How to Actually Pay for College: A Financial Aid and Loan Playbook

Webinar Transcription

2026-8-12-How to Actually Pay for College- A Financial Aid and Loan Playbook

Anna: [00:00:00] Hello, everyone. Welcome. Good evening, or afternoon, or morning! Whatever time it is from wherever in the world you’re joining us, we are so happy you’re here for our webinar with Juno on, “How to Actually Pay for College: A Financial Aid and Loan Playbook.” My name is Anna Vande Velde, and I will be your moderator today.

Anna: I’m a senior advisor with CollegeAdvisor, where for the past almost five years I have worked with students one-on-one in advising sessions and have been a co-captain of our essay review team. To orient everyone with the webinar timing, we’ll start off with a presentation, then answer your questions in a live Q&A.

Anna: On the sidebar, you can download the slides, and you can start submitting questions in the Q&A tab anytime. We’ll get to as many of them as we can at the end. And you might [00:01:00] notice, um, as Eddy goes through the presentation, some of your questions might even be answered, um, that way with his content. Um, speaking of Eddy, we’re really lucky to have him with us tonight.

Anna: He is your presenter from Juno. Eddy, do you mind sharing a bit about your background for folks?

Eddy: Absolutely. Uh, thanks for having me back. Uh, I love, uh, this audience here ’cause, um, families have such good questions. Uh, Anna, Anna and I always end up, uh, trying to get through as many as we can. Uh, so we will do our best as well, uh, tonight.

Eddy: Please don’t be shy. Ask your questions. Uh, we’ve got, uh, some, some materials that we’ll go through, but of course I wanna make it more most relevant for what all of the questions that you have, uh, and what you’re wondering about. Um, I come at this on the Juno team having worked previously in education for the last decade of my, of my career.

Eddy: I was previously, uh, at the admission office at Yale and also Williams College. I was also a [00:02:00] college counselor in a high school at a private boarding school in New England. Uh, so I’ve seen and had many conversations with students, with families as you’re navigating through college. Um, my work at Juno actually came as a result of me needing to take out loans for my own degree.

Eddy: Uh, I’m pursuing an MBA at Kellogg, and so I take classes at night actually while I’m, uh, while I’m on the team. But I heard about Juno because I needed to take out loans for myself, uh, and then I joined the team after the fact. So I practice what I preach, uh, and so I’m happy to share more about that later on.

Eddy: Um, but that’s how I got involved here.

Anna: Awesome. Thanks, Eddy. Before we get into the presentation, um, Eddy and I both thought it’d be helpful to get a sense of who’s in the room, so I’m gonna open this poll. Please let us know which of those categories best describes you. And while we wait for your responses, Eddy, I’m wondering if I could put you on the spot.

Anna: You have worked with families in a lot of different [00:03:00] contexts throughout your careers. Do you have any tips on things you saw families do well that you thought helped lower their stress levels? This is a very stressful process for a lot of families.

Eddy: Yeah, absolutely. So excellent question here, and thanks for giving me the opportunity to, to talk about this.

Eddy: So I’ve, um- I’ve seen a lot of really, really difficult conversations between parents individually, between me and parents, uh, having spoken to them directly, um, and especially with students who are feeling a lot of pressure. Um, and so understandably, students have high standards for themselves, right? And I, I know all the parents and students who are tuning in tonight, um, you have high hopes, you have high standards, right?

Eddy: And that’s a good thing. When it, um, when it gets to the point though [00:04:00] of being a little bit too intense, um, a little too much pressure or a lot too much pressure in some cases, that can have de- detrimental effects, um, on the relationship. So think bigger picture. There’s more to life than just a college decision.

Eddy: And I would s- I would say this as an admissions officer, I would say this to my students when I was working in a high school setting, and I’m sharing this with you all here. I completely understand the, the, uh, drive, the motivation, and the interest in putting your best foot forward, and you absolutely should put your best foot forward.

Eddy: Um, and if it doesn’t work out in the way that you hoped, just know that there are… That is not the end of the road. Um, you know, I used to work, I used to work at, uh, in the admission office at Yale, and so, uh, many, many students, we did not have the opportunity to admit, right? When a school only takes about 4% of their total applicants, um, most students are not [00:05:00] coming.

Eddy: And so one… You know, I actually remember my first year, uh, this, uh, you know, I don’t know if this is of any comfort here, but is… It was at least a comfort for me in having to make those really, really diff- tough decisions, right? And know that this is a human process. Like, admissions officers don’t like saying no to students.

Eddy: Um, we, we wanna admit as many as possible. But, um, one of my colleagues had said, “Look, it, it is understandably hard, right? There’s a human element to this, and it’s not Yale or jail,” which, like, kind of, you know… And I know it’s like a pithy little phrase with rhymes and everything like that, but, um, you know, it’s not just one school.

Eddy: And I understand students have their dream schools. I want you to, to, to target those. I want you to put your best foot forward. But know that the process that you’re going through right now is important in itself, um, and it’s not just the final outcome that matters. It’s what you’ve learned about yourself [00:06:00] all throughout these years of high school and how you’re gonna apply that to your next community, wherever that is.

Eddy: And hopefully, it’s your dream school but, you know, in some cases that might not be the case. Um, but just know all those skills that you gain along the way will benefit a community tremendously wherever you end up

Anna: I love that advice, Eddy. I tell my students all the time, no acceptance or denial letter is gonna make or break you.

Anna: Um, lot, lots of paths to, to a great future. Uh, it looks like we have the results to our poll. We have, uh, 75% are parents of high school students, so thinking ahead. We have about 15% high school seniors, and then the rest are high school juniors. Oh, and, um, we have an educator with us as well. Thank you everyone for filling out the poll.

Anna: I’m gonna close it now and pass the baton to you, Eddy, for your presentation.

Eddy: Thanks so much, Anna. So what I’m gonna share tonight, [00:07:00] um, and we’re gonna cover sort of different elements of the college financing journey. Now, for those, um, I couldn’t quite tell if parents of high school seniors, uh, if you’re just…

Eddy: If your senior just graduated or if they’re a rising senior, so I’m gonna maybe speak a little bit to both. Um, uh, I’m gonna talk about the cost of college first. Um, think about the federal loan process, what that looks like, what the options are, and then the changes that have just been implemented starting this summer to the federal, um, borrowing program.

Eddy: I’m then gonna talk about private loans, um, how those operate, some of the details behind them, and then ultimately share, um, how to find low rates, a little bit about Juno at the end. And then please feel free to post your questions along the way. Uh, we will get to them. Um, we can stop along the way for questions.

Eddy: Uh, we’ll have plenty of time at the end as well So just a quick synop- uh, quick overview, I’ll talk more about Juno [00:08:00] towards the end, but basically what we do is collective bargaining for student loans. Um, I mentioned this, uh, I myself am, am still a Juno member ’cause I’m leveraging Juno, I’m using Juno for my grad school loans.

