Random Thoughts Again

[Blue&White]

Seriously, dude. Unless things have changed dramatically in the last 15 years, you're not getting squat. At least not from the Feds. They sent me a nice letter after I filled out all the FAFSA paperwork. As I recall, it said something like "Go pound sand up your bum."

Not trying to be a jerk. Just don't see any point in blowing smoke up your skirt.

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And last (but not least) a big "congrats" to B&W Jr.

So, I was just playing around with the FAFSA sight. When I checked to see what they predicted I would get, they directed me to that very photo of Ted Knight as Judge Smails. Pretty discouraging.

Actually, what they say is that I should be eligible for Direct Stafford Loan of $5,500.

Ooooh. A loan. Be still my beating heart.

[psu_dad]

I wasn't expecting the Feds to GIVE me anything. But I naively thought that after decades of bending me over my desk every April 15th and having their way with me, they would at least offer me a loan to cover tuition. And I would have faithfully paid it back with interest. Instead. they offered a $1200 loan. I swear to God. A loan to cover less than two weeks at Penn State.

How can the Big Boss at FAFSA allow that to happen? How can they not send out a memo saying "Jeezus H. Krist. A $1200 loan offer? That can't happen. We can't send someone the federal government has been sodomizing every April for decades such a poorly-disguised Eff You letter. Just send them a "Sorry" letter and be done with it. What's the point of adding insult to injury?"

But, nope. They went with Eff You.

[Blue&White]

To be honest, I'm not sure the feds do you any favor with those loans. You are better off with private loans. The federal loans can't be removed. They are like the description Kyle Reese gives of the terminators in the original movie. Just replace "until you are dead" with "until you pay back your loans" and that is spot on talking about the government student loan program. People get buried by those things. The private loans, I believe, can at least be discharged in bankruptcy. Not 100% sure about that.

The reality is I'm going to have to borrow some of this. My goal is for my son to walk out with ~$40k or so. That's manageable. And, I'll help once he's out. A $40k student loan over 20 years should be in the $250/month range. Hopefully he doesn't need loans for grad school but I'll deal with that when we get there.

It should not cost this much money, though. These kids should not be coming out with so much debt they can't start their lives. It's not a good long term thing for them or for the country. We are all going to pay for this at some point.

[psu_dad]

Well. you and Nat are going to pay for it. Lama and I will be spending our SS checks on Tommy Bahama shirts and lap dances. So there's that.

I was fortunate, to the extent that laying out 200K+ total for two kids is fortunate, I had a lot of equity in my home and mortgage rates dipped the Summer before my oldest son's freshman year. I re-financed to a 15-year mortgage with an ELOC and used that to pay for both sons. I've since paid that off.

[Blue&White]

I've considered paying for college with the equity in my house, but I'm a but nervous about doing that. Especially with rates rising. I think I'm going to get them through the best I can and maybe at the back end I use the house to take a chunk out of their college loans.

I keep going back and forth on this, though. If interest rates weren't going up it would be a no brainer. Alas.

[Carl Spackler]

We ended up refi'ing our mortgage to economize the college loan (we didn't get any freebies either and I was out of work, headed for disability, they are all heart) BUT, we were able to grab a 2.5% fixed rate 15 year loan at the time which we now have nearly paid down by 45% of the principle. If all goes well, to plan, I have a small retirement that will begin this summer which will all be used as principle pay down to cut us to a little over four more years and done, maybe a couple of years before selling and moving back to PA.

Our timing was fortunate with the interest rates. The regular folks don't get a break in college payments from big brother, when do we get a break from big brother? If our situation couldn't draw some money you guys don't stand a chance.

The other factor is how much you plan to borrow and pay off later. If it is significant a refi won't be sufficient. Ours was for the last two years and the last year was more economical for some reason I can't remember now. It paid off though, the son was traveling in Italy last week on vacation with the wife to a wedding in a vineyard, who rents a vineyard for a wedding, $$$$$, that's who. He runs with a pack way over our heads.

[Blue&White]

"Take your stinking paws off me you damn dirty ape!"

Well, not quite, but we are well on our way to that, apparently. It's the inevitable next step.

[Blue&White]

We ended up refi'ing our mortgage to economize the college loan (we didn't get any freebies either and I was out of work, headed for disability, they are all heart) BUT, we were able to grab a 2.5% fixed rate 15 year loan at the time which we now have nearly paid down by 45% of the principle.

Wow. That's an amazing rate.

I refinanced for 15 last March at 3.5%. I didn't want to as I was at 3.5% on a 20 year and was 5.5 years into it. But, I had taken a bunch of cash out on an home equity loan to pay for renovations on the house. The variable rate on that was going up and up and up AND the super terrific tax cut took away the tax break on the equity line. So, between those two factors I just consolidated the entire thing into a new 15 year mortgage at 3.5%. And, I'm really hestitant to touch that. I have a definitive path to get out of my mortgage (albeit just after my 64th birthday - but still).

I'm going to get my kids through school as best I can and borrow what I need to borrow. 7 years from now, when they are all done, maybe I'll take out some equityon the house and wipe all or most of it out. But, right now, I just can't bring myself to do it.

I'm also debating if I should refinance my wife's studnet loans. I think I've decided I have to but just need to find the time to deal with it.

[psu_dad]

I just consolidated the entire thing into a new 15 year mortgage at 3.5%. And, I'm really hestitant to touch that.

I wouldn't touch that with a 10-foot pole. That may end up being one of the best deals of your life.

[sameoldlama]

I'd like to hear more about those lap dances - specifically the where and the when