Anyone familiar with Universal Tech Institute? Financial Aid issues

[happily single]

My son has his heart set on attending Universal Tech Institute/Mooresville in the fall. He has already been accepted. We are from New England. But they are really pulling my strings with financial aid.

In early March he and I drove to their PA campus for an Open House and for him to participate in a scholarship contest which was a written test. We were told the "results" would be in by early May. He has been trying to get information, and is being told their don't have any information yet on whether he received a scholarship.

I find it highly suspect that we have not finalized anything with the financial aid office and they won't tell him if he has gotten the scholarship. They aren't stating how many scholarships are available, the amount of the scholarship or any other details.

Our next appointment is in early June with financial aid. I requested a 2nd appointment because at the first appointment they told me that based on the FSFSA application due to my income he did not qualify for the Pell Grant and our ONLY option was for me to take out a Parent Plus Loan. IF I was denied then he would qualify to apply for a loan, with a co-signer. I met with my local Student Loan Authority and found that he does in fact qualify for some Pell Grant money.

I'm just wondering if this school is known for its non-transparent financial aid dealings? And more importantly, when offering a scholarship, shouldn't they be required to provide the details?

 

[BelleOftheBall16]

Pell grant eligibility is based on your EFC from his FAFSA. With that info you can look up what if any Pell grant he qualifies for. It might also state it on his SAR, I can’t remember of the top of my head if it does or not.

 

[happily single]

Pell grant eligibility is based on your EFC from his FAFSA. With that info you can look up what if any Pell grant he qualifies for. It might also state it on his SAR, I can’t remember of the top of my head if it does or not.

Thanks. The Student Loan Authority in my State gave me a print out showing that he does qualify for a small Pell Grant.

 

[BelleOftheBall16]

Thanks. The Student Loan Authority in my State gave me a print out showing that he does qualify for a small Pell Grant.

Part of the discrepancy may come from the fact that they recently raised the efc eligibility amount for Pell grants. So if he filed his FAFSA before April they had to go back and recalculate eligibility. It was 6206 and this year it was raised to 6656. So anyone in that range was newly eligible for Pell grants. His new financial offer should now include his Pell grant.

 

[leebee]

If he qualifies for Pell, surely he should qualify for subsidized student loans through the government. There was no way DD was close to qualifying for Pell but she qualified for federal loans each year. There is no way I'd be taking out Parent Plus loans before investigating the federal loan situation. Their refusal to talk about financial aid and insisting you apply for a PP raises some red flags for me (I work in higher ed so have a little experience here). Knowing that UTI is a for-profit institute also is concerning. Have you done an extensive internet search to see if this is actually a good way for your son to spend his (your) money. The reviews I've read are... concerning at best.
https://www.reviewopedia.com/universal-technical-institute-reviews

 

[princesscinderella]

I agree with @leebee make sure this school is the best option for what he wants to study. The for profit schools do not usually have reciprocity where if he wanted to go to a different college all of his credits would not transfer and be useless as they won’t accept them because it’s not an accredited institution. My sister went to Art Institute before it went out of business by us and while she works in the field she studied there a masters or any other higher degree would have been out of reach as other universities would not give her credit for her bachelor’s there. If it’s a trade he’s going into that’s a different story.

 

[leebee]

I agree with @leebee make sure this school is the best option for what he wants to study. The for profit schools do not usually have reciprocity where if he wanted to go to a different college all of his credits would not transfer and be useless as they won’t accept them because it’s not an accredited institution. My sister went to Art Institute before it went out of business by us and while she works in the field she studied there a masters or any other higher degree would have been out of reach as other universities would not give her credit for her bachelor’s there. If it’s a trade he’s going into that’s a different story.

I agree that trades are a different story, but you still want to get your money's worth out of the education/training. OP shouldn't have to go directly to borrowing in her own name, getting Parent Plus loans, etc. All of DD's undergrad loans were subsidized federal loans through the federal government loan programs, and as I said, she didn't qualify for a Pell grant at all (and we were making about $70K a year, combined, during her undergrad years, so it's not like we were making the big bucks or anything).This was awarded via the Financial Aid process/office, she didn't have to apply for these separately. If these loans don't provide enough financial assistance, then OP might need to investigate other loan options, but to be told that she automatically has to apply for a PP loan is concerning.