Eddy: So we bring families together from undergraduate families, uh, graduate students, uh, who need to borrow to help pay for college. Uh, as a collective, we then negotiate with different lenders. So we don’t have a, a vast network of lenders, uh, on Juno’s platform. Um, we are very specific about the ones that we partner with, and those are the ones that have agreed to certain, um, certain, uh, rates and terms essentially, um, as part of that negotiation process.

Eddy: So that’s a little bit about the work that we do. But this is gonna be very relevant for anyone who is about to enter their senior year especially. Um, of course, this information is relevant if you’re younger than that too. Uh, if your students are younger than that, just know that this will be for the future.

Eddy: Uh, if you are already in college or you have a sen- a student who, who just completed senior year, you’ll know this, uh, timeline very, very well. [00:09:00] So the FAFSA opens, uh, on October 1st. The FAFSA is the Free Application for Federal Student Aid, and this is required for, uh, for federal grants and federal loans.

Eddy: Um, so it’s encouraged to complete the FAFSA. Even if you are not sure you’ll qualify for grants, it can still be helpful, and it is important and necessary to still submit the FAFSA for the federal loans as well You’ll get the Student Aid Index, uh, which is a number that helps determine what your financial aid offer will be.

Eddy: Uh, the number itself is not your financial aid award, but it’s an, uh, it’s an index number that will then be used to calculate your overall financial aid offer. Uh, and then from there you’ll apply to college. In some cases that’s gonna be on an earlier timeline, in early decision, early action in November.

Eddy: In most cases, it’s gonna be around January timeframe. Uh, and then you’ll receive a financial aid offer as well from there. Uh, in the regular decision round it’ll be around March. Um, [00:10:00] you can appeal your financial aid offer, so just know that. It’s quite common in the process. Uh, if the, the finances don’t work out or it’s difficult, uh, that is very common to do.

Eddy: Um, students will decide which school they wanna attend, and then over the summertime research, uh, how to pay for it, uh, with any of the gaps before that tuition is due. And this timeline right now is really where we are. Uh, tuition payments are starting to be due around now. Uh, in some cases even on an earlier timeframe.

Eddy: Some have already passed. Uh, and then all the way through usually or early September, depending on the university. Early to mid-September is when, uh, most tuition bills will be finalized and be due. Now, we’ve got a lot of, uh, topics, uh, that we’ve hosted with College Advisor. We’ll continue to host many more in the future.

Eddy: Um, what I’m gonna emphasize today is this end of the summer period where families are figuring out how to finance college, right? Um, [00:11:00] after you’ve gotten scholarships, what then? What can you do? So I’m gonna… we’re gonna look at, um, how to pay for college, understanding the full cost, cost of attendance, what that looks like, what goes into it.

Eddy: Um, then just a brief note on free sources of funding that are available to you. I’m not gonna spend too much time on that because we actually have, um, an- another webinar that we’ll host in the fall that will go in depth on, uh, FAFSA strategies. And then ultimately the goal here is to avoid borrowing at high rates.

Eddy: Um, borrowing is a last resort, and so always maximize the free money first. Uh, outside scholarships, uh, outside grants, money from the university themselves, if you can appeal for more aid, that is the priority. And then if, and only if you need to borrow, then how can you get the best rates possible?

Eddy: Now, I wanna talk about the cost of attendance here. So this might be a term that you’re familiar with. Uh, cost of attendance is a total sticker price of a [00:12:00] university. So that is inc- inclusive of tuition, uh, it’s inclusive of room and board or housing and meals, um, f- any mandatory fees that are charged by the university, uh, health insurance as well.

Eddy: Uh, one note that I’ll say about health insurance is that if you have health insurance already, uh, and it covers the state that your student is going into, going to college in, you can waive this health insurance cost. Um, so you’re already paying for it, so you can waive it. The deadline for the health insurance waiver form is right around now.

Eddy: So if you haven’t yet filled it out, make sure you don’t miss that deadline. And I’m speaking to any, any parents of college students or current college students. Make sure you fill that out. Now, there, those are the billed expenses. Those get charged by the university directly. Um, assuming you live on campus, uh, housing will get charged, uh, directly.

Eddy: There are also unbilled expenses, which include things like personal expenses, books, um, and that is [00:13:00] not directly charged by the university, but they’re important parts of the student’s academic, uh, journey. Uh, and so you have to budget and plan for that. Cost of textbooks, personal expenses can be airfare to campus, um, you know, going out to meals in the, in the local city, uh, with your friends, buying tickets for the local football game.

Eddy: Just kind of e- those everyday expenses as well that, that students will inevitably incur, uh, while they’re in college. So with that, those all get added up into this total cost of about $45,353 at UCLA, and this is for the upcoming academic year. So this is the cost of one year only. Uh, and from there, we can figure out how to reduce this total cost.

Eddy: Uh, the cost of attendance generally does increase by about 3% to 4% every single year. So you can multiply this cost by four, uh, to get a rough estimate. Uh, if you wanna be even more accurate, you can include the, um, like a slight [00:14:00] inflation rate, uh, to tuition as a result of, uh, annual increases. Now, with, uh, sources of funding, there’s oftentimes many different ways from the federal government, from state governments, and the schools themselves where you can access these resources.

Eddy: Um, for the federal government, I mentioned the FAFSA, the Free Application for Federal Student Aid. So you have to apply and submit that in order to qualify for, uh, for funding. Now, not all families will qualify. It does depend on the results of the FAFSA. So you might qualify for a Pell Grant, for example, or an FSEOG grant.

Eddy: It’s an, uh, Federal Supplemental Educational Opportunity Grant. It’s additional sources of funding that is given to universities to be able to allocate those funds appropriately. And then additionally, there are federal work-study jobs that are reserved specifically for students who have the highest need.

Eddy: Um, now, I wanna make one distinction here. [00:15:00] Um, there are– there’s a specific designation of federal work-study jobs that are reserved for students who qualify. Uh, and that’s important because part of that job, that campus job, is subsidized by the federal government, and part of it, the rest of the… the remaining part of it is subsidized by the university.

Eddy: That is different. Federal work-study is different than other campus employment. So even if you don’t qualify for aid, you can still get a campus job, but you cannot get a campus job that’s designated as federal work-study. So there’s many jobs on campus, uh, and so students will work in the libraries, in the cafeterias.

Eddy: They might work in the gym facilities. They might serve as teaching assistants for classes. They might serve as residential advisors in the dorms. Many, many different types of campus employment opportunities, and certainly students can work off-campus as well if you wanna earn extra income. Um, this is not technically free money, but a student does have to exchange their labor for this, uh, for this job, for this money.

Eddy: And so it is an opportunity for a student to, to generate additional, [00:16:00] uh, additional income all the while. These are usually reasonable work expectations. Um, schools are not expecting you to be a full-time student and a full-time employee Um, state governments also have sources of funding. Uh, for those who are younger, uh, in the audience here, or parents of younger students, just know state funding is most prone to running out.

