As we have discussed before do not put your self in a financial predicament over your children's college tuition. Especially, since you have been laid off.
The first thing you need to do is contact the financial aid office at your child school and let them know right away about your layoff. You may now qualify for student aid or student loans that you couldn't before now that your financial status has changed. Be aware there may not be money available at many schools, especially public universities. Many colleges are feeling the economic pinch just like everyone else is. But you never know unless you ask and there is a good chance you can still get extra help. Also, be sure your child has maxed out all available funds from Stafford loans. Stafford loans have a maximum interest of 6.8% that is fixed and is a very affordable way to pay for a college tuition.
Don't forget about the PLUS loan either. If you are still current on all your debts you can defer payment until your child graduate from college. As the economy continues to recover you should expect to working again some time soon. You and your child can then work on repaying the PLUS loan. Please, please remember to borrow what you can actually afford. You can go to the College Boards Web site and use the online calculator to see what the PLUS loan you take out will cost to repay. Do NOT take out this loan if you can not make them payments even after you go back to work.
I know you want your children to be successful, but please be honest with your children if you cannot afford to help them pay for college. This talk can be heart breaking for both of you, but if you can't do it...you can't do it. Do not put yourself in more financial hardship. An alternative may be for your child to go to a less expensive school or wait until the next semester and work for a while to help with the tuition costs.
Again I know this can be a very difficult topic to talk about with your child, but you have to do what you have do in these economic times. Taking out any debt of any kind student loan or not is never smart if it will cause you financial hardship. Do not take on more than you can handle.
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
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