the reason for going to the school she picked--$$$$ but has a good rep in a state with 2 SOPs.

Ben and Me
Mar. 31, 2013, 05:06 PM
I'm not sure if this applies for pharmacy school (my guess is that it does), but for other medical programs (vet school for sure), you are allowed to borrow up to $40,500 a year in Stafford (government) Loans (6.8%), instead of the $20,000/year for other programs. On top of that, you can get GradPlus loans, which are also through the government but have a slightly higher interest rate (around 7.5% I think).

randomequine
Mar. 31, 2013, 05:13 PM
The cap on undergrad is not so low (wish it were now that I'm staring down the barrel of $40k+....I was so, so stupid) -- honestly, if you're super concerned, I would take the money you were planning to pay, stick it in an account and take out the deferred federal loans they offer for undergraduates.

I'm pretty against debt in general (well, now I am...not so much when I was a freshman and sophomore and it was oh-so-easy to sign my name!) so the less you can take out, the better - but this way if something changes you have the money to pay everything off immediately....or she can defer them through her PharmD and then you can contribute your portion at the end.

It's so rough to be a student now. DH and I will be saving as soon as we can for children's college funds.... When she turns 18, she can start in looking for a job with a pharmacy like CVS....it's only 2 months from now, and that will be even before her classes start. Breathe :)

ETA: Just say NO to private loans. I have a good friend who went to a private, prestigious school and hit the federal cap early on - ended up with private loans and somehow they are no longer deferred even though he went on to get a masters. So, he's in school (on loans) and having to pay back his private student loans which puts a huge strain on his work/sleep/study schedule. It's a nightmare.