Eddy: Uh, so if you are going into college now, chances are it’s, it’s late into the summer, there’s usually not any, any funding remaining by this point. Um, so always apply early, uh, both for federal aid, but al- especially for state aid. Um, that’s gonna be one of the most important things that you can do.

Eddy: Similarly, for, or, or for, uh, rather for institutions, they may or may not, depending on the university, uh, they may have limited funds available, so the earlier you apply, for example, it could be beneficial. Um, there are schools that might prioritize financial aid for early decision applicants, uh, [00:17:00] or early decision two applicants.

Eddy: Um, now think about there’s… That complicates the overall consideration of where you might choose to apply early. I understand that. Um, but just be mindful about the resources that a school has to allocate. Um, schools unfortunately don’t have unlimited financial aid budgets. Uh, they do the best that they can with the resources available, uh, to allocate, allocate financial aid as equitably as possible to all students.

Eddy: So getting applications in, um, working with the financial office with any questions is always helpful

Eddy: In this example, uh, I’m gonna assume a $5,000 scholarship, uh, from UCLA, and so that’s gonna reduce the cost of attendance to about $40,353. Now, this number is what the total financial need is. Cost of attendance minus grants and scholarships. That’s the total financial need of the family, which is [00:18:00] also the equivalent of the borrowing limit.

Eddy: So with the borrowing limit, uh, this is the maximum amount that a family could borrow. You don’t have to borrow the full amount, but this is what you’re limited to, um, because student loans can only be applied for, uh, education related expenses. So if you get additional scholarships, whether it’s outside scholarships or a late breaking scholarship maybe around now, um, and it applies, that would further reduce, uh…

Eddy: Your scholarships would increase, and that would further reduce your amount left to pay. Uh, that would reduce your total borrowing limit as well. And so instead of maybe a $5,000 scholarship, if a student got a $15,000 scholarship, this would go down. The 45,000 initial cost of attendance would go down to, uh, to $30,350- $353.

Eddy: So it’s meant to accommodate for the certification process, uh, that lenders use, and it’s meant to accommodate for any of these changes [00:19:00] Now, families may also have their own, uh, sources of funds that are available to help pay for college. Whether it’s in a 529 plan, any other personal savings accounts, that is…

Eddy: that can be helpful and in, in some cases necessary to con- help contribute to the cost of college to help reduce the amount that you have to pay. So these are assets that are reported on the FAFSA, and so fa- uh, families are expected to utilize the available assets and income that they have. In this example, I’m gonna assume a $10,000 contribution from a savings account, and then, um, we’ll see how that plays out in, uh, the amount that’s needed to borrow.

Eddy: Two, two quick notes I’ll mention here. Um, if you do have, uh, an amount of… within a savings account that can help minimize the cost of college, you can think about leveraging those funds in really, uh, specific and strategic ways. Now, before the Parent PLUS changes, we, we [00:20:00] generally recommended families utilize any funds they had to delay any borrowing needs.

Eddy: And this is still true, um, but there’s a, there’s a little caveat that I need to mention. So if you can delay your borrowing, then that’s great because you save on three, on four, five, or six months of accumulating interest, right? And so if you don’t have to borrow for the first semester ’cause you can pay for the first, uh, semester, great.

Eddy: Some families have enough saved to pay for the first year of college. And so in that case, you don’t have to borrow and you’re not accumulating interest on 12 months, on a 12-month period. Um, the loans only accumulate interest the moment they’re disbursed, not when you apply for the loan. So, um, it’s only when the loan is disbursed.

Eddy: So if you don’t have to, uh, take out a loan in, for the tuition bill that’s due in September, great. Now, one caveat that I’ll mention here is that families now do have to be more mindful about overall four-year strategic planning on how to pay for college [00:21:00] as a result of the changes to the Parent PLUS program.

Eddy: Um, I’m gonna go more in depth in these, but I’ll highlight it here ’cause it’s relevant. The Parent PLUS program, uh, starting July 1st, so a few months, uh, last month, these changes went w- went into effect where a family could only borrow $20,000 per year per student. Uh, that’s the limit through the Parent PLUS program now.

Eddy: So because of these restrictions that are now in place, if a family does have available savings, you might want to be thoughtful about how you can maximize different sources of funding, different pools of funding, whether it’s through the federal government, whether it’s through private loans, and whether it’s through your own sources of funds.

Eddy: There has to be more of a conversation. It’s a little bit more nuanced in this case. I’d be more than happy to talk to you about that if you need help with that. Um, but there’s no one size fits all, uh, or universal kind of, uh, advice anymore in the way that historically we’ve given, ’cause it is really going to depend on, uh, what is the cost, uh, of [00:22:00] borrowing to the family, uh, and what is gonna make the most sense because of that Now, again, we’re gonna assume a $10,000, uh, contribution from the savings, and that’s gonna reduce our total amount to about $30,000.

Eddy: From here, there are different ways that families can pay for this amount. Um, after your own savings, you might need to borrow, uh, federal loans in the student’s name, federal loans in the parent’s name, or private loans, which are co-signed loans that are the joint responsibility of both the student and the parent.

Eddy: So I’m gonna go into each of those in depth, but just to give you a quick sense here, we always encourage, or in most cases, um, encourage students to utilize the Federal Direct Loan first. This is the loan that the student takes out in their name. Uh, all undergraduate students are eligible for this loan.

Eddy: They have usually low fixed rates given compared to where the market is today, generally low rates. [00:23:00] Um, strong, very strong, uh, repayment benefits, uh, and federal benefits associated with these loans. But the downside is the borrowing limit. It’s, uh, set to $5,500 for a student’s freshman year, which for many families is not enough to help cover the cost of college.

Eddy: On the parent side of the federal loan equation, uh, we have the Parent PLUS programs. Um, it is the same rate for everyone who qualifies, uh, and there’s… But now there’s, uh, restrictions on how much you can borrow, which is $20,000 per year. Another downside is that it has quite a high origination fee, unfortunately.

Eddy: Um, this is not something any… This is not anything we can control. It’s determined by Congress. Uh, the loan has a 4.23% origination fee, which is the cost just to take out the loan in the first place. So that’s the federal side. On the private side, these funds come from different sources. It can be banks, credit unions, other, uh, lenders, uh, that operate in [00:24:00] student lending specifically.

Eddy: Usually, they don’t have or… any origination fees, which is already a, a bonus. But the big downside is that they don’t have the same types of protections, so you have to be mindful of the trade-offs there. Private loans do allow you to borrow up to the cost of attendance minus any grants and scholarships that the student has received.

Eddy: So if you do need the full amount, uh, to help pay for college, that remaining, uh, that remaining difference, um, then you can access all those funds through private loans.

Eddy: Uh, here’s a question that just came in, uh, that I… Well, actually there was another one before I’m noticing now. So based on your experience, is it, isn’t it better to leave the money in a 529 accounts if loan interest is lower than college savings return per year? Absolutely, that can be a strategy that you use.

