Do you have to do FAFSA to get loans?

[leahjade]

We were just going to get private loans for my child's college education not the Stafford? Do we still need to do a FAFSA?

 

[Sadie22]

It is to your advantage to avail yourself of every opportunity to receive financial aid for your children to attend college. Some institutions require the FAFSA for a student to be eligible for any type of aid, including merit-based aid. When my children were seeking college funding, our state senators and delegates had some say in allocating some funds and the FAFSA was required to be eligible for that. I would say you should plan on completing the FAFSA for each student in your family early each calendar year. As you probably know, you can put estimated income tax information and then go back and make any necessary corrections after your tax returns are filed.

 

[prncess674]

Why would you not do any Stafford loans? Even if your child doesn't qualify for Stafford subsidized, the unsub loans are still better rates than most private student loans. I would think that most private loans would require that you have exhausted all stafford and PLUS loan options before giving you another loan.

 

[cats mom]

I think that depends on the type of loan you're looking at and who you're getting it through. If you're doing anything through the college/university, chances are you'll need to have the FAFSA form on file.

We knew DD wouldn't qualify for need based aid, but her university also requires FAFSA forms be on file to apply for merit based scholarships. It's not a one time thing either. DD's scholarship is renewable, but she has to submit paperwork with grade verification every semester, so we have to submit new FAFSA forms every year.

 

[ilovemk76]

What does one do if the parents are refusing to fill out the FAFSA?

 

[juliebean]

Why would you not do any Stafford loans? Even if your child doesn't qualify for Stafford subsidized, the unsub loans are still better rates than most private student loans. I would think that most private loans would require that you have exhausted all stafford and PLUS loan options before giving you another loan.

Did you used to work in financial aid? lol This is great advice!

OP - I cannot tell you how many people would take out private loans, and then call our office crying once they realized how high the fees or interest are on them. If you have any option for a second mortgage or other resource I'd look at that after any stafford or plus loans. Protect yourself!

 

[juliebean]

What does one do if the parents are refusing to fill out the FAFSA?

Unfortunately, short of proving abuse or abandonment (ie foster care) parents are not allowed to opt out of the obligation to provide FAFSA info. Does that mean they do? No - but that's the feds stance on it and every year I'd have several students who couldn't get their parents to fill it out and short of the abuse, etc clause - students have no recourse.

Once they are married, have a child of their own, have been in the military, or are over 25 - then they no longer need their parents info for the FAFSA.

I do hope you are not in this situation. If you are, call your school's financial aid office and set up an appointment with a counselor to see if they can help. My parents had a huge tax mess and even though my family totally qualified for it, I couldn't get aid until I got married, so I feel for you if you are stuck with parent's who can't or won't fill it out.

 

[prncess674]

Did you used to work in financial aid? lol This is great advice!

OP - I cannot tell you how many people would take out private loans, and then call our office crying once they realized how high the fees or interest are on them. If you have any option for a second mortgage or other resource I'd look at that after any stafford or plus loans. Protect yourself!

No I was just a college student who had to learn the ropes. I qualified for very little in sub loans and up to the max in unsub loans. Thankfully my parents were willing to take out PLUS loans to cover the rest. I think kids should have some skin in the game. Each semester we had a family kitchen table meeting where we would review all the loan documents. They made it very clear that the Stafford loans were in my name and if I decided to screw around or drop/fail classes that it would be MY debt, but if I did well in school and did well in my classes that they would help me pay them off. I am sure if I didn't have a financial interest in the loans I may not have studied as hard.

 

[magicmommy]

We did not fill out FAFSA forms for either of our sons. We were fortunate enough to have the full tuiton in a 529 so we did not bother.

 

[prncess674]

We did not fill out FAFSA forms for either of our sons. We were fortunate enough to have the full tuiton in a 529 so we did not bother.

Was there any reason to post this other than to brag about yourself? Seriously, this post was unhelpful and completely unneeded. Would you like a cookie or was your own bragging enough reward?

 

[maggiew]

I didn't take the previous poster's comments as bragging. I took it as an example for the OP that it is possible.

Personally I think you should fill out the FAFSA (if possible, but I understand the situations as mentioned above when one parent might refuse). However, many schools give out some sort of scholarships or grants that you may be missing out on without the FAFSA. My daughter received "Dean's scholarships" or "Presidential scholarships" at both schools that she applied to.

Maggie

 

[prncess674]

I didn't take the previous poster's comments as bragging. I took it as an example for the OP that it is possible.

Personally I think you should fill out the FAFSA (if possible, but I understand the situations as mentioned above when one parent might refuse). However, many schools give out some sort of scholarships or grants that you may be missing out on without the FAFSA. My daughter received "Dean's scholarships" or "Presidential scholarships" at both schools that she applied to.

Maggie

Of course the PP didn't fill out the FAFSA, she wasn't seeking any financial aid. The OP was looking for advice regarding loans (i.e., financial aid) and hence wants to know about situations when about situations similar, not stories of people bragging that they didn't need any financial aid. Not all parents have the ability to fully fund a college education.

 

[scrapquitler]

If a parent is not intending to pay for the student's college education, why is he required to fill out the FAFSA? There is no OBLIGATION for a parent to contribute anything financial to his child's tuition bill (unless there is some child support agreement that states otherwise).

