BBB💔 - One semester from finishing a civil engineering degree, but I may have a $32k funding gap. What is the least damaging option?
I want to acknowledge upfront that choosing an expensive private university was probably not the best financial decision. My family and I are immigrants, and at the time we were simply grateful and proud that we had made it this far. We did not fully understand how serious the long-term financial consequences could become. That decision has already been made, though, and now I am trying to figure out the most responsible way forward.
I am studying civil engineering and am supposed to graduate this December. I have one semester remaining, along with summer courses I am currently taking.
I recently found out that my parent may no longer be eligible to borrow additional Parent PLUS funds because of new federal borrowing limits.
My current school balance is roughly:
- Summer balance: about $15,000
- Fall balance after estimated aid: about $17,500
- Total current gap: about $32,500
The bigger issue is that we already have approximately:
- $150,731.47 in Parent PLUS loans in my mother’s name
- $22,272.66 in federal student loans in my name
- $173,004.13 in total student-loan debt
I understand that the Parent PLUS loans are legally my mother’s responsibility. However, she borrowed them to help me attend school, and I fully intend to work toward paying them off myself after graduation rather than leaving that burden entirely on her.
I am a hard worker, currently employed and completing an internship. I have also had multiple employers express interest in hiring me after graduation, including my current internship and my other part time employer. These are not formal written offers yet, so I understand they are not guaranteed, but employment will not be an issue in that regard.
The issue is that I was informed about this funding problem very close to the school’s payment deadline, and I am still waiting for a clear explanation of whether I qualify for any exception, additional federal loans, institutional assistance, or another arrangement.
My main concern is whether borrowing another $20,000–$32,000 privately would be that financially reckless given that we already have about $173,000 in student-loan debt.
At the same time, stopping one semester before graduation could delay full-time employment and my ability to begin repaying the debt that already exists.
What would you do in this situation?
Would you borrow privately to finish?
I would especially appreciate advice. Whether you’re a financial-aid professionals, or anyone who has dealt with Parent PLUS limits or a final-semester funding crisis.
I already understand that the original college decision was financially imperfect. I am not looking to be told that private school was expensive. I am trying to figure out the least damaging move from where I am now