Do you have to do FAFSA to get loans?

[juliebean]

That is not possible - you would be offered, at worst, unsubsidized stafford loans. The only two exceptions I can think of would be if you had grants or scholarships equal to the COA (cost of attendance). Or are not a US citizen. Other than that, you could have a million dollars and still be offered unsubsidized.

Also, a lot of private loans might offer a teaser rate (like a 0% cc offer - but it last for 6 or 12 months) - but banks make a big profit on these and the interest rates (long term - not teaser), are high. The stafford loans are ran by the government and the goal is to help the student, not make a profit.

 

[mrsklamc]

Other things that would make you ineligible for loans-

1)Currently in default (eligible again when you repay)
2)Student loans that were "Written off" - permanently ineligible to receive gov't financial aid
3)Failed to register with selective service and are now too old to do so- also permanently ineligible.

 

[Debbie Jean]

That is not possible - you would be offered, at worst, unsubsidized stafford loans. The only two exceptions I can think of would be if you had grants or scholarships equal to the COA (cost of attendance). Or are not a US citizen. Other than that, you could have a million dollars and still be offered unsubsidized.

Also, a lot of private loans might offer a teaser rate (like a 0% cc offer - but it last for 6 or 12 months) - but banks make a big profit on these and the interest rates (long term - not teaser), are high. The stafford loans are ran by the government and the goal is to help the student, not make a profit.

Or she may have gotten a home equity loan or line of credit... not something most people want to do in this economic environment.

 

[luvsJack]

Always fill out the FAFSA. If there is any federal money out there that you or your child may qualify for--this is what gets it to them. It tells the Federal government and the school what you qualify for because it assigns you an EFC number. That number is used to determine how much money, if any, you may qualify for.

Many schools require it for scholarships because they want you to get the government's money first. If you apply for a sub or unsub stafford loan--FAFSA required. Same thing with work study.

Also, always try first for free money, then stafford loans, then "other" loans. You will have the least amount to pay back this way.


As for the parent question: According to FAFSA, your student is considered dependent until the age of 24, he/she is married, has a child or is active military. VERY FEW people get around this. If the parents (both) have died or abandoned the child then a change of dependency status can be done but its not common. Most of the time if a child is abandoned or orphaned, someone else takes custody and then THAT person's income is put on the FAFSA.

Years ago, the age limit was lower and it didn't take a lot to show that a student was independent (rent receipts and a bill or two), too many people took advantage of it and so now the rules are stricter.


FYI to anyone with a high school senior: If your child has a job their income can really hurt them when it comes to getting Pell. I have heard FA people say that its as thought the government thinks that the student should be putting all of their money away for college.

When older ds was a senior, he did not have a job and his friend did. When we each filled out the FAFSA, ds qualified for some Pell and the friend did not. Our income was higher than that of his friend's parents.

 

[luvsJack]

Other things that would make you ineligible for loans-

1)Currently in default (eligible again when you repay)
2)Student loans that were "Written off" - permanently ineligible to receive gov't financial aid
3)Failed to register with selective service and are now too old to do so- also permanently ineligible.

The bolded is not true. They just have to show that they are too old to sign up for it. We have had to get that proof from students and then they get their Pell or loan.

If you are in default on a loan you cannot get ANY Title IV money until it is repaid and you show proof of not being in default.

I am not sure about the written off loans, but will ask our FA director.

 

[delmar411]

I scanned through the thread but didn't see it mentioned. With the changes made in the banking industry and financial aid, private loans have dried up. Many banks no longer offer them at all. So I'd do some checking on that before assuming you are better off in a private loan. These changes have occurred over the past 2yrs.

 

[luvsJack]

I don't know why someone wouldn't fill out the FAFSA

Why? Because I filled it out for two years but didn't receive anything. Plus my neighbor said she got private loans which had a much better interest rate than the government loans!

Stafford loans are at 6.8%--what is the rate on the private loans?

