$100K + income in 2011...not so much when I start Law School

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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USMCMatt
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$100K + income in 2011...not so much when I start Law School

Postby USMCMatt » Fri Feb 24, 2012 4:05 pm

My wife and I combined made very good money last year and will be in a similar income bracket this year as well. My FAFSA EFC was around 25K so it basically means nothing as far as aid. My wife is having our first child in two months and will not be working for quite a while after the baby is born. Obviously, as soon as law school starts, I will not be working.

My numbers are OK, but they aren't earning large schollys. I will certainly need loans.

Here are the questions...

1. Do I wait untill I know for sure what school I am attending before applying for loans?
2. Private vs public loans....thoughts?
3. Ask for a big amount up front, or one loan per semester?
4. Will a school's financial aid office consider information like what I stated above when they make their decisions?

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Ludo!
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Re: $100K + income in 2011...not so much when I start Law School

Postby Ludo! » Fri Feb 24, 2012 4:13 pm

Not very many schools give need based aid so your EFC doesn't mean anything unless you're going to one of the schools that does.

If you have good credit and can get better rates on private loans then it's something to consider. But private loans don't qualify for IBR so depending on quality of the school you're going to and/or what kind of work you want to do, it can be risky to have private loans.

With federal loans - you will get your aid package once you've decided on a school and are a couple months away from starting. Loans come at the beginning of each semester. I think the amount of EFC used to affect how much you could take out in subsidized v unsubsidized loans. But they don't do subsidized anymore so I'm not sure if it matters at all.

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USMCMatt
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Re: $100K + income in 2011...not so much when I start Law School

Postby USMCMatt » Fri Feb 24, 2012 4:17 pm

Ludovico Technique wrote:Not very many schools give need based aid so your EFC doesn't mean anything unless you're going to one of the schools that does.

If you have good credit and can get better rates on private loans then it's something to consider. But private loans don't qualify for IBR so depending on quality of the school you're going to and/or what kind of work you want to do, it can be risky to have private loans.

With federal loans - you will get your aid package once you've decided on a school and are a couple months away from starting. Loans come at the beginning of each semester. I think the amount of EFC used to affect how much you could take out in subsidized v unsubsidized loans. But they don't do subsidized anymore so I'm not sure if it matters at all.



IBR?

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rinkrat19
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Re: $100K + income in 2011...not so much when I start Law School

Postby rinkrat19 » Fri Feb 24, 2012 4:20 pm

USMCMatt wrote:
Ludovico Technique wrote:Not very many schools give need based aid so your EFC doesn't mean anything unless you're going to one of the schools that does.

If you have good credit and can get better rates on private loans then it's something to consider. But private loans don't qualify for IBR so depending on quality of the school you're going to and/or what kind of work you want to do, it can be risky to have private loans.

With federal loans - you will get your aid package once you've decided on a school and are a couple months away from starting. Loans come at the beginning of each semester. I think the amount of EFC used to affect how much you could take out in subsidized v unsubsidized loans. But they don't do subsidized anymore so I'm not sure if it matters at all.



IBR?
http://www.finaid.org/loans/ibr.phtml
http://studentaid.ed.gov/PORTALSWebApp/ ... sh/PSF.jsp

Also, some schools have programs (frequently called LRAP, but not always) that supplement IBR and PSLF for PI work.

bdubs
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Re: $100K + income in 2011...not so much when I start Law School

Postby bdubs » Fri Feb 24, 2012 4:31 pm

USMCMatt wrote:1. Do I wait untill I know for sure what school I am attending before applying for loans?
2. Private vs public loans....thoughts?
3. Ask for a big amount up front, or one loan per semester?
4. Will a school's financial aid office consider information like what I stated above when they make their decisions?


1) Don't worry about loans, unless your EFC is greater than the total cost of attendance for your school you will be eligible for loans to cover it.
2) You can look into private, but in all likelihood you will want to go with public loans. They have distinct advantages in terms of forgiveness and IBR, as well as fixed rates which almost no private loans have. I looked at using a combination of private and public, but the rates I was quoted from private lenders were atrocious (i have good credit).
3) If you're financing only part of your education than you will have this choice, but if you're financing the whole thing then the school will dictate how the loans are split up. I would recommend not borrowing until you need the money because of the high carrying costs of the loans.
4) Very few schools do a substantial amount of need based aid, so you don't need to worry about how much your EFC plays into the financial aid equation.




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