 

[NotUrsula]

OP, I'm with LeeBee; absolutely do NOT take out Plus loans to finance enrollment at a for-profit college. (For that matter, I recommend not taking out Plus loans for any school; there are no loans for retirement.)

Whatever it is that your son wants to study, it's almost a sure bet that there is a non-profit institution that also offers that program. It will probably cost a lot less and he'll probably be eligible for more student aid as well. Go to your public library and ask for help finding college research resources; they will be happy to help him research alternatives.

 

[cvjw]

Are there not state technical schools where you live? We have them here and they are super affordable - $100 per credit hour per semester. If you lived at home, you could have a part time job to pay for them - no loans needed.

I have no idea what he wants to study, but make sure he will make enough in salary when he graduates to pay the loans back PLUS have enough to live on. So many kids don’t think that thru and are then stuck with high student loans.

 

[trip]

Think seriously about attending this for-profit school. My dd worked for one (that was forced to close) for about 2 weeks. She couldn't believe how all they did was push parent plus loans. She couldn't handle trying to talk these young kids and parents into doing that with no guarantee of employment. This one may be different but try to look into another school. Our area community college has some wonderful certificate program along with a gateway to our state universities. Maybe your area has something similar. Does his high school have a career or guidance councilor that can help with the search?

 

[FlightlessDuck]

I would avoid for-profit private tech schools if at all possible.

 

[barkley]

depending on the technical area a young person is interested in going in to there are a wealth of employers these days who will hire and pay for a student's education. one of our young friends was all set to embark on a costly technical education at the local university when a recent grad from the same program shared that she didn't learn until AFTER she was hired by a local large employer that she could have been hired into a program upon high school graduation that would have provided the identical education (at the identical university) all on the employer's dime as well as provide her with on the job related paid employment during her school breaks-all with the agreement to work for the employer for a very reasonable post completion period of time (and those employees were paid the identical starting wage she had been hired in at but by virtue of having been employees for several years had great seniority/better leave accruals).

it's worth it to explore.

 

[happily single]

Thank you everyone. It’s hard to tell but most of my question related was to the scholarship. I’m even more Leary of this school based on what everyone has said regarding the Parent loans. I appreciate LeeBee’s link to the reviews. None seem that recent and a few are just funny.

My son wants to work for NASCAR and his school is the only one that has a NASCAR program. He is graduating from the local high school vocationAl school. His instructors work(ed) at our local post grad vocational school (NE Tech) and have drilled into the kids how they learn exactly the same as NE Tech. They do recommend Universal Tech however.

 

[greeneyedchick]

I would be wary of any school that wants you to take out loans before even presenting you with your scholarship information. My kid just went through the process and the schools' offer letters listed the scholarship amount, loan amount, pell grants, and outstanding costs. I wouldn't take out loans until you have a scholarship offer in writing. As others have said, I would steer clear of a for-profit "institute" if possible.

Have you contacted NASCAR to see how they feel about the program? If you go to the job listings on the NASCAR website, the qualifications state "
EDUCATION and/or EXPERIENCE: High school diploma or general education degree (GED); two to four years related experience and/or training; or equivalent combination of education and experience." It doesn't sound like they necessarily require that program. You may want to reach out to NASCAR and ask about internship opportunities which may provide a better way of getting in the door. I don't want to put a damper on your child's dreams, but I have heard horror stories about for-profit tech schools and I would hate for your son to lose time and money for something that may not lead him to his dream job.

 

[VandVsmama]

Universal Tech Institute is a for-profit company. Not a non-profit. For-profit colleges tend to always end up with problems. Just look at University of Phoenix.

The nonsense from their financial aid department is not a good sign. I would run away as fast as you can from that company and look for other options.

 

[NotUrsula]

Ah, I see; the school has purchased an exclusive NASCAR endorsement (though the only campus listed as actually having the NASCAR certification seems to be the one in Moresville, SC.)