And the pp is right, you would have to be making a HUGE amount of money not to get an unsub loan.

 

[juliebean]

Other things that would make you ineligible for loans-

1)Currently in default (eligible again when you repay)
2)Student loans that were "Written off" - permanently ineligible to receive gov't financial aid
3)Failed to register with selective service and are now too old to do so- also permanently ineligible.

yes -every once in a while these would come up. Also, below 6 credits or a school lacking accred. But, the great majority of students are eligible.

 

[luvsJack]

yes -every once in a while these would come up. Also, below 6 credits or a school lacking accred. But, the great majority of students are eligible.

As I said, at least the part about selective service is not true. To get any Title IV money, a male student of the age to sign up has to be signed up. But I had a student come to me this semester that was too old to sign up but yet FA had asked for proof. The FA office required a copy of his birth certificate. He got his financial aid.

You do have to be at least 6 hours, but schools without accrediatation can and do get Pell and loans for the students.

 

[mrsklamc]

The bolded is not true. They just have to show that they are too old to sign up for it. We have had to get that proof from students and then they get their Pell or loan.

It is true, unless the student can show by a preponderance of evidence that they truly did not know they were to register. I only had one student that was denied aid for this reason. Since he graduated in 1968, we were unable to accept that he 'did not know he had to register for the draft.'

It is NOT TRUE that if you are too old you can simply show proof that you are too old, it's fine.

 

[SleepyatDVC]

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

Well, in my case, I went to a community college and lived at home and then transferred to a state university where the tuition wasn't too outrages. My parents paid for everything OOP. They would have borrowed money and sent me someplace more expensive but I couldn't justify spending that much money!!

It wasn't that my parents were refusing to fill out the FAFSA. It was because their taxes were complicated and entail utilizing 6 month extensions so the tax information was never available in time.

They didn't get a salary. They were small business owners. When there was extra money, they paid themselves, when there was not, they didn't. Sometimes, they had to either dip into savings or take out personal loans to subsidize the business during lean times.

They were busy managing the business and had no idea how to do the taxes, which were sent out to the business accountant to handle. Basically, they sent the checkbooks and box of documents to the bookkeeper who sorted it out for the accountant every year to file the returns. The accountant ALWAYS filed tax return extensions for the business because it takes them time to go over everything AND because I think it is easier for them because they have so many accounts to handle.

The business tax returns aren't filed until 9/15 every year and thus, my parents' personal tax returns aren't filed until until 10/15 because they need the K-1 forms from the business to file their personal.

Thus, forget about me ever being able to have them fill out any financial aid forms. The information was never available by April, much less January, even as a guessitmate.

 

[maggiew]

I don't know why someone wouldn't fill out the FAFSA

Why? Because I filled it out for two years but didn't receive anything. Plus my neighbor said she got private loans which had a much better interest rate than the government loans!

I really think you should read the thread called "$110,000 in college debt" or something like that. There is a lot of information about private vs. stafford loans in that thread. Like not being able to consolidate private loans and the loan forgiveness/reduction of stafford loans based on certain criteria.

Maggie

 

[luvsJack]

It is true, unless the student can show by a preponderance of evidence that they truly did not know they were to register. I only had one student that was denied aid for this reason. Since he graduated in 1968, we were unable to accept that he 'did not know he had to register for the draft.'

It is NOT TRUE that if you are too old you can simply show proof that you are too old, it's fine.

Well, someone needs to tell the guy in some of our classes to quit spending that refund money he got because he didn't really get it or the WIA money that paid for his program.

They didn't ask for proof that he did not know he had to register. They simply asked for proof that he was too old to sign up. I didn't approve the money and WIA comes from a outside agency, but I know he got it because he stopped by my office and thanked me for helping him.

