No grants for my child at UC Irvine - Parent Plus loans vs 401k withdrawal?

Parent Plus loans dont have a limit except for cost of attendance minus other aid. But they're at like 8.05% interest which is INSANE. Also they start accruing interest right away while your kid is still in school. We took them out for my son at UCLA and regret it big time.

Speaking from experience with three kids through the UC system, Parent PLUS loans technically have no aggregate limit, but they're capped at the cost of attendance minus any other financial aid received. So in your case, that would be approximately $34,450/year ($40,000 - $5,550). Regarding your 401k, I'd strongly advise against this as a first option. While you can take hardship withdrawals for education expenses, you'll face: - 10% early withdrawal penalty if you're under 59½ - Regular income tax on the withdrawal amount - Permanent reduction in retirement savings Have you considered these alternatives? 1. Ask UCI's financial aid office for a professional judgment review based on your current year's income (especially if that bonus was one-time) 2. Look into private loans with a cosigner that might offer better rates than Parent PLUS 3. Community college for 2 years with guaranteed transfer to UCI (saves ~$40k) 4. Appeal the aid package directly with UCI - sometimes they have institutional funds they can offer

WE DID THE PARENT PLUS for my son at UCSD and its literally DESTROYING our finances!!!! Been paying for 3 years and the balance has barely moved. My advice - DON'T DO IT unless you make serious $$$$. Wish we'd pushed him to go to community college first. Now were stuck with like $118000 in debt and he still cant find a job that pays enough to help.

I've been in your exact situation with my son who just finished his second year at UCI. What worked for us was a combination approach: 1. First, we had him apply for every private scholarship he could find - he ended up getting about $5k/year from various sources (local rotary club, my employer's foundation, etc.) 2. We did take out Parent PLUS loans, but only after negotiating with UCI. Many people don't realize you can actually negotiate with the financial aid office! We provided documentation of our actual financial situation and they increased his institutional aid. 3. He's working part-time during school (10 hrs/week) and full-time every summer 4. We're making interest-only payments on the PLUS loans while he's in school to prevent them from ballooning Don't tap your 401k if you can avoid it - that's a last resort option. The compound growth you'll miss is substantial. Before doing anything, call UCI's financial aid office directly to discuss your situation. They sometimes have institutional funds they can access that aren't part of the federal aid process. I spent three days calling the Federal Student Aid helpline trying to get through before finding Claimyr (claimyr.com). They got me connected to an agent in under 15 minutes - totally worth it. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ

my niece got into berkeley and UCI and we had the same issue. ended up going to cal state fullerton instead and saved like 100k total. shes doing great and got interships just like her friends at UCI. just saying maybe consider other schools? is UCI really worth decades of debt??

Financial aid counselor here. A few important things to note about your options: 1. Parent PLUS loans have no aggregate limit beyond cost of attendance minus other aid, but require a credit check. The current fixed interest rate is 8.05% with a 4.228% origination fee. That's significant. 2. 401k withdrawals for education expenses avoid the 10% early withdrawal penalty, but you'll still pay income tax on the withdrawal amount. The bigger issue is the lost retirement growth. 3. Have you submitted the CSS Profile? UC schools use it for institutional aid that doesn't show up on your FAFSA-based package. 4. Most importantly, request a professional judgment review based on your current income situation if it's changed from what was reported on your 2023-2024 FAFSA (which used 2021 tax info). This is your best immediate option. 5. Consider having your student appeal directly to the biology department - sometimes departments have their own scholarship funds for promising students.

Thank you all for the helpful responses. I've decided to: 1. Call UCI's financial aid office on Monday to request a professional judgment review based on our current income 2. Have my daughter apply for additional private scholarships (even though it's late in the cycle) 3. Look at the Parent PLUS loan as a backup option, but only after exploring all other avenues 4. Schedule a family meeting to seriously discuss whether a less expensive option might be better long-term I really appreciate all the insights - especially about the compound growth loss from touching the 401k. That was probably my worst idea and I'm glad you talked me out of it!

As someone who just went through this process with my daughter last year, I wanted to add a few things that really helped us: 1. Don't overlook your state's 529 plan tax benefits if you have one - we were able to redirect some savings and got a state tax deduction that helped offset costs. 2. Ask UCI about payment plans! Many schools offer interest-free payment plans that let you spread the semester costs over 10-12 months instead of paying lump sums. This can help with cash flow while you figure out financing. 3. Have your daughter check if UCI has any work-study programs specifically for biology majors - lab assistant positions, tutoring, etc. These often pay better than regular campus jobs and give relevant experience. 4. Consider having her take a gap year to work and reapply with better financial circumstances if the professional judgment doesn't work out. I know it's not ideal, but sometimes the extra year of income documentation can completely change your aid package. The fact that you're thinking this through carefully instead of just signing loan papers shows you're being responsible. Too many families get trapped in debt they can't handle. Your daughter will appreciate having parents who helped her avoid that trap, even if it means adjusting expectations initially.

I'm in a very similar situation with my son who got into UCSD - almost identical aid package with just the unsubsidized loan. One thing that's helped us is reaching out to UCI's biology department directly (not just financial aid). I called the undergraduate advisor and explained our situation, and they connected us with a professor who mentioned some research opportunities that come with small stipends. It's not huge money, but every bit helps. Also, I've been using a spreadsheet to calculate the true cost of each financing option over 10+ years. The Parent PLUS loans look manageable monthly, but when you factor in that 8% interest compounding over a decade, it's honestly terrifying. A $35k annual loan becomes over $200k in total payments by the time it's paid off. Have you looked into whether your employer offers any education assistance programs? Mine has a small grant program I didn't even know existed until I asked HR directly. Sometimes companies have funds they don't advertise widely. The hardest part is watching our kids' dreams potentially get crushed by financial reality, but I keep reminding myself that there are multiple paths to success in biology. The school name matters less than the opportunities your daughter creates for herself.