It stinks for your kid, who has been indoctrinated, but I wouldn't touch this with a 10-foot pole, and here is why: Nowhere on that school's website is the actual tuition stated; trying to find out only takes you to a need calculator. To me, that is a red flag that they may be quoting different tuitions to different students in order to maximize profit. The College Board shows the undergraduate list tuition price as being unknown, which also isn't good.

For the heck of it, I did a little digging for you. (I'm a librarian, I do this for a living). Other than this somewhat greedy-looking for-profit school that has bought itself a NASCAR label, the top 2 schools in the US that offer High Performance Automotive technology programs are private non-profits: the University of Northwestern Ohio, and Ranken Tech in St. Louis, which happens to be a school I'm very familiar with. I can't answer for UNOH, but I can address Ranken. It's an excellent trade school, a private non-profit institution that has a phenomenally high placement rate for graduates, but it's not cheap ($15K/yr), and the cost has driven down the completion rate; an awful lot of people manage to pay for only the first year and drop out when they cannot muster the cash for the second. I've been working with Ranken graduates for over 20 years now; they turn out very skilled people, but the program cost is pretty high. Also, these two programs teach high-performance automotive engine technology, but are not necessarily aimed specifically at motorsports careers.

So, let me mention a well-rated very affordable motorsports-centric program that I did find: Lanier Technical College, located just outside Atlanta. It's a public school, part of the Technical College System of Georgia. For out-of-state students, the tuition cost is $200/credit hour, and it can be reduced to half that if the student establishes Georgia residency by working full-time in Georgia for a year before enrolling there as a student. They have 2 program levels, the first a certificate of only 10 hours (1 semester), or an Associate's level program at 54 hours (2 years). They apparently also arrange internships at tracks in the Atlanta Metro area, of which there are several. This is the link to the program: https://www.laniertech.edu/programs...-technologies/motorsports-vehicle-technology/

In addition, I found similar 2-year or less public-school motorsports programs at Forsyth Technical College in Charlotte, NC, Greenville Technical College in Greenville, SC, Chattanooga State Community College in Tennessee, and Patrick & Henry Community College in Martinsville, VA (which bills itself as "The Racing College of Virginia" and costs $330 per credit hour: http://www.racingcollege.com/solutions/ NOTE that is *not* the same institution as "Patrick Henry College", which is a Christian liberal arts college also in VA.) All of these would probably be worth your while to investigate. Associates degree programs always do qualify for Pell Grants if the student is eligible.

One warning I'd like to give you regarding for-profit colleges; they work with bank partners to issue loans, and they often have a nasty habit of calling loans once a student leaves. Frequently the fine print only gives students 6 months to repay tuition after graduating or dropping out, and if you can't manage that, well, coincidentally they are happy to refinance the debt for a longer term at a higher rate. One ugly tactic that they sometimes use that you have to be really careful of: getting pressured to take out a private loan before looking at your actual FAFSA aid reports. A few for-profit schools have been caught pulling the bait and switch of convincing students to take out tuition loans when they tell the student that they won't qualify for a Pell, when it turns out that the student DID qualify for a Pell, which the loan paperwork signed over to the school in the fine print. Sometimes the Pell is greater than the amount of the loan, but the terms are written so that the loan is defined as a bridge before the Pell comes in, allowing the school to keep the Pell money AND collect the loan payments as well.

 

[mjkacmom]

If he qualifies for Pell, surely he should qualify for subsidized student loans through the government. There was no way DD was close to qualifying for Pell but she qualified for federal loans each year. There is no way I'd be taking out Parent Plus loans before investigating the federal loan situation. Their refusal to talk about financial aid and insisting you apply for a PP raises some red flags for me (I work in higher ed so have a little experience here). Knowing that UTI is a for-profit institute also is concerning. Have you done an extensive internet search to see if this is actually a good way for your son to spend his (your) money. The reviews I've read are... concerning at best.
https://www.reviewopedia.com/universal-technical-institute-reviews

Every student is eligible for the $27,000 in federal loans, fafsa needs to be filled out to determine if they are subsidized or unsubsidized. After that the options are parent plus loans in a parent’s name, or private loans in the student’s name with a parent co-signer. Parent plus tends to have a higher interest rate.