Applying for Financial Aids for Kids

If you followed some of my previous posts, you would know that I am a small time businessman who is blessed with quite a bit of resources.  With that, there comes with a host of responsibilities, chief of which are the two college tuition and one private high school tuition that come online this fall.

Yes, I am blessed with three wonderful kids, two of whom are going to college this fall, at the same time, and the youngest is going to a private high school in town.  Being a blogger, I am engaged to share my experiences with financial matters but do not want to subject my family to any harm because of my blogging, so please allow me not to disclose details such as the names of the schools they are going to.

Otherwise I am quite open to share.  For now it is sufficient to say that after I did the math the other night, the Total Cost of Attendance for the three kids’ education expenses is $135,000 for the 2013 and 2014 school year. 

No, I do not have that kind of money saved somewhere.  Even if I do, the businessman side of me is still going to find a better way to finance their education.  I am only sending kids to college, but not getting bankrupt in doing so.

The other day, when I was talking to my kids about the fact I am handling their financial aid applications, my college-bound son challenged me and claimed that we should let the people who need aid more have the aid.

He certainly has a noble heart.

Now if only he can also back it up with some noble means!

For his school, the total Cost of Attendance is $47,650 per year.  The school is kind enough to give him a scholarship of $23,000 per year, renewable for four years.  He got the scholarship because of his good grades and SAT scores.

That leaves a Net Cost of $24,650.  That is the money we have to come up with somehow.

So I explained the difference between a loan and a grant, and the fact that eventually one has to pay the loan back. In theory, the government or institutional lenders can create as much loan as that is applied for, so there is really no limit. In other words, we are not depriving other people of the opportunity to borrowing money.

That lightened his noble heart a bit. 

Today we received the financial aid package from my son’s school.  Aside from the $23,000 scholarship, the school listed under “Self Help Options for 2013-2014” the following:

  1. Federal Direct Unsub Stanfford Loan $5,500
  2. Federal Direct Plus Loan $19,150.

Time to do some research! What is “Federal Direct Unsub Stanfford Loan” ? and what is “Federal Direct Plus Loan”?  Should I take the offers?

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