Eddy: Uh, if your returns are higher than the amount that you can, uh… Then the… If your returns are higher than your borrowing rate, um, then it might actually be more financially [00:25:00] advantageous for you to, um, to borrow. Uh, that’s a conversation I’ve had with many families. Of course, I always direct families to their financial advisor, but that is a, a common, um, that is a common strategy that families are thinking about, and that is a big if, right?

Eddy: Uh, if you qualify for, uh, for really strong rates. I was just talking to a, a dad today actually, um, who for a five-year loan, so it’s quite specific loan terms. A five-year loan paying $25 a month had a 2.44% rate. Uh, and so in that case, anything that low, like it’s just rare. Um, it is possible, but it’s rare. So in that case, that loan, um, he was leaning towards taking it out, and I was encouraging him to pay that as slowly as possible.

Eddy: He just… That’s not a loan that you wanna, uh, prepay, right? You wanna, you wanna maximize that really great rate, uh, and then leverage, uh, deploy your capital elsewhere ’cause you… it’s possible to get better [00:26:00] returns elsewhere than to actually pay off the loan. So again, that’s maybe a more nuanced conversation.

Eddy: If anyone has any questions, again, happy to, to dive deeper into that, but exactly, Guilherme, that’s… You bring up an excellent point. Um, at what income level is it safe to assume that no financial aid will be available except merit-based aid? It’s a great question. So, uh, actually we have a slide. Uh, and Anna, if yous- if you have the presentation from last year on the FAFSA, we actually have a slide on this, um, uh, which I’m happy to, um, to send, uh, uh, to…

Eddy: Excuse me. The, the, uh, Anna also asked the question, um, but I was speaking to, um, uh, to Anna Vandevelde. So, um, maybe we can get your email address, um, Anna Almeida, who asked the question, and I can send you that slide specifically

Eddy: It does. It’s, it’s hard to answer because it’s, it’s [00:27:00] dependent on not just your income, but it’s also dependent on your assets as well

Eddy: Okay, so, um, there are a few important considerations. Before we dive into the specifics of each, uh, there are a few important considerations to think about. Um, with the financial aspects of it, there are, of course, the common, um, common metrics that families are looking for, right? What is the origination fee?

Eddy: How much does it cost just to take out the loan? What is the interest rate? Most common, uh, common question that families are, are asking. Are you taking out a variable rate loan or a fixed rate loan? That’s an important consideration in your, uh, in, in the loans and your decision-making. And are there any restrictions?

Eddy: Are there any borrowing limits in place? But certainly beyond those, there’s other factors to think about. Do you qualify? How do you qualify for a [00:28:00] loan? Uh, whose name is that loan in? And then when do you have to start making payments? And then how, um, how will you manage if there’s any kind of extenuating circumstances, if you face any financial hardships, what protections might be in place for that?

Eddy: So these are big questions and important questions to be thinking about. There’s pros and cons to each of these different types of loans as a result of, uh, how you– what you’re gonna prioritize in this process. So let’s talk about the federal direct loans first. Um, these are the loans that the student can take out in their name.

Eddy: It’s a six point five two percent fixed rate loan for this upcoming academic year and has a one point oh six percent origination fee. Now, this is available to all students as long as they’re enrolled in an undergraduate program at least half-time. And, uh, with that, uh, you have access to these funds, uh, fifty-five hundred dollars.

Eddy: Um, repayment doesn’t begin until six months after graduation, and so you have– you, you don’t have to make payments. You certainly [00:29:00] can make payments along the way, but you don’t have to. Please note that interest still accrues all the while, even if you’re not making payments. So, um, you will be eventually responsible for that interest that accrues.

Eddy: These loans have the best protections, um, for, um, uh, deferment, uh, protections, forbearance protections, and also the opportunity to po- uh, to qualify for public service loan forgiveness. So this is why we recommend starting with federal direct loans first. Uh, it is possible for a student to eventually have their loans forgiven if they work at an eligible employer for, uh, what, what is the total amount of a hundred and twenty months, which is ten years, and you’ve been making, uh, consistent on-time payments.

Eddy: It doesn’t have to be a consecutive period, but just in total. Uh, you have to make a hundred and twenty on, uh, payments and work for an eligible employer. Um, and this is how, uh, the government incentivizes, uh, students to go into public service. So if you need it, [00:30:00] it’s here, it’s available. This is the best place to start.

Eddy: Now, uh, the limit is $5,500 for freshman year, and it goes up to $6,500 for sophomore year and then $7,500 for junior and senior year. So you have a little bit of increased borrowing capacity as a result of this future years. If a student is classified as an independent student though, uh, your borrowing limit goes up.

Eddy: Now, independent students are a specific des- uh, designation and definition as it relates to the FAFSA. It is not related to IRS tax filing status. It’s not related to who’s being claimed on the tax returns or anything like that. Uh, you see the criteria on the right, so either 24 years of age, graduate student, for example.

Eddy: All graduate and professional school students are considered independent ’cause their parental information is not going to be asked for or expected in the application process. Um, or a student might be an emancipated minor, amongst many other reasons, uh, why a student could be [00:31:00] independent. These do require documentation, so as a parent cannot just claim that their student is independent, um, to avoid paying, uh, for their child’s education.

Eddy: If a parent is denied Parent PLUS, and we’ll talk about some of the reasons why in a moment here. If a parent is denied, then the student can also borrow up to the independent student limits because they won’t have the parental support, the parental financial support, uh, in the college process

Eddy: Now, to reiterate, if you don’t need more than $5,500, then the Federal Direct Loan is really the best bet. You can be done. Just take that out. It’s usually in, in almost all cases, it’s the best route to go to just stick with that. The reality is that most families need more than $5,500 to help pay for college, and so that’s where we then get into the next conversation of comparing Parent Plus loans with private loan options and which ones might make more [00:32:00] sense.

Eddy: So for the Parent Plus program, it’s a fixed 9.07% rate, uh, loan, so it’s about two and a… a little over two-and-a-half percentage points higher than the Federal Direct Loan that the student can borrow. And the origination fee is much higher, as we mentioned earlier. It’s 4.23%. So just to… If you take out the maximum, uh, $20,000 that’s allowed, you’re paying about $850 in fees just to the government.

Eddy: And again, we can’t change that. That’s just part of the Parent Plus program. You cannot have an adverse credit event to qualify, um, but as long as you don’t, you’ll qualify. So the… It’s not tech- um, it’s not technically credit-based, uh, so your credit score doesn’t matter as much here. Um, so this is where families m- that may not have the strongest credit, uh, are eligible for this borrowing.

Eddy: One important note here is that the loan is only in the parent’s name, so [00:33:00] the student is not on this at all. There’s nowhere to put the student’s name on a Parent Plus loan. It is the sole responsibility of the parent, uh, and as a result, that may or may not be an attractive option to some families. Um, usually payment will begin 60 days after the loan is disbursed, but know that you can actually select a full deferment option.