 

[friskykitten]

If your DD qualified for any Pell Grant money she is doing better than most kids I knew. Pell Grants are free and clear money you don't have to repay. I would have been doing flip flops for ANY grant money! Going to college for free is not a right in this country. I graduated in one of the first classes that had access at any income to unsub Stafford loans. My parents didn't have the means to pay for my school and I am thankful that the US Government was willing to give me (an unemployed 17 yr old with only a hope and a dream) an unsecured loan to better myself. I had to repay every single dime and only had less than $500 per semester in Stafford subsidized loans. Just because you were peeved over the lack of FREE money remember that many many more received ZERO free money.

prncess674--Since you went to college you know that "peeved" (your word) and "paltry" (my word) are not synonyms. Nowhere do I say that I am peeved about the amount she is getting. I said it was paltry. Meaning small compared to the cost of her education and the amount she is taking out in student loans to cover what the PELL, her scholarships and her own money from working is not. She will also have to pay back every single dime that she borrows just as you did. That does not mean that I, as her mom who also had to pay off my own education, cannot wish she could get more FREE help/money. In addition, I also have not seen one single person in this post say that they think they or their family member are owed a FREE college education.

 

[friskykitten]

Sorry you think the Pell grant is "paltry", but it is free money provided to your child. Most people I know would be very happy to receive some free money for their college bills!

allison443, you are absolutely correct that any money DD will not have to pay back is a blessing. A huge blessing! Of course, we are grateful she qualifies at all. But again, as I stated in a previous post, compared to the cost of her education that she is not able to cover with her scholarships and wages the PELL she was awarded very small. A BLESSING indeed, but small in the scheme of things. Like some others here, my DD will be doing this on her own with very little help from Mom & Dad. We do what we can with the savings we had set aside for her but the rest she is having to do on her own. For obvious reasons, I would much rather make more than enough money to send her to a top-notch university paying for it all myself without needing a PELL grant at all. But this way she has a stake in her own education and she will hopefully work that much harder at school knowing that she is paying for most of her future possiblities herself.

 

[juliebean]

As I said, at least the part about selective service is not true. To get any Title IV money, a male student of the age to sign up has to be signed up. But I had a student come to me this semester that was too old to sign up but yet FA had asked for proof. The FA office required a copy of his birth certificate. He got his financial aid.

You do have to be at least 6 hours, but schools without accrediatation can and do get Pell and loans for the students.

I thought that accred. was now required, since some private "tech" colleges - for lack of a better description, had very few graduates to show for the funds. Not sure, maybe that never went through?

By far the biggest reason to deny a student aid was failure to maintain a 2.0 - but I don't know if that was just the univ. I worked for or all. The others - reaching the max loans, etc. - would come up rarely.

 

[SandrA9810]

I'm actually surprised by all the benefits that California hands out to it's residents. Going to community college is practically free with all the state waivers and the fact that each credit is so cheap in comparison to begin with. Then there's a handful of programs and state grants for University. So it's easy to understand why so many adults hit the books if they lost their job.

I know Florida has the Bright Future Scholarships and all, but it's still rather expensive to go to school in Florida. And credits are a lot more expensive too.

I don't know if there's any one else from California who can vouch for this, or know more about what's offered here, but it's pretty good from what I can tell.

 

[SondraC]

I'm actually surprised by all the benefits that California hands out to it's residents. Going to community college is practically free with all the state waivers and the fact that each credit is so cheap in comparison to begin with. Then there's a handful of programs and state grants for University. So it's easy to understand why so many adults hit the books if they lost their job.

I know Florida has the Bright Future Scholarships and all, but it's still rather expensive to go to school in Florida. And credits are a lot more expensive too.

I don't know if there's any one else from California who can vouch for this, or know more about what's offered here, but it's pretty good from what I can tell.

Well my step dd is leaving California (she graduates high school in June) to come to college in Pennsylvania. The schools are over crowded, and majors are impacted. Her mom (who thinks California is the end all be all, and the perfect place to live) was shocked that so many kids from her senior class are also leaving the state to go elsewhere.