Need advice on Sacramento job market in order to continue education (low income, rent)

[Sacramento_Student]

Hello,

I have been put into a serious bind and I don't know how to get out of the situation I am in, my education is on the line at this point. I really need to find a part job soon. I am hoping it will be within the engineering or business industry as any position.

I am a mechanical engineering and business management major. I also have a minor in a foreign language.
I am looking to call into some companies starting Monday in hopes of determining if I could find something in west sac or Sacramento.

I have never taken a big loan out and I I have been able to remain debt free up till how.
Next year, I will need about $37,000 to complete my education and I am in need of loans. I have applied to FAFSA and I know how i much I will have for this year and next.

I have about $7500 saved up which I will use solely for my education; however, even after FAFSA I will need about $20,000 in loans from banks. However, I don't know if I need a cosigner or not.
-I have had a card for 4 years and I have consistently used it
-paid it off the next month, always paid more than minimum, and ensured that I would not have any outstanding debt.
-I have made about $8000 from internships and never had a loan (so debt vs income ratio should be good)
-credit score is for sure over 700.

I have talked to the financial adviser at my university and she has stated that I should talk to the bank first before taking fafsa. If I take fafsa first, then I will have to show that I accruing debt on my social and hurt my chances of getting loan from the banks.

I am 100% certain I am nearing my time to dropout; however, I want to give one more push towards a loan and for that I am looking to work a few months (which will be tough for me) and then find a loan.

Is there any guidance you can provide me? I am in desperate need of some help.

[2sleepy]

You didn't say what school you are going to, but 37k for a year seems high if you are going to Sac State. How have you been paying for your education so far? If you are low income have you applied for a Pell Grant?

[Sacramento_Student]

@2sleepy

I have been able to stay with parents and commute; however, that is no longer an option. Sac State is about $17,000 per year if students live off campus (their estimate).

If I slow down and work, then it will take longer and cost more. The $37,000 is a 2 year cost with $3,000 in emergency. It will allow me to focus and complete my studies as fast as I can.

[2sleepy]

Originally Posted by Sacramento_Student

@2sleepy

I have been able to stay with parents and commute; however, that is no longer an option. Sac State is about $17,000 per year if students live off campus (their estimate).

If I slow down and work, then it will take longer and cost more. The $37,000 is a 2 year cost with $3,000 in emergency. It will allow me to focus and complete my studies as fast as I can.

Total fees and tuition for Sac State is slightly under 7k a year. You could rent a room near the campus for $500 -$600. If you have little or no income you would qualify for food stamps. The maximum pell grant is $5815 and there are also cal grants.

I'm pretty sure you can devote adequate time to your studies if you limit your outside work to 15-20 hours a week. I think you need to go back to the financial aid office and explore some of those options. I hope you are not using money as a way to talk yourself into dropping out, one of my son's did that and it took him another 10 years to finally get around to getting his degree, he regrets it to his day.

[RosieSD]

Sacramento_Student,

I've sent you a private message with some questions regarding your financial aid award. Please check your email box. I'm not going to ask those questions here, because the questions involve information it might not be wise to share publicly.

However, in general terms, I agree with 2sleepy. It probably isn't the smartest plan to drop out entirely so close to finishing your degree.

A lot of people are afraid of taking student loans, but IF you use them wisely, they can be a better way to finance your education than dropping out and trying to earn enough to pay for costs that way.

One thing I would strongly advise is that instead of just looking at the total amount of loans, you also look at the repayment cost of the loans and decide if it will be managable after you graduate.

For instance, $20,000 in Federal unsubsidized student loans works out to $230 a month in repayments after graduation. That's about the same as a modest new car loan, and should be manageable on a mechanical engineer's salary. In fact, even if you ended up working at Starbucks, you'd probably be able to pay off $230 a month.

When I worry is when I see students taking out $50,000 or $60,000 or more in high interest BANK loans without looking at the monthly repayment or what they reasonably can expect to earn in the years right after graduation. That's where people get in trouble with student debt --- borrowing without thinking through their plan for how they will repay.

So, what you need to do before you decide to drop out is find out the repayment costs of the types of loans you are being offered, research what you can realistically expect to earn right after graduation, and then figure out how much student debt makes sense.

Anyhow, check your mailbox, and if you feel comfortable talking more about your situation, I'd be happy to point you towards some resources and information to help you figure things out.

[RosieSD]

Originally Posted by Sacramento_Student

I have talked to the financial adviser at my university and she has stated that I should talk to the bank first before taking fafsa. If I take fafsa first, then I will have to show that I accruing debt on my social and hurt my chances of getting loan from the banks.

Just want to comment on this specifically. The financial aid advisor either gave you horrible advice or you misunderstood the advice she was giving.

When borrowing for college, you ALWAYS want to take any Federal student loans you are eligible for FIRST, before turning to a bank for loans.

Federal student loans -- especially subsidized Federal student loans -- will always have more favorable interest rates and repayment terms than bank loans.

There's also a bit of a catch with dropping down to below half time status in school in order to work full time. First, that will affect your eligibility for subsidized Federal student loans. And, second, your income will count against your financial aid eligiblity for other forms of financial aid going forward. So, it is a tricky balance.

So, I agree with 2sleepy: perhaps you need to make an appointment with another financial aid advisor. I'd also suggest that you do some reading on student loans before that appointment. Here are a few good starting points:

https://studentaid.ed.gov/sa/types/l...ed#eligibility

FinAid | Calculators | Loan Calculator

[SacraNative1977]

My advice is to just find a job and work.

If you can't afford school, then don't go.

Go back to school when you can afford to go.

Work, save, and then go to school.

[Oh Me]

This isn't ideal, but I lived in my car for the last semester to get through school. Had access to gym showers, a good friend that gave me her meal card, and just spent a lot of time in the library basically. Those 4-5 months weren't easy, but I'm so glad I didn't give up on my degree.