Eddy: Just make sure you check that box when you’re filling out the Parent Plus loan. Um, so now there are limited hardship protections with the Parent Plus loan as a result of the changes made on July 1st. But the Parent Plus program is still available, and it can be a really important one to leverage if you need it So again, just to reiterate, the student is not on this at all.

Eddy: Um, you would have to ma– you, you’d wanna make sure that, uh, you are, uh, solely responsible and you’re comfortable with that being the situation here. [00:34:00] You can apply on studentaid.gov, and so if you have the slides, uh, you can click on the hyperlink. It’s the same website that you apply for the FAFSA. And if you are denied the Parent PLUS, uh, it might be for one of the following reasons: where you’ve had a recent bankruptcy, uh, any large debts more than 90 days delinquent, um, or wage garnishments, tax liens, anything like that.

Eddy: So if you are denied the Parent PLUS, the student can borrow under independent student status, uh, so they can borrow more. The other consideration is that a, a parent can actually get an endorser on the Parent PLUS, which is effectively a cosigner for the Parent PLUS Loan. So a parent can still qualify for the Parent PLUS Loan if they have an endorser, and the endorser secures that loan.

Eddy: So if the parent doesn’t pay or make payments, the endorser is then financially responsible, uh, for making those payments Now, I highlighted this change, um, for anyone who is [00:35:00] going into their freshman year of college right now in the fall of twenty twenty-six and all the students younger than them, you are now subject to this annual twenty thousand dollar per year per student cap.

Eddy: There’s also a lifetime limit of sixty-five thousand dollars as well, so… And that’s per student. So structurally, uh, I wanna outline how this is gonna impact families, um, because the borrowing limits are going to be s- um, more severe, uh, and how families navigate that and plan to navigate around that is gonna be really important.

Eddy: If anyone who’s tuning in has– is in college currently or has a child already in college, you can be grandfathered into the old terms of the Parent PLUS Loan, which is up to the cost of attendance minus any grants or scholarships that are received. So the limit, uh, these annual limits will not be in place for you, uh, ’cause those students started college before the law was passed and before it was implemented.

Eddy: Excuse me. Before the law was passed, rather. Uh, it did, it got implemented [00:36:00] this summer on July 1st. But you have the opportunity to qualify for the legacy exception, which means that, uh, those limits do not apply to you. But you had to have borrowed a federal loan in the past, either Parent PLUS loan or a Federal Direct Loan that the student borrowed, and the student cannot transfer universities.

Eddy: Just make sure, uh, that is an important note. If you do transfer universities, you’ll then be subject to the new terms, the new limits of the Parent PLUS program. So let’s, uh, visualize what this is gonna look like. Uh, we’re gonna come back to the example with UCLA. Uh, and remember, we had a five thousand dollars, uh, scholarship, ten thousand dollars in savings, and I’m gonna assume that the student maximizes the Federal Direct Loan Program and the parent maximizes or borrows the full extent of the Parent PLUS program.

Eddy: So in the first three years, we can see that there’s a small amount of unmet need here, where it’s about f- forty-eight hundred dollars, thirty-eight hundred and then twenty-eight hundred dollars. [00:37:00] So it goes down by a thousand dollars each year because the student can borrow more through the Federal Direct Loan Program, the light yellow, uh, bar that you see The big point here is what’s gonna happen senior year.

Eddy: So in senior year, you’ve already borrowed $60,000 through the Parent Plus program, and the lifetime limit is sixty-five, so you’re only eligible for $5,000 left. So this is what I mean when I talk about there’s a structural deficiency in the Parent Plus program that effectively forces parents into the private loan market, right?

Eddy: So if colle- if you n- if you need to borrow beyond this amount, then some families are going to be forced into the private loan market as a result. There’s an additional unmet need of almost, uh, of over $29,000. Uh, and so with that, uh, how are families gonna help meet that gap, right? Normally, it’s gonna be additional loans that they take out.[00:38:00]

Eddy: So this is why it’s so important to know about this process because you may have to face this, uh, private loan… You may have to face the private loan market whether you want to or not. Because the borrowing through the Parent Plus is no longer gonna be sufficient for many families, you can still borrow through the Parent Plus, but you might not be able to pay the full amount, uh, uh, through the Parent Plus program.

Eddy: So knowing your options is critical as you navigate through, and this is why I was mentioning earlier the, um, you know, in terms of the advice of if you have any amount in savings, uh, currently, you can consider utilizing those savings, but you might also need to be mindful about what your borrowing limits are through different loan programs On the private loan side, usually they don’t have origination fees, so that’s always a good sign.

Eddy: Um, but the rates are based on your credit and some families may not qualify as a result. Uh, typically, families need at least a 650 credit score to qualify. Um, but just know the higher your credit score, the better rates [00:39:00] you’re gonna see. So if you just barely qualify with a 650 credit score, you may not see very competitive rates, right?

Eddy: And this is where we have the conversation of going Parent Plus perhaps first for the first amount that you need, and then filling the gap with any private loans. This is a joint responsibility loan, and so, uh, the student and the parent are responsible for it. It’s… You can choose between fixed rate or variable.

Eddy: Most students will– most families will choose a fixed rate loan. It’s just easier to predict, uh, your payments over time. And then you can choose your repayment terms. How long the loan is, you can choose when you be- start repayment. I’m gonna talk about that more so in a moment here. But again, previously, you could borrow up to the cost of attendance, but now it’s just really important to know ’cause you might hit your cap through the Parent Plus program and be forced to explore private loans, um, because you’ve hit that cap.

Eddy: So I shared a, a, a lot here already in terms of when you might wanna consider [00:40:00] private loans. Um, certainly, it’s gonna be after the Federal Direct Loan Program. That’s usually first point of contact if you do need to borrow. But from there, then if you want a co-signed loan with the student on that loan and not just exclusively the parent, that might be another reason to consider I mentioned the repayment timeline as well.

Eddy: So most families will, uh, defer their payments, about at least a third of Juno families, while many more beyond that too, um, will defer their payments, which means you’re not paying anything while the student is in college, plus the grace period, which is usually six months. So for four and a half years, uh, you’re not making any payments on a loan.

Eddy: Now, interest will accrue again, uh, all the while, so just be mindful of that, but you’re not obligated to pay anything. The most popular option is a fixed payment amount, which is usually about $25 a month. The reason this is really popular is because the fixed payment, uh, also qualifies for the auto-pay discount of [00:41:00] 25 basis points or 0.25% that many families, uh, can get, um, if you connect your bank account and enroll in the auto-pay program.

Eddy: It’s feasible, uh, and recommended. Uh, so for most families, if you can do the $25 a month, there’s, there’s no reason not to. Uh, you can get an additional discount on your rate by signing up. So we always encourage it. Uh, it’s a, a really great thing to take advantage of. There are some families that will do interest-only payments, so you’re paying the interest along the way.

