Stay In College?

What To Do?

The authors of some articles suggest that anyone can accommodate a budget to fit their needs and successfully reduce debt without drastically changing their lifestyles. I am a mother of four young children (all under 10) and am married to a wonderful, dedicated and hard-working man. I'm also attempting to go to college full-time. We have two children who require part-time childcare while I attend college. This amount takes up most of my student loan money, which I will eventually have to pay back.

The problem we now experience is that even with tightening our belts and squeaking by on everything where we can, we still do not have enough money at the end of each month to eat without putting our grocery bills on credit. We are over-extended. We have had two cars "die" in the last year (after more than $6000 in repairs for both) and have exhausted all known resources to get ourselves out of this financial rut.

I need a clear-cut, simple and precise answer where I will see results quicker than 10-15 years from now. I am going back to college because the inevitable chore of sending four children through college will soon be upon us. I quit working six years ago to stay home to raise my children and our debts have only grown. I am frustrated and tired of trying to figure out what to do.
DW in PA

Need Second Income

I just felt I HAD to write in response to DW's letter. I really sympathize and understand what she is trying to do. She and her husband sound very goal oriented, and it is wonderful that she made the commitment to stay at home, raise her children and now, try to finish her degree.

I think you gave her very credible advice. BUT she sounds desperate, and I can relate to her situation. Sometimes, one income just can't be stretched any further and she sounds like she is doing everything she can. One simply doesn't have enough money if you have to buy groceries on credit.

If I may suggest something, I feel it is time for DW and her husband to face the fact that with 6 people in the family, one income is not enough. I would suggest she look at alternatives for employment--there are many jobs where an individual can work at night or part time, that would not take her totally away from the home. I live in a town of 6,000 and I have friends who make between $400-500 per month cleaning commericial buildings at night or house cleaning for others. I have done restaurant work only at night in order to stay at home with my children in the past. Other options may include babysitting for a few children in the home; doing newspaper delivery (usually early in the morning); taking inventory at stores; re-stocking cards/makeup for companies; telemarketing. In my small town, there are all these options and more. It is obvious DW needs to bring in a little more income to make the ends meet. And it is amazing what a difference a few hundred dollars can make in budgeting.

I think it is sometimes hard for people to see that they have to take a more circular path to reach their goals. Maybe she really doesn't want to work outside the home--then, do part time work for as long as it takes to get out of debt or until the major breadwinner gets a raise, etc. And as for her college classes, I would again re-adjust my goal---forget about the school loans, and just take one class at night each semester until the kids were in school fulltime. Yes, you may have to adjust the time span for your degree, but then you could accomplish it without so much debt.
Patricia H.

Delay Loan Payback

If I am understanding her correctly, she is not currently paying to go to school out of pocket -- she is relying on Student Loans and other aid. The way this works is that a student's loans are deferred until the student has either dropped below half time or has left school for whatever reason. When a student is no longer attending at least half time, their loans go into repayment. As long as the student is attending school, no payment is due. In addition to this, cost of attendance used to determine how much aid a student is eligible for includes housing and room and board, which are usually much higher figures for off campus married students. Therefore, she is probably getting a good bit more from her student loan than just what she needs to pay her school bill. Here is where it gets tricky. If DW leaves school to stay home with her children full time, even though she will be eliminating her day-care expenses, she will have to begin repayment of her student loans. Depending on how much she has borrowed over the course of her education, this can total well over $200 per month. And, currently, the repayment interest rates on student loans are at the cap -- 8.5%. Next July this will be re-calculated. I suppose what I am trying to say is that, even though she is acquiring deferred debt, she probably doesn't have any school expenses coming out of their immediate income other than day care whereas quiting school would bring about repayment of student loans and would possibly put them into a worse financial bind. If you have any questions about the loans or other student aid, please feel free to give me a call. Just thought it might be food for thought. I love your newsletter and have forwarded it to several friends!
Susan C.

