@Judi & @thorninmud: Yes, I can appreciate that. I’m sure most folks will help in some way (unlike my folks).
However, as you point out @thorninmud, the FAFSA based system is less than ideal.
Basically, if the student is a dependent child (lives at home, claimed on parents taxes, derives more than 50% of living expenses from parents), then the parents complete a FAFSA.
Here they disclose all their income and assets. As was mentioned above, everything including cars. The feds determine the student’s eligibility for financial aid (grants) based on the parents ability to pay, not what their willing to pay. Next, they tell you what you qualify for in GSLs (guaranteed student loans). While these offer decent interest rates, they are the only debt that is non-dischargeable should you ever file for bankruptcy. You can maintain in-school deferments, and apply for different types of forebearances if you can’t afford the payments after you graduate, but Sallie Mae will get their money one way or another. If you default on a student loan (120 days late), they can attach your check and take it from your salary directly. So basically, you don’t want to get in too deep with GSLs.
Next up are the third party lenders who will offer you high interest student loans to cover what financial aid and GSLs wouldn’t cover. You want to avoid these. They’re sharks.
With 30K to 90K of debt for an undergraduate degree, it can get ugly real fast.
One way you can help your kid is to have him file for emancipation and, legally be on his own. You can’t claim him on your taxes, but he’ll be able to complete the FAFSA on his own and probably qualify for more financial aid that way.
Years ago, I was a collector (dunner) of defaulted student loans and I’ve been teaching college for twelve years (pretty involved in FA as a chair) – and I’ve seen way too many students buried in debt and often unable to complete their degree because of it.
Sorry. Rant over.