FAFSA shows $20k EFC for my daughter - how do we handle the gap with loans?

First, take a deep breath! This is a common situation. You have several options to cover that gap. Yes, you'd need to reapply for FAFSA each year, and loans would need to be requested annually. Here's the typical approach: 1. Federal Direct Loans (in student's name) - She qualifies for these regardless of credit. First-year students can typically borrow $5,500. 2. Parent PLUS loans - These require credit approval and can cover up to the full cost of attendance minus other aid. 3. Private student loans - These are credit-based and often require a cosigner. If you're denied for PLUS loans due to adverse credit, your daughter would become eligible for additional unsubsidized federal loans (usually an extra $4,000 for freshmen). I'd suggest starting with the financial aid office at her school - they often have institutional scholarships or payment plans that can help bridge the gap.

omg I was in the EXACT same boat last yr!!! my SAI was $18k and i nearly had a heart attack. ended up doing a combo of scholarships + parent plus + i got a work study job. definitely apply for EVERYTHNG even small scholarships. they add up!!

I'd be VERY careful with Parent PLUS loans!!! The government will give them to almost anyone with halfway decent credit, but they can become a MASSIVE burden. Interest rates are higher than direct student loans (currently 8.05% vs 5.5%), and there are origination fees too. I know too many parents who got trapped with $100k+ in PLUS loans they can't pay off. Your daughter should max out her federal loans FIRST because they have better terms and forgiveness options. And make sure she knows exactly what her monthly payments will be after graduation based on her expected salary in her field!

have you thought about a community college for 2 years then transfer? saved us like $40k

I spent WEEKS trying to get through to someone at Federal Student Aid to ask about our loan options after getting a high SAI. Calling the regular number was useless - always disconnected or 3+ hour waits. Finally I discovered Claimyr.com and it was a game changer. They got me connected to an FSA agent in about 20 minutes! The agent walked me through all our options including how to appeal the SAI based on special circumstances. You can see how it works in their video: https://youtu.be/TbC8dZQWYNQ Definitely worth it for getting actual answers instead of guessing.

A $20k SAI doesn't necessarily mean you'll pay $20k out of pocket. Many schools don't meet full need, but some do! What school is she considering? Private schools often have more institutional aid. Also, your SAI can change year-to-year based on your finances, number of kids in college, etc. Having multiple children in college simultaneously significantly lowers each child's SAI. One strategy: if she's dead-set on this school, consider having her take a gap year to work and save money, while applying to more schools with better financial aid policies. Many schools with high sticker prices actually end up being cheaper after institutional aid.

why is ur EFC so high lol do u make like 200k or somethin

Since your daughter is going into nursing, look into these specific options: 1. The Nurse Corps Scholarship Program - covers tuition and fees plus a monthly stipend in exchange for working in a critical shortage facility after graduation. 2. Hospital tuition reimbursement - Many hospitals offer to pay a portion of nursing students' loans if they commit to working there after graduation. 3. Income-driven repayment plans for her federal loans - These can make monthly payments more manageable. 4. Public Service Loan Forgiveness - If she works for 10 years in a qualifying public service job (many hospitals qualify), remaining federal loan balances can be forgiven. Northeastern is expensive, but their nursing program has excellent outcomes, which can justify higher initial costs if she utilizes these programs.

My daughter got a similarly high SAI, and we appealed it! Many people don't realize you can submit what's called a "Professional Judgment Request" to the financial aid office explaining special circumstances. We had medical expenses that weren't reflected in our tax return, and they adjusted our SAI down by $8,000! Doesn't hurt to try.

Another thing to consider: the $20k SAI doesn't necessarily mean you need to come up with $20k in cash. It means the financial aid formula thinks your family can contribute that much through a combination of: 1. Current income (about 22-47% of your available income) 2. Student's income (50% above a protection allowance) 3. Parent assets (up to 5.64% of non-retirement assets) 4. Student assets (20% of assets in student's name) Many families use a combination of current income, savings, PLUS loans, and payment plans to cover their SAI. The financial aid office can help you develop a 4-year plan that might make this more manageable.

You're definitely not failing her - navigating college financing is overwhelming for almost every family! One thing that helped us was creating a spreadsheet to map out all four years. We included potential salary increases, the younger sibling starting college (which will lower your SAI significantly), and different loan scenarios. Also, don't forget about tax benefits! The American Opportunity Tax Credit can give you up to $2,500 back per year for qualified education expenses, which effectively reduces your out-of-pocket costs. Since you're waiting on scholarships until June, use this time to research everything mentioned here - the Professional Judgment Request, nursing-specific aid programs, and maybe even reach out to Northeastern's financial aid office to discuss payment plans. Many schools will work with families, especially when the student is in a high-demand field like nursing. You've got options, and it sounds like your daughter chose a program with great career prospects. Take it one step at a time!

I just wanted to add that you should also look into whether Northeastern offers any monthly payment plans! Many schools let you spread that $20k over 10-12 months instead of paying it all at once each semester. This can make it much more manageable from a cash flow perspective. Also, since you mentioned waiting on scholarships until June - don't forget to keep applying for scholarships even after she starts college. There are tons of scholarships specifically for nursing students in their sophomore, junior, and senior years. Some are even easier to get because fewer people know about them or apply. One more tip: if you do end up taking Parent PLUS loans, you can often get a small interest rate discount (usually 0.25%) by setting up automatic payments. Every little bit helps when you're dealing with these amounts over 4 years! You're being such a supportive parent by researching all these options. Your daughter is lucky to have you in her corner figuring this out together.