I will be a college freshman, 18 years old. (Prospective engineering major, may have a child in 7-8 months) I would like to financially independent from my parents (i do not have any joint accounts/ credit cards with them). My options are: be financially independent or depend on parents who can pay the 10116.
This is the total price of my college, per semester (after scholarships): 5508. Per year, 10116
This is the total price after work study. 4369. Total price per year: *8738*
(The numbers account for tuition, course fees, room, and meals. I have not accounted for books, other living expenses, travel, etc.)
If I qualify as a dependent, I can get 5500 in unsubsidized loans. So each year would be 10116-5500 = 4616 that I have to make up from my pocket (or jobs). At the end of graduation (hopefully 4 years) my loans will amount to about 25K. (5500 compounded monthly for 4 years plus 5500 compounded monthly for 3 plus 5500 comp. for 2 plus 5500 compounded for 1, all @ 4.66% rate). I assume unsubsidized means the money capitalizes while still in school.
If I qualify as an independent, PELL Grant is 5700 so 10116 - 5700 = 4416.
I may need to pay 4416 dollars every year. If I have work study, its about 2000 (10116 - 8738) per year. That may mean loans. If I can qualify for Federal Subsidized loans then 2000*4 years =8000 that I will have in debt when I graduate ONLY IF the interest doesn't capitalize while I'm still in school. If it does then, 2000 comp. for 4yrs, etc so 9K debt at the end of four years.
A few questions:
I REALLY want to be financially independent... What does CC advise?
Is this something I should be comfortable talking to my school's FinAid department? What do I ask the school? Where can I find professional advise?
Will I be able to qualify for "independent status" under FAFSA for example if parents dont pay more than 50%, i have a child, etc?
I am not in the military, not homeless not orphan, etc.
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