What loans can i get for my child to attend college, I have been denied , grants, and financial aid?

Question

What loans can i get for my child to attend college, I have been denied , grants, and financial aid?

Answer 1

I don't understand your statement about being "denied...financial aid", because financial aid is available to nearly every applicant. The only ways not to qualify for some form of financial aid is if:

You are applying for aid as a student from a school that is not a participant in the federal financial aid program

You are not a US citizen, or one of several other classifications of eligible non-citizens

You have defaulted on previous federal student aid

There is a lien against you (personally) for unpaid federal debt (most commonly, taxes)

You have already maxed out the total available financial aid

You are incarcerated

You have been convicted of more than one drug offense for a crime that occurred while you were simultaneously receiving federal aid funds

Financial aid comes in two primary forms, need-based assistance and non-need-based aid. Need-based assistance is provided to applicants whose financial circumstances qualify them as students with "exceptional need". The federal government uses one standard to determine "exceptional need", certain schools use a slightly more generous standard, especially if those schools have a lot of private, institutional aid funds of their own.

Unless you (or your son) were flat out denied financial aid because you fit into one of the categories above, you would have been offered at least non-need-based financial aid, which primarily consists of the government-created and guaranteed Stafford lending program. The Stafford Loan is the best educational loan that is available to anyone, anywhere, other than a personal loan from a wealthy grandmother.

If you're asking why should I be expected to borrow to finance my son's college education, then you need to think about where financial aid funds come from - and who bears the primary responsibility for paying for higher education.

Federal financial aid is taxpayer money - money designed to assist students and their families with the high costs of a college education. It's financial aid - not financial "we'll pay for college", and the "aid" indicates that the program is meant to assist. If you don't qualify for need-based aid, that represents a determination that your family's financial circumstances suggest that your son doesn't require all that much assistance from your fellow taxpayers - and that the primary burden is on you and your family to pay for your son's education.

Remember this - a higher education is truly an expensive, and optional choice for your son. Many parents believe (and rightfully so), that a college education is a wise investment in their childrens' future - and so they borrow, as necessary, to finance that investment. The taxpayers of this country support higher education through assistance, but very few (and only very poor) students get a "free" education from the taxpayers. If you choose to invest in your son's education by borrowing, that's a personal choice that you have made.

If your financial resources are limited (as is true for most of us), you and your son will need to choose a low or moderately-priced school that you can afford. Yes, an economics degree from the U of Chicago is "worth" more than a similar degree from your state school, but if you can't afford Chicago, another business degree will have to do.

Look into the parent's PLUS loan program, which is another government lending program, specifically for the parents of undergraduate students. Unlike the Stafford loan, the PLUS loan does require a credit check, so you will need good credit and income or a cosigner to qualify. Again, the PLUS program is better than any alternative form of educational lending.

If all else fails, look into the private educational loans. Stick with the well-known and reputable lenders, and be sure that you understand the risks inherent in a long-term variable rate loan. Again, you will need a good credit history and income to qualify.

I wish you and your son the best of luck.