Eddy: If you do that, then the amount that you borrowed at the beginning will be the same amount at the end of the loan term. Um, so you’ve been paying the interest all the while. So if you borrowed $20,000 and you’re paying the interest along the way, then your final balance, once you begin repayment, will still be $20,000.

Eddy: Anything less than that, the interest will accrue, and it will get added to the, um, to the overall balance of your loan when repayment begins. And then a very, very small number of, uh, families will choose an immediate repayment, which [00:42:00] is you start paying the loan right away, the full principal and the interest balance.

Eddy: Not common, but there are some circumstances that, uh, that warrant it. If you do choose that option, you will pay the least in interest by far, uh, if you start paying right away ’cause you’re not waiting four and a half years to make payments. So families will borrow one year at a time. Uh, financial aid, uh, cost of a- uh, attendance changes every year, so financial aid adjusts every single year.

Eddy: It’s also meant to accommodate any changes in family circumstances. And so as a result of that, uh, the amount that you have to borrow will change every single year. So you go through this one year at a time in terms of taking out loans. Uh, you can pay them back sooner. So let’s say you chose that $25 a month option.

Eddy: Uh, you can certainly pay more than that. You can overpay, um, but you’re not obligated to. Just make sure you meet the minimum, uh, responsibility of your loan. So in some cases, th- that flexibility of paying nothing is really, really important to families. You’re not obligated to pay [00:43:00] anything. You certainly can, or you can pay maybe just $25 a month.

Eddy: That’s fine. If you– if one month you get a bonus check or you can pay more, by all means, you’re welcome to pay more, uh, but you don’t have to. And then interest accrues when the money is sent to the school. It i- it does not accrue when you apply for the loan. It does not accrue when you’re approved for the loan.

Eddy: It only starts, uh, accruing when the money is sent to the university. So this is why we encourage starting early, because the earlier you start, uh, the, the earlier you can lock in good rates and protect yourself from any fluctuations in rates, uh, in the market over the course of the summer

Eddy: So a few final, um, uh, final m- points I wanted to mention here, uh, and then we’ll definitely get to Q&A. Um, I always encourage families to apply as early as possible. I know we have a lot of families who are, um, f- their students are going into senior year or even younger than that. [00:44:00] June is a w- the ideal timeline that I would recommend, uh, starting early.

Eddy: So if you do apply for a loan early, then you can lock in the rates, uh, that you see at the beginning of the summer. If the rates go up, you’ve locked in that rate for the beginning of the school year. So again, you’re not, you’re not getting charged interest until the, the money gets sent to the university.

Eddy: So you can lock in a rate early, enjoy the rest of your summer knowing that you’re, you’ve got a good rate that you’re happy with. If rates go up, then you’ve made a really great decision ’cause you are, you’ve got, you got rates earlier when they were lower. If rates go down later in the summer, let’s say in July or August, you can reapply for a loan, uh, under the lower rates, cancel your early- your first loan, and then that’s fine.

Eddy: You can always cancel a loan before it’s dispersed to the university, even if you’ve signed it, even if it’s approved, even if it’s certified, you can still cancel the loan before the funds get sent to the university. [00:45:00] So, um, those funds will get, uh, certified by the school, and so just know that that can take a little bit of time.

Eddy: Um, approval is usually quick, one to three days, and in many cases, same-day approval as well. But, uh, I always encourage families to start 30 days before their loan, their tuition bill is due. So if we’re looking at it today, right, most tuition bills are gonna be due within the next 30 days. So, uh, this is a very active time that families are exploring how to pay for college I’ll mention as well the importance of locking in a rate early.

Eddy: Um, if you apply for a loan, uh, you– the value in that is that you have 30 days from that point in time to make a decision. So that loan will expire after 30 days, but up until that point, you can lock in that rate. The rate is good for 30 days, and then you can see and shop around and see what else is in the market for you.

Eddy: If you do any pre-qualified, uh, rate checks, [00:46:00] that is preliminary, and it does not lock in any rates. So you have to submit a full application to lenders in order to lock in that rate. Now, you should shop around. We encourage you to shop around and keep it within a contained timeframe. So as long as you do so within 30 days, uh, multiple inquiries on your report will count as one, as long as you’re shopping around for the same type of loan product.

Eddy: So in this case, it’s a student loan. Um, so, uh, I’ve had this question come up many times of families being apprehensive, uh, and understandably so, ’cause you don’t want your credit to get dinged every time you apply. Uh, makes sense. Just know that for the same type of loan product, uh, you can still shop, shop around, and it’ll count as one.

Eddy: Now, if you decide to also shop around for a car payment, if you need to buy a new car, that’s gonna be a separate, uh, separate inquiry Just a, a few final notes here that I’ll mention about Juno. Um, we have a 1% cashback bonus for all families. Um, so if you do take out a loan through [00:47:00] Juno’s platform, then, uh, we’ll give you a 1% cashback bonus.

Eddy: And again, Juno is not the, the lender. Um, we partner with different lenders ’cause we wanna find the best deals that are out there. So this is our way of saying thank you for using Juno. Uh, we also have actually a 2% cashback bonus for our rate match program, which I’ll talk about in just a moment. So if you find a better rate through another lender, uh, then we will actually match that rate and then give you a 2% cashback bonus.

Eddy: So it’s designed to be the best deal for that families get. Uh, and we can match 11 different national lenders that are out there. So that’s, uh, sort of the value proposition that Juno brings, um, is to basically ensure that families get the best rate, the most competitive rate, um, in, in the market that they qualify for.

Eddy: Um, Juno is totally free to use. Uh, we never ask for, for payment. Uh, it’s totally, uh, there’s no obligation to, to take out a loan through Juno. Um, if you do a rate check through Juno, there’s no hard inquiry on your credit [00:48:00] report. So I always encourage families, especially even in two-parent household, uh, families, for both parents to do a rate check, um, because one parent might actually qualify for a better rate than the other.

Eddy: And understandably, like household income might be the same, but lenders will pay attention to individual income. So one parent might earn more than the other on the income front. Uh, one parent might have a higher credit score than the other, and so they might see better rates. Um, one parent might have higher debt associated with their name, which impacts their debt-to-income ratio.

Eddy: So maybe one parent has, um, more student loan debt than another, right from maybe their own undergraduate career or, or any graduate schools that they attended. Those are all factors that fact, uh, factors that play into the, the rates that you’ll see. So it’s helpful to do a preliminary check, so it doesn’t impact anyone’s credit score to see what, um, which parent, uh, for which parent it might be more advantageous to go through this process with Um, the lenders that we have on our platform have no hidden fees.

Eddy: [00:49:00] Um, you will also, we’ll always guarantee that you have an option to fully defer and not pay while the student is in school. And then also, if you have any, uh, individual questions, uh, we pride ourselves on being available. This is a free service that we offer. Um, many, many will charge to, to go through to help you navigate through this process.

