Our goddaughter Abby is a senior in high school and has applied to a number of colleges. Unfortunately, neither she nor her family have the financial resources to support her in her pursuit of a degree. Her mother (custodial parent) is disabled, with her sole income being Social Security; she does have some money in an IRA, but it is woefully insufficient to support her in her later years. The mother rents her home, and has a fair amount of debt she is gradually repaying. Her father works, but is not making a lot of money, and has clearly stated he will not support her in any way with her higher education.
Abby recently received a financial aid package from a school she would like to attend, though she is not ready to commit to that school. The good news with this offer is that it covers 100% of the Cost of Attending the school, with apparent recognition she has no resources. The bad news is, more than half of the offer is in the form of a a Direct Parent PLUS Loan. This loan requires a credit check, and it is unlikely her mother’s credit rating will be high enough to qualify for the loan on her own, though it is possible to get the loan with a co-signer. Under the terms of the loan, interest begins to accrue immediately at a rate of about 7%. There is no way the mother can afford the monthly payments, even if she could get the loan.
We have been a part of Abby’s life since she was born, and would like to help her with her education expenses, with limitations. We are unsure how to do this, however, and not negatively affect the level of financial aid she qualifies for/receives, if that makes any sense. Assuming this aid offer is representative of offers she will receive from other schools, we have considered being co-signers on a PLUS loan, but don’t know what impact that might have on determining her need, and her mother might not allow that.
Does anyone have any ideas how we could best help Abby with her expenses?
Abby recently received a financial aid package from a school she would like to attend, though she is not ready to commit to that school. The good news with this offer is that it covers 100% of the Cost of Attending the school, with apparent recognition she has no resources. The bad news is, more than half of the offer is in the form of a a Direct Parent PLUS Loan. This loan requires a credit check, and it is unlikely her mother’s credit rating will be high enough to qualify for the loan on her own, though it is possible to get the loan with a co-signer. Under the terms of the loan, interest begins to accrue immediately at a rate of about 7%. There is no way the mother can afford the monthly payments, even if she could get the loan.
We have been a part of Abby’s life since she was born, and would like to help her with her education expenses, with limitations. We are unsure how to do this, however, and not negatively affect the level of financial aid she qualifies for/receives, if that makes any sense. Assuming this aid offer is representative of offers she will receive from other schools, we have considered being co-signers on a PLUS loan, but don’t know what impact that might have on determining her need, and her mother might not allow that.
Does anyone have any ideas how we could best help Abby with her expenses?