I need student loan advice for graduate school.

[punkin]

DD22 is looking to go to a masters program next year abroad (in the UK). She will need to take out loans so we will fill out the FAFSA, but the government limit on loans is just over $20k. She will need another $30k or so. How do we go about getting that? Her undergrad was paid for by scholarships and me, so her current outstanding student loan is only $5k. I've never had to deal with private loans (I guess I did in the ancient times when I went to school, but I'm sure everything has changed.) Any sage advice?

 

[robinb]

Are you sure that she won't receive more money from the school?

Edited out stuff that was wrong ...

Some families make monthly payments to unsubsidized loans while their kids are in school. They cover the interest so the loan doesn't blow up and get out of control.

In any case, YOU do not want to take loans out for her if you can help it. Parents Plus loans are the tool of the devil.

 

[tvguy]

Her University's Financial Aid office should steer you on the right patch.

 

[punkin]

No. There are no subsidized graduate loans. It's all unsubsidized. But these are direct from the government. There are private loans she could take out but I've not dealt with those. She does not qualify for any money from the universities as she will be an international student.

 

[robinb]

No. There are no subsidized graduate loans. It's all unsubsidized. But these are direct from the government. There are private loans she could take out but I've not dealt with those. She does not qualify for any money from the universities as she will be an international student.

You're right . I read it wrong. $20K won't cover much .

 

[FQLover]

Does the school offer graduate assistantships that she could apply for? I mentor my students wanting to go to grad school to only apply to programs that offer assistanships, but I don't know what is available internationally.

 

[Nebraska_Disney]

Many of the graduate students I hire (faculty member here) are not from the US and we pay them through GA's and RA's that include tuition remission. Going abroad as an un-funded grad student is possible, but make sure to investigate all avenues besides loans. After an RA or GA, I'd look for on campus jobs in a lab or something similar (depending on her field of study of course) these are also quite plentiful in most instances (STEM fields).

 

[punkin]

Many of the graduate students I hire (faculty member here) are not from the US and we pay them through GA's and RA's that include tuition remission. Going abroad as an un-funded grad student is possible, but make sure to investigate all avenues besides loans. After an RA or GA, I'd look for on campus jobs in a lab or something similar (depending on her field of study of course) these are also quite plentiful in most instances (STEM fields).

She's looking into all of these possibilities (not a stem field so no lab work) but I am doing the loan research and I want to be able to cover everything in the worst case with loans, including living expenses. Now I don't think that will be necessary actually because she will work and has savings, and we can supplement somewhat. I'm just looking for options right now.

 

[Needsanap]

I believe parent information is no longer used on the fafsa for grad school.

 

[martikus]

$55000 for one year of grad school? What is her future career that this is remotely a good idea? That is sooooo much debt. i am not a fan of going into debt to go abroad ever. get a cheap USA degree and then work abroad.

Assuming she is going to a college that allows federal aid .....and isn’t able to get a graduate assistantship...

she can get graduate plus based on credit (most will qualify if they don’t have bad credit). That payment can get repaid at same time as unsub loan. Or take out a private loan but may need a credit worthy co-signer. Both loans can be up to cost of attendance. The college will determine what the cost of attendance is.

 

[nolatravelgirl]

$55000 for one year of grad school? What is her future career that this is remotely a good idea? That is sooooo much debt. i am not a fan of going into debt to go abroad ever. get a cheap USA degree and then work abroad.

Assuming she is going to a college that allows federal aid .....and isn’t able to get a graduate assistantship...

she can get graduate plus based on credit (most will qualify if they don’t have bad credit). That payment can get repaid at same time as unsub loan. Or take out a private loan but may need a credit worthy co-signer. Both loans can be up to cost of attendance. The college will determine what the cost of attendance is.

I am with you. This better have some amazing job prospects that would warrant that much school debt. The OP mentions that it isn't a STEM field so I am struggling to see where this is going to be worth it.

 

[nolatravelgirl]

dupe

 

[punkin]

It's not $55k tuition. That's what I'm figuring for total cost, including London rents, but again, that's not my question. I was looking for any information about loan products.

 

[rockawaybeachgirl]

I'm not sure if things work any different for UK based programs, but after Government loans are exhausted, graduate students can take out graduate PLUS loans up to the stated cost of attendance of the program - so this includes room and board estimate, books, insurance etc. Info here: https://studentaid.gov/understand-aid/types/loans/plus/grad. The schools state COA on their website. You can use these loans for off campus housing up to the estimate of what on campus housing would be.

 

[Ctznkane525]

DD22 is looking to go to a masters program next year abroad (in the UK). She will need to take out loans so we will fill out the FAFSA, but the government limit on loans is just over $20k. She will need another $30k or so. How do we go about getting that? Her undergrad was paid for by scholarships and me, so her current outstanding student loan is only $5k. I've never had to deal with private loans (I guess I did in the ancient times when I went to school, but I'm sure everything has changed.) Any sage advice?

What's wrong with a private loan? As long as you get a good rate? For my wife's phd we did a 5 year variable, its like 2.5 percent right now. If you are nervous or need a longer term, do a fixed.

 

[punkin]

What's wrong with a private loan? As long as you get a good rate? For my wife's phd we did a 5 year variable, its like 2.5 percent right now. If you are nervous or need a longer term, do a fixed.

I don't know. That's why I was asking. People seem to want to keep away from private. I don't know why.

 

[barkley]

I don't know. That's why I was asking. People seem to want to keep away from private. I don't know why.

for many it's b/c the private do not offer the 'protections' that gov. backed do. they are akin to a traditional loan of any nature (car, home, unsecured) and do not automatically offer options if the borrower becomes unemployed, underemployed or disabled. gov. backed loans can be entirely discharged with no negative ramifications in some extreme situations (like total disability-rare situation? yes, but if it happens it's comforting to have vs. bankruptcy which still won't discharge the student portion of mounting debts during an already horrific life experience).

i think for many today the covid situation has been an awakening about the shortfalls of private student loans b/c the media says 'all payments/interest has been stopped on student loans' when that's only the case with the government backed-the private loans are still accruing interest, still due and payable.

 

[StitchesGr8Fan]

Is you or she take out private loans, you better be darn sure it is worth it, because they won’t go away until you lay them off or die. They stay in bankruptcy.

 

[ashley0139]

There are grad plus loans for the additional above the $20k per year. They are still federal loans.

 

[justadreamaway77]

Just a thought, but what if she puts off going to grad school for a year and works to save the money? I know in this day and age, immediate gratification is expected but sometimes the stuff we wait for is the best! She could live at home, save as much money as possible, and go the next Fall.