Eddy: Uh, Juno is able to offer it for free. So if you have any questions, feel free to reach out. I’d be more than happy to help you walk through some of the questions that you have on, um, figuring out federal loans, private loans, anything like that. I mentioned the rate, uh, the rate match process here. Um, so let’s just turn our attention now to Q&A

Anna: Thank you, Eddy. It actually looks like you have answered most of the questions already. The question about the, um… You mentioned the FAFSA webinar. I put the link to that webinar in the public chat and sent it to Anna [00:50:00] directly. Thank you. But I’ll work with you offline, Eddy, to find the specific slide, ’cause Anna has to follow up about that, and I just wanna make sure I’m pointing her in the right direction.

Anna: Um, so we’ll get that to you, Anna. But for everyone, um, if you go to College Advisor’s website and click on webinars and filter by financial aid, you’re gonna see a lot of really high-quality webinars from Juno on all sorts of topics. So I highly recommend you go there. Um, we have a question right now from Don.

Anna: If a parent can receive a private loan with far better interest rates than federal loans, is it still advisable to max out the federal loans first?

Eddy: So it depends. Um, the, when, when we talk about federal loans, right? Let me go back to this slide So, uh, it depends on whether you’re talking about Parent PLUS loans or the Federal Direct Loan that the student can take out.

Eddy: Um, [00:51:00] the Federal Direct Loan, it can still be, uh, encouraged or advisable to, um, to take that out for the benefits associated with the, with the loan beyond just the rate. Right. So, um, we… I’ll, I’ll pa- actually pause here along the way. So the rate for a Federal Direct Loan, this is the s- the rate the student can take out, the loan that the student can take out is 6.52%.

Eddy: So yes, there are cases, and that’s why I say in almost every case, we generally recommend this. There are some cases where families might qualify for rates lower than this, and so you’re not obligated to take out the Federal Direct Loan. You don’t have to, but it is available. If your rate is that much better…

Eddy: So I mentioned actually, you know, there are some cases where families are getting, you know, in the two and a half percents or three, even three, three and a half percentage points, which is significantly lower than this rate. Um, if that’s the case, that might be a scenario where you might want to take it out in the private loan [00:52:00] market and not take out the Federal Direct Loan.

Eddy: That’s totally fine. Just know that you would then give up any federal protections associated with this loan, the benefits of it. Um, this loan is in the student’s name as well, rather than in the parent’s name or in the, in the c- or co-signed I should say. Uh, co-signed loans are in both the student and the parent’s name.

Eddy: So on the interest side, from a strict financial perspective, then yes, uh, you might end up… it might actually end up being cheaper depending on the rate that you qualify for, um, to, to take the full amount, to take everything through the private loan market, depending on the rate that you get. Now, if a student is interested in becoming a teacher or a public defender or any kind of public service work, then, and they know that from the beginning, then that is where it might actually be advantageous even at a higher rate.

Eddy: It might be more advantageous to stick with this loan because you can get it, the, the balance of the loan forgiven [00:53:00] after 10 years. Um, so part of it depends on what the student wants to do as well. The reason we usually encourage this as the first point is because many students are not yet entirely clear on what their career pathway will be at this point in time.

Eddy: So the flexibility that the Federal Direct Loan offers, uh, in terms of that forgiveness option, um, plus a pretty decent rate in the market, uh, oftentimes can be worth, um, uh, can be worth it Good question.

Anna: Thanks, Eddy. I’m not seeing other questions right now, but I’m gonna wait at least 30 seconds to see, uh, if, if any come in for Eddy.

Anna: And while we wait, can we go back to that QR code, Eddy? Yes. I also put the link, if for whatever reason the QR code isn’t, doesn’t work for you, if you don’t have a, a device to scan it with, I put the link, um, to Juno’s website in [00:54:00] the chat, so you could click on that as well, um, to, to see if you, what rates you qualify for.

Eddy: Yeah. And again, I would just say there’s no downside to it, uh, in checking preliminarily, even if, if even if you’re not going through this process. I actually was talking to a dad today who, um, is doesn’t need to go through the process now, um, because they actually paid for the first semester already out of pocket.

Eddy: But it’s just a preliminary option to explore what rates are. He can actually still go through the process and lock in a rate now for second semester. That is a common question that we also get. You can go through the process now, uh, even if you’re, if you plan on paying the f- uh, the first semester in full, lock something in now and only have it disbursed second semester.

Eddy: But if you are the parent of a, of a high school junior, for example, of course, rates are gonna change in the future when it comes time for it. But if, uh, I encourage you to do a preliminary rate check now just so that you can educate yourself on [00:55:00] what you’re seeing, how costly it might be. Um, there are significant issues related to access and affordability, um, now with these, uh, federal changes in place.

Eddy: There are no good solutions if a family does not have strong credit and you need to borrow beyond what the federal government will allow you to borrow And so this is the, this is the toughest conversation that I have with parents. If you are seeing– I’m gonna use an example here. If you are seeing thirteen, fourteen percent interest rates on a private loan, but you have no other borrowing options because you can only borrow a certain twenty-thousand dollar limit through the federal government, then there’s no good alternatives, unfortunately.

Eddy: So knowing that now, and this might actually be even more important for, uh, for the younger audiences here. Knowing that now can help you prepare accordingly so that when you are a senior or, or about to graduate, or your child is about to graduate, you can take [00:56:00] steps at this point in time to help rebuild your credit, right?

Eddy: To make sure if you have any, um, high-interest consumer debt. You know, I, I understand it’s easier said than done, but if you have any high-interest consumer debt like credit cards, paying those off, right? Keeping your credit utilization rates low, um, paying your credit cards every month, right? There’s like these little tips and tricks that you can do to slowly build up your credit so that you can put yourself in the best position to qual– first of all, to qualify for good rates, right?

Eddy: But then hopefully to see, um, to, to make it as cheap as possible for your family to have to borrow. The better your rates, uh, excuse me, the better your credit score, the better rates you’re gonna see. And that can potentially have, uh, I, I don’t mean to like use hyperbolized language, but it is true that it can potentially save you thousands if not tens of, uh, quite literally tens of thousands of dollars in interest charges over [00:57:00] the span of a ten-year loan, for example.

Eddy: Um, I was talking to a dad, um, who was, uh, he used Juno’s platform. We have a lender specific to the state that he’s working with. Other lenders were offering him fourteen percent rates on a twenty-six thousand dollar loan, and he was able to get a rate in five– uh, that was five and a half percentage points.

Eddy: So that difference, and this is not an exaggeration ’cause I made sure to commit this to memory. I was stunned. The difference in total interest, this was on a twenty-six thousand dollar loan, um, interest, I believe it was a ten-year loan. Uh, ten, yeah, it was a ten-year loan. Total interest expense is still kinda high, right?

