PLUS loans and FAFSA question

[Camping Griswalds]

Kind of odd question...but do I have to wait to see what my son's college offers before we apply for a PLUS loan? I am worried about being approved!

I just re-did our FAFSA because we got our taxes done. Before we had "estimated" what it would be, as it encourages you to do. Ironically it looks like my son will get offered less now. Once we did our real numbers, and added in our refund from last year, it no longer said that he would get a Pell Grant. Sad Its only about 4,000 more than our estimate, but obviously that put us in a different bracket of some kind??

Its hard because our son wants to go to a state school, and they needed more verification documents. The private schools just went off of the FAFSA information. I'm hoping the state school will be able to offer him something. it is a sad fact that private colleges can be cheaper than public!

 

[Darcy03231]

Kind of odd question...but do I have to wait to see what my son's college offers before we apply for a PLUS loan? I am worried about being approved!

I just re-did our FAFSA because we got our taxes done. Before we had "estimated" what it would be, as it encourages you to do. Ironically it looks like my son will get offered less now. Once we did our real numbers, and added in our refund from last year, it no longer said that he would get a Pell Grant. Sad Its only about 4,000 more than our estimate, but obviously that put us in a different bracket of some kind??

Its hard because our son wants to go to a state school, and they needed more verification documents. The private schools just went off of the FAFSA information. I'm hoping the state school will be able to offer him something. it is a sad fact that private colleges can be cheaper than public!

I have three kids in college and we found the private colleges have more money to give away, so even though they have higher tuition, the end result (at least for us) was that private college ended up being less expensive than the state schools.

Once he gets his financial aid package you'll know if you need a PLUS loan or not. If you're denied the PLUS loan that frees up some other unsubsidized loans for your son.

 

[Camping Griswalds]

So far we have found that the private seem to have more money to give, and less paperwork requirements as well. Right now, my son's number one choice is out of state public. We have not had an offer of financial aid from them yet. However even if we get nothing, its still only about $4,000 more than the best private offer at this point. If it can come down any, he and we, will be thrilled!

 

[FINFAN]

to answer your question, no you do not have to wait. A Plus loan is a private loan...you can choose any amount you wish. Obviously, you want enough to cover the shortage so having info from the school ahead does help, and no one wants to borrow more than they need. Obtaining a loan is quick, usually approved in under 48 hours, so you can wait a bit. Most schools will have received notice of the loan coming so even if it is June/July...you should be ok...but call each school you are interested in to verify. Our DD goes to private out of state... this year she had to take out a loan. We applied in Juuly. Her school knew her loan was approved but told us they are flexible until September on dispersment. The dispersment was already there in August, but at least we knew the school was not going to kick her out if it wasn't there day 1.
You will want to contact the school anyway to notify them if you wish to defer on payment of the loan until 6 months after your kid graduates. There is a form that you and your student have to sign, and the FA office also signs that goes to the Dept of Ed...usually in January verifying that you can defer. Otherwise, payments usually begin 4-6 months from dispersment. You can start paying back right away, and that will help keep interest levels down, but most hope to have their kids paying it back after graduation, when they are working. We even have a contract with our DD..honestly...that the loan is her responsibility.
HTH, and call the FA office of the schools...they should be willing to help walk you thru it, it sounds far more complicated than it really is.

 

[vcasey]

Anyone know if a non-custodial parent can apply for the plus loan? My ex-hubby is supposed to be paying for my dd's college per our divorce decree and he grossly under estimated what college costs (I have no idea why he never bothered to check since she told him what schools she was most likely applying to early in her Jr year)

Anyway just curious and praying I don't get burned as the custodial parent.