SO theoretically:
Say that DH and I decide that we are not going to pay for DDs college tuition for whatever reason (we don't agree that she is mature enough to have it be worthwhile, we have other things we want to spend our money on, we don't like her major/college choice, whatever one of the million valid reasons we might have). Why are we required to fill out the FAFSA which will tell us what our 'parent contribution' is going to be? Obviously, FAFSA might determine that we 'should' pay $10K, but if we don't, then they (the college, and or DD) has to figure out another way for the bills to be paid. So why tell us how much we should pay?

I've got no stake in this, it's just theoretical, but I'm curious....

 

[Debbie Jean]

Of course the PP didn't fill out the FAFSA, she wasn't seeking any financial aid. The OP was looking for advice regarding loans (i.e., financial aid) and hence wants to know about situations when about situations similar, not stories of people bragging that they didn't need any financial aid. Not all parents have the ability to fully fund a college education.

Have to say, I agree with you

I never found filling out a FAFSA all that difficult... it's fairly straightforward once you've done your taxes... and being able to do everything online makes it that much easier.

OP, I don't know where you live, but you might want to check and see if there are any special loan programs in your state... New Jersey has NJCLASS loans that have a lower interest rate and longer repayment than Plus loans, for example.

 

[juliebean]

Whether it seems right or not - the government's financial aid program is based on the FAFSA and a EFC - expected family contribution. It doesn't mean that a family will, but it's the government's determination of means.

It's not perfect, I certainly got caught in the requirement to have parental info - but think what would happen if there was no FAFSA requirement for parental info? Most families would say they are not contributing...and then there would be less funds for students who truly have no resources.

I could go on and on about the places where the formula isn't fair - high cost states vs. lost cost, divorce, why they in some ways reward early marriage or childbearing - but it is a fairly simple and straightforward evaluation - no one wants it to become as complicated as taxes. It's really not a big deal to fill it out, some tax programs now do it as a freebie. Hope that helps explain the logic behind the FAFSA.


Princess - Kudos to you for being so well educated about the money you are borrowing. I think I took it more seriously because I had to repay too. But you are the exception!

 

[Debbie Jean]

If a parent is not intending to pay for the student's college education, why is he required to fill out the FAFSA? There is no OBLIGATION for a parent to contribute anything financial to his child's tuition bill (unless there is some child support agreement that states otherwise).

SO theoretically:
Say that DH and I decide that we are not going to pay for DDs college tuition for whatever reason (we don't agree that she is mature enough to have it be worthwhile, we have other things we want to spend our money on, we don't like her major/college choice, whatever one of the million valid reasons we might have). Why are we required to fill out the FAFSA which will tell us what our 'parent contribution' is going to be? Obviously, FAFSA might determine that we 'should' pay $10K, but if we don't, then they (the college, and or DD) has to figure out another way for the bills to be paid. So why tell us how much we should pay?

I've got no stake in this, it's just theoretical, but I'm curious....

Whether the parents actually intend to contribute to the students education is irrelevant, as crazy as that sounds There are very specific guidelines for whether a student is considered a dependent or independent see http://www.fafsa.com/understanding-fafsa/fafsa-dependency for the latest posting from FAFSA. If the student does not meet the criteria for independence then they are dependent and their parent/guardian MUST complete a FAFSA whether they intend to contribute or not... without one on file, the student is ineligable for aid of any kind.

And yes, the figure that FAFSA come up with for parental contribution is often outrageous

 

[magicmommy]

Was there any reason to post this other than to brag about yourself? Seriously, this post was unhelpful and completely unneeded. Would you like a cookie or was your own bragging enough reward?

Wow. Sorry you felt this was unhelpful. They asked a question and I provided an answer along with the reason why. Hopefully they were not as offended as you apparently were. I find your response hurtful and rude.

 

[prncess674]

Wow. Sorry you felt this was unhelpful. They asked a question and I provided an answer along with the reason why.

Your post had nothing to do with loans or the necessity to fill out the FAFSA for such loans. The OP did not ask what are reasons to not fill out the FAFSA at all. The OP wanted to know about filling out the FAFSA to get private loans.

 

[Sadie22]

We saved money for our sons' college educations. Due to the Maryland Distinguished Scholar Program and some other merit scholarships, we spent very little of what we had saved on college for the eldest, which meant we had more money available for siblings when their turn came. It also meant that the eldest had more money for Scouting High Adventure trips, a computer, etc. in high school.

No one took out any loans. I am a very big proponent of avoiding student loans, or parental loans for their children's educations, for that matter, if at all possible. Some loans may be necessary, but the cost of the education needs to be weighed against what that means for the one who has to pay back the loans. The point I want to drive home is that some families avoid the FAFSA or other paperwork for whatever reason and may lose out on some financial aid opportunities. It's important to research all the options and get the paperwork done even if at first it may not seem useful. DS received some scholarship funds we were not expecting just because his name was in the pool.

A scholarship through my husband's corporation required the FAFSA as well as report cards (every semester) for renewal.

 

[Mrs. Bradbury]

We were just going to get private loans for my child's college education not the Stafford? Do we still need to do a FAFSA?

My answer is, "Probably". I did notice this year, when filling out ours for my kids, that if you have filed your tax return there is now the option of importing the information from the IRS, making it less work. It was downright easy, to be honest.