financial aid question

[Grumpy's Gal]

if you file the FAFSA and you get no pell and no stafford loans, will you get an offer for a parent plus loan?

I guess my question is, does everyone who files a FAFSA get that offer of a parent plus loan? or do you have to qualify somehow?

There's too much to remember about financial aid! i think my brain is frying while we wait on the papers to come in the mail.

 

[mamasuf]

Everyone is eligible for a Stafford loan as long as you file a FAFSA. It may only be un-subsidized but anyone (all students) can get one. I believe you have to qualify for a parent plus loan. Remember to only take the pp loan out in one parent's name because if that parent, God forbid, dies, the loan is forgiven.

 

[Grumpy's Gal]

Thank you! There is soooo much information and it's all so confusing.

Anyone else have any financial aid facts to share?

 

[itdjbw]

What is a Stafford loan?

We have files FAFSA but haven't heard from the school DD just got into yet.

 

[DebMcDonald]

Last year after filing our FAFSA which said we could afford $32,000 out of pocket the only loan we were offered via the school financial aid packet was $2300 per semester, I know it's unsubsidized, but I'm not sure what it is exactly, but it's my daughter's loan.

 

[DianeV]

Subsidized loans do not accrue interest while the student is still in school or on a deferrment..the unsubsidized loans start accruing interest right away

the most a freshman can get in subsidized loans is $3500 and $2500 in unsubsidized

Each year the subsidized amount goes up a little

 

[hapandpam]

If you take an unsubsidized loan you can periodically pay the interest on it. You will be able to check the interest online and then pay it.

 

[espana94]

Subsidized loans do not accrue interest while the student is still in school or on a deferrment..the unsubsidized loans start accruing interest right away

the most a freshman can get in subsidized loans is $3500 and $2500 in unsubsidized

Each year the subsidized amount goes up a little

If the parents are denied for a Plus Loan, the student will be approved for an addtional $4000 per year in unsubsidized Stafford loans. However, the parent must apply for the PLUS loan on the federal website and be denied in order for the school to increase the amount of the student's unsubsidized loan.

 

[Grumpy's Gal]

Each year the subsidized amount goes up a little

based on what?

 

[allison443]

based on what?

The maximum depends on what year the student is in. There is a limit for freshman year of $5500 (I believe), and it increases to $6500 for sophomore year, then $7500 for junior and senior year. (I think these are the accurate amounts afaik)

 

[clh2]

based on what?

The year of school you are in. Sorry - I only know the unsubsidized amounts:

First year - $5500
Second Year - $6500
Third year and higher: $7500

 

[tinan]

We're in the same boat as you, but a little lower amount. Our dd is applying for scholarships like crazy because she has had her crazy mom's foot up her behind. So far she has been offered a few scholarships which will help. In the event that we still need additional funding, we will be looking at the unsubsidized student loans instead of the PLUS loan. In our case, we are choosing this route because although the interest is adding up while in school we can make interest payments on the unsub. loan and it is not actually due until 6 months after graduation/ceasing to attend school. The PLUS loans on the other hand will have payments due right away. Just because of how we are paying off our own loans, this works best for us. You have to look at your own financial situation to decide which is the best route for you. I must admit that after talking with some of the other teens in her class, I believe she has sent out the most scholarship apps.

 

[Sarah'sMomfrom PA]

Just wanted to point out that the Parent Plus loan has the same provisions for repayment as the students unsubsized loans. My daughter is in Pharmacy school (6 year PharmD/doctorate program) and our parent plus loans are not due until 6 months after she finishes school. The interest still accrues from day one and you can pay on the loan every month (we pay $200.00 a month and in December add $100.00 to it) so that we can take advantage of the $2500.00 income tax credit. You don't even want to know what amounts of loans my daughter has so we try to help her out whenever we can but it is a very good profession to be in so we feel that it was worth it.

 

[lost*in*cyberspace]

Just a warning; be very careful about taking private loans. If the worst should happen and the child dies, these loans will not be forgiven. Federally subsidized loans are, even PLUS loans are forgiven. You never know what the future holds and I have heard of parents, grandparents, etc. who were co-signers have to pay off these loans after they lost their child/grandchild.

 

[runwad]

Just a warning; be very careful about taking private loans. If the worst should happen and the child dies, these loans will not be forgiven. Federally subsidized loans are, even PLUS loans are forgiven. You never know what the future holds and I have heard of parents, grandparents, etc. who were co-signers have to pay off these loans after they lost their child/grandchild.

..and just to add to this, if you do take out a private loan for your student get yourself some term life insurance on your student for the amount of the loan. In case they should pass away, you'll get the life insurance money to pay off the loan.

 

[Riverhill]

My DD is working a CO-OP program 6 months of the year and attending classes the other 6 months. If she take out a loan for the full cost of the 1st year and does not need it all since she will be working does she have to take all the loan money or does she just use it to repay on the loan?

 

[clh2]

My DD is working a CO-OP program 6 months of the year and attending classes the other 6 months. If she take out a loan for the full cost of the 1st year and does not need it all since she will be working does she have to take all the loan money or does she just use it to repay on the loan?

They disburse the funds for a loan "by each semester" so there is no way they would she would have access to any loan money in the semester that she is working.

I'm not sure that makes sense: so - If she is entitled to a loan of $6500 for the 2013/2014 school year, and she is a student in the fall of '13; she will have the ability to accept a $6250 loan for that semester. if at the beginning of the spring 2014 semester she is working and not paying for anything at the university, she will not be allowed to take any additional loans out.

But - I should probably admit - I am just a mom - and you might get different info if you had your DD call the financial aid office for an "official" explanation.