Eddy: It was about twenty-five thousand dollars, so th-that is there. Uh, that’s the cost of borrowing. Interest expense at a fourteen percent rate over ten years was a hundred and twenty-five thousand dollars It’s, it’s egregious. And so I, I, I’m not saying [00:58:00] that to like scare anyone here, but this is, this is, this is how, how serious the subject is, where the interest…

Eddy: Not just the loan, right? The loan itself was $26,000, but you have to then pay f- uh, basically five times more, uh, pay that five times over, uh, in the total cost of the loan, uh, t- and that’s just for one year of college, right? So this is way, way more important than ever before to make sure that families are in the best position to thrive, to make sure that you have a, a strong grasp of what is going to be expected of you, what the final costs of college are gonna be, and then anything that you can do on your part to put yourself in that best position to succeed is gonna be of critical importance.

Eddy: So sorry, that was a little bit intense, but um, I’m just like thinking back to the memories of the conversation I had with that dad when I saw he was sharing his screen with me and I saw the interest of [00:59:00] $125,000. It was just obscene, right? And I don’t want any families to be in that position, ’cause that is just…

Eddy: That is what makes college unaffordable, right? And it… I, and I cannot in good conscience, like again, I used to work in admissions, I used to work as a college counselor, if that’s the case, I would not even recommend that family go to college or find an alternative. Um, maybe it’s community college, uh, for two years first.

Eddy: This is what we talk about when we talk about the significant implications of how this is gonna impact students’ college going rates, um, and whether or not college is actually affordable.

Anna: Yeah. And if I could just add on to that quickly, Eddy, from the college advising side of things, I have students all the time say they just don’t know what their family’s financial situation is when it comes to funding their education, and I understand it’s a difficult conversation, it can be an awkward conversation to have with your students.

Anna: And [01:00:00] my students who know, okay, this is about what we’ll have to take out in loans, this is what we can afford, they are much better able to make a very strategic college list, um, because that, I think the financial piece should inform what schools are on your list because we can look at which schools are gonna consider your finances with admissions and which ones aren’t, and which ones have more merit scholarships, and there’s a whole bunch of reasons that knowing the financial side of things earlier, so like Eddy said, if you’re the parent of a junior scanning it now just to get a sense, um, will really help your student in, in the long run.

Anna: So I just wanted to plus one that. And while you were sharing that really, um, illustrative example about interest rates, Eddy, which blows my mind, um, we had another question come in which is, is a HELOC better than a private loan?

Eddy: Um, good question here. It depends. Um, families can do a home equity line of credit [01:01:00] if you wish.

Eddy: Um, it is a way that you can– that some families will choose to pay for college. Uh, just be mindful of the risks associated with the HELOC loans. Obviously, you’re putting up your home as collateral. Uh, there is inherent risk associated with that. Um, uh, so if you’re… Yeah, there are families who do it. I’ve spoken with families who choose to do it.

Eddy: Uh, and that if that works for you, that works for you. Just know that, um, it is, it is possible to do it. You, you would then be responsible for, um, for submitting the payments. Um, a function of the, uh, of the student loan is that the lender will work with the school, so you may have to make the payments directly to the school.

Eddy: Um, just be mindful of any timelines there, so you’re not missing any, uh, payment deadlines. Uh, and just be mindful of the repayment terms as well. ‘Cause typically, um, student loans are unique in the feature that allow a deferred payment option, uh, compared to other types of borrowing, which usually require immediate [01:02:00] repayment.

Eddy: So if you’re in that case, uh, or if you’re gonna be in that situation, then make sure you’re at least comparing at least the most similar types of loans where you might do, um, a five-year or a ten-year immediate repayment loan and see what the rate is there. Um, don’t compare like a full defer– fully deferred student loan to a HELOC loan, ’cause those are gonna be ver-very different

Anna: Helpful.

Anna: Thank you, Eddy. I haven’t seen any more questions come in. Um, but you all know how to find Juno. You have the link to their website. Um, they can be reached… They really are… They really wanna help. Um, they’re… I, I’ve seen it. We’ve done a lot of webinars together at this point, and they care so deeply. Um, so I hope that you do scan that QR code, see if it’s an option that might work well for you and your families.

Anna: And that’s, that’s all I have for tonight. Eddy, any, any last [01:03:00] remarks from you?

Eddy: Just, uh, appreciate what you shared there at the end. Um, families, uh, who think about the process from both the admissions and the financial aid side, uh, are best situated to navigate through this, uh, in a way that is both healthy and responsible.

Eddy: Um, the last thing, and again, I speak from personal experience, uh, having worked directly with families myself, the worst case scenario that I’ve… cases, uh, that I’ve se- that I’ve seen and had to experience with students and families was when students were super excited about getting into their dream school, and then families not being able to pay for it.

Eddy: So like you, it is important and critical. I, I know families typically tend to ha- handle these convers- or parents tend to handle these conversations on finances, but having those conversations early on, uh, as Anna was mentioning, as it informs building your college list, is going to be critical. [01:04:00] My favorite conversation this year was with a student.

Eddy: Actually, the… I was surprised the parent was even there. The student had a checklist of questions that he, he took the responsibility for it, and he spoke with his dad. His dad, um, couldn’t make the call, or, or the student was well prepared enough. It was exceptional. He asked all the questions that, uh, that every parent I’ve, I’ve gotten would ask.

Eddy: He had his list of questions. He knew and was actively thinking about the cost of college. And so again, we wanna make sure that students can get into their dream universities, right? But, you know, if you’re working with Anna or anyone else, like you- you’re gonna want to consider how your college list is going to be informed by any potential, um, financing challenges, right?

Eddy: Because then you might wanna put m- even more schools that offer merit scholarships and not any schools that don’t. Um, if you know you need funding, uh, there are schools that don’t offer… that only provide need-based financial aid, [01:05:00] and if you don’t qualify for need-based financial aid, then you got… then you’re gonna have to pay the full cost of attendance.

Eddy: So there’s many, many different options. Uh, as long as you’re just honest and upfront with your college counselor at the beginning, that’s gonna be the best case scenario so that they can help you, uh, to be in a position to thrive academically and financially. So, um, don’t be shy in approaching those conversations.

Eddy: As Anna was saying, I know it can be hard or difficult or awkward to do so, but at the end of the day, it’s gonna put the best- the family in the best position overall to succeed to go through this process. Bring the student on board, right? Students are very mature in this process. Uh, and so if you come from, come at it from a place of genuine honesty and, and commitment to doing what you can to make it work, then students, you know, from the parent side, students will tend to respond well to that.

Eddy: Um, and then, you know, uh, we, we can have a productive conversation from there.

Anna: [01:06:00] Absolutely. Uh, thank you so much, Eddy. Uh, we love our partnership with Juno. We are so happy you were here tonight. Everyone, this webinar was recorded. It will be emailed to you all. It’ll also be available on our website, uh, within a day or so, so you can look back at all of this information.

Anna: Thank you everyone for coming out. We really appreciate it, and best of luck to you and your families, uh, and all the students applying to college. Take good care.

Eddy: Thank you everyone. Bye.