Need Advice Regarding Child College Funding - Financing

[max2k10]

First of all, sorry for long post.

My daughter is a senior and will be going to college in the fall. She has been accepted to a local university here in NJ. Unfortunately, due to my income situation since I file fafsa jointly with my wife, financial aid is only providing $5500 between subsidized and unsubsidized. Total cost for school is @ $15K for the year. At the moment,the college itself is not providing any grants nor scholarships and we have not heard back from any of the other scholarships she has applied to.
Here is my dilemma. I'm waiting to be discharged on my 5 year chap 13 and uncertain if it will take another 1 to 4 months. (Last checks have been sent, Cure payment to mortgage also sent so we are pretty close to being discharged. I keep checking pacer for that Final Report).
This means I most likely can't co sign for any student loans. I have read in other posts about the Parent Plus loans. Should I still apply for the Parent Plus loan hoping I would be denied so that my daughter will be able to take out her own loans and have better options? (Note that my Experian credit report is already at 698 from a 525 a few years ago).

Or should I just wait to be discharged so by then I will be able to co sign with no issues?
When I called the financial aid office yesterday, I was advised to wait for the term billing which is provided in July. This will give me the breakdown and the exact amount of what will be owed. By this time, I believe I should be discharged.

Any suggestions? I have already informed my daughter that she is responsible for all her school loans. Of course, I will help as much as I can but I really do not want a school loan under my name coming right out of BK since I'm also planning on refinancing my home to lower my current interest rate.
Any advice will be very much appreciated!

[justbroke]

I would wait and see what happens. The Federal loans have annual limits for independent students. I'm sure you'll get that discharge and may be able to get a loan package that will work for you and your child.

[max2k10]

Thanks Justbroke for your quick response. I guess I just need to be patient and maybe waiting is my best bet. I want to make sure she has the best options when it comes to getting school loans.

[RetiredArmy]

I had to start my CH13 when my daughter was in high school and could not even think about how to fund her college years...... Move forward 3 years. Your child will be "JUST FINE"! as a matter of fact, she will be able to get financial aid because of your CH13 status because she will be considered "AN INDEPENDENT STUDENT"! If you CH13 is still active when she begins school, "REMEMBER YOU CANNOT ASSUME ANY DEBT" Parent PLUS LOAN is ASSUMING DEBT but you will qualify if you fill out the form.........We handled this by getting a letter from our attorney who stated that we were in a CH13 and BY LAW could not "ASSUME ANY DEBT". This letter was "HAND CARRIED" to the FINANCIAL AID OFFICE, they in turn made the necessary adjustment for our child's funding for school. Besides, we "LOVE" our BABIES but this can be another road to debt again for YOU! Put the "RESPONSIBILITY" back on your child and tell them that "AS LONG AS YOU MAINTAIN A 3.0 or HIGHER GPA and GRADUATE WITH A 4 YEAR DEGREE!" that at the end of their schooling YOU WILL ASSUME THEIR COLLEGE COSTS!

I did this with my child, she understands the mistakes that "DAD" made and has not only followed my advice, she has excelled in learning the "VALUE" of "GOOD CREDIT and MONEY MANAGEMENT"!

[max2k10]

Thanks RetiredArmy for responding. Speaking to financial aid yesterday at University, they suggested my daughter files an appeal to see if she would be considered for any grants or additional fundings. What I'm on the fence about is whether it will benefit my daughter for me to apply now due to my active BK so she can possibly qualify for additional fundings or just wait it out till final discharge. If all goes according to plan, I would guess we will be discharged by summer. Fall semester begins in September.

[RetiredArmy]

Definitely complete the FASFA ASAP! This is just one tool that the financial aid office will use. Your child will not be discriminated against for her parent's financial mess. As I have stated before, this is actually a better way for her to understand the value and cost of HER EDUCATION and FUTURE! You generally need to complete the FASFA between October and April. The website will extract your tax information.

[dmc-2008]

I was in the same boat. I would not even consider a parent plus as you are 100% redoonsible and your rate would be high.

my kid got over 25k in scholorship for private out of state but would still have to loan up to 20k more! I couldnt do it.

it killed me but I just could not do it to her or me!

in the end we decided on the most beautiful JC in So Cal and we are beyond pleased.

she still gets to move away and have that experiece but not so far that I cant see her! And she gets to play her sport and no loans or debt for the first two years!

if I had it to do over JC would have been our first pick.

good luck!!!!

[RetiredArmy]

Holding our College Bound Children FINANCIALLY RESPONSIBLE for THEIR EDUCATION and making a CONTRACT to pay their costs AT THE END OF GRADUATING SUCCESSFULLY with a 4 YEAR DEGREE and 3.0 or higher GPA is probably incentive enough for them to stay motivated and focused. Too many WILL drop out within the first 3 weeks of their semester and leave their parents footing the bill for THEIR LACK OF RESPONSIBILITY!

Time to break away from being a hovering parent and letting John or Jill learn a valuable lesson on how to handle their finances early on.