Go Slowly

When I went back for my MLS I was a single mom with a school age daughter. I took one class a semester at night. Instead of a year and a half, it took almost 4 years, but it was less painful on the budget. I worked full time just about minimum wage. For child care she went to spend the night at her best friend's home each week. In return I made a dessert or a batch of cookies for her to share with her temporary family. I also was able to find someone to commute with for two semesters, to further reduce the cost. Another benefit, since I was taking only one class at a time, I could devote 6 other evenings (or portions thereof!) for homework. My grades were the best of all my college grades. Advice? Night class. Barter child care. Postpone college for self until kids in school.
Pam

What About Grants

I read the answers to DW'sdilemma in reference to getting her budget under control. You suggested putting off college until they were able to manage financially. I noticed that she had college loans, but no mention was made of her having applied for grants( non-repayable college funding) . There are a number of grants and sometimes scholarships available to people with lower incomes. The Pell grant is one. I suggest that before she give up her education dreams, that she check into these.
Miki

Go to School On-Line

I enjoyed your response to DW on how she needs to prioritize in order to make ends meet. Another thought you might forward to her is on education. There are on-line, fully accredited degree programs. I am in a graduate program offered through the University of Phoenix and have found it to be very challenging. The benefit of the program is that you can get the degree and never leave your home. They offer undergraduate degrees in business and several MBA programs. I highly recommend it. In addition, they offer the same financial aid programs that any local university offers so if DW is able to get the same aid through the University of Phoenix she could get the degree, stay at home and cut her daycare costs.
Carl W

Work at College?

Here is a suggestion for DW in PA. How about working at a college or university in your area?

I worked at a major university for 12 years and the benefits were incredible!! I went to school for free!! I worked 35 hours /week and was able to take up to 3 classes a quarter for free. They also have a day care center which is paid for on a sliding scale (i.e. staff pay less than faculty and administrators). Another benefit was that any children I had could attend the university and receive 3 classes a quarter on a staff scholarship. A full class load is 4 classes! I don't know what the employment opportunities are in the college or university DW is attending now but it wouldn't hurt to look into it. By the way -- I am not at the first university anymore -- I got my free education and took it to another institute.
Julie F.

"Alternative" Student Options

I agree that she shouldn't spend her money on daycare when they are having serious problems buying food. I commend her for wanting a college degree, its the way to go. Before she gives up college all together, perhaps she should contact an advisor at school that deals with "alternative" students. When I was in school, we had many students that decided to return to school past the "normal" age. There are programs and money out there to suit her needs. Also, maybe she could schedule her classes for nights and evenings. Many schools also have telecourses where she would only have to take a test outside her home (when she is available). If there is just nothing she can do, she could wait it out until her children are all in school. Then she can schedule her classes and maybe even work part time on campus. I just DON'T want her to GIVE UP GOING TO COLLEGE. She can be a positive role model for her children!
Leslie in Ann Arbor, MI

Scholarships

There are many scholarships out there for women who wish to go back to school. Go to any search engine and type in "Scholarships" and be prepared to research, research, and do more research! Also, she could sit down with her councelor or any financial adivisor at her place of education and discuss the possibility of grants. I know that some Churches grant scholarships and businesses as well. Don't be afraid to contact specific businesses and ask if there isn't some sort of program that can be beneficial.

Along the same line...She could also go back to work with a Company that provides educational expenses. There are many out there and this could also be another avenue for her to discuss with her family. This route may take more time in gaining the desired degree, however, you could be established within a corporation and be well on your way to obtaining your career goals.

There are other possibilities for her children's educational future. She could speak with an insurance agent. We have set up specific policies for our children, ages 6 and 5, by the time the policy has matured there will be enough money in there for a good chunk of college fees. Pick out several different companies and decide which policies hold the best financial future for her children.

The best thing for this area is to work with the children constantly and make school work enjoyable and fun. Paving the way for future scholarships is another way to invest in your children's future, not to mention building a loving and lasting relationship along the way.

Good luck to her. We are in the same boat and are constantly looking for ways to improve the situation. It's not easy but with some good old fashioned elbow grease and dogged determination you and your family should be able to come up with different alternatives.
Cynthia F

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