<p>does anyone know say if my parents are in debt over 10,000 in credit cards if it'll effect my financial aid?</p>
<p>it has no bearing on your financial aid -- but it might make it harder for your parents to pay their EFC.</p>
<p>And probably darn difficult for them to be able to borrow any money to help you with your costs. Or even as a possible co-signer on a loan that you may want to take out.</p>
<p>Here's a piece of advice. Don't put any of your expenses on a credit card!</p>
<p>If they pay off the credit card debt with a home equity line of credit or loan then it may decrease their assets but probably won't decrease them signficantly enough to help your aid package</p>
<p>It isn't considered by FAFSA or Profile as far as I remember when filling it out. Whether that would affect them co-signing for you probably depends more on their credit rating (which may be excellent if they always pay on time) and debt ratio (debt to income ratio) than on how much debt they have. My understanding is that PLUS loans are only denied if there is adverse credit. In other words, very late payments, bankruptcies, etc --not just carrying a credit card balance. So please don't panic. Someone made a good suggestion about having them pay off their credit with home equity--especially if making the monthly payments on the credit is dragging them down. If by any chance, your parents are denied a PLUS loan, you automatically qualify for another $4000 federal stafford loan I believe. If that happens, check with the financial aid office. You may want to (strongly suggest) apply to at least 2 financial safety schools if you think your parents may have trouble paying their EFC. Unless you are likely to draw very large merit scholarships, most schools will expect your parents to pay the EFC. To get an estimate, go to <a href="http://www.finaid.org%5B/url%5D">www.finaid.org</a></p>
<p>Summerbreeze is correct, it isn't the amount, it's the credit rating. We had credit card debt and it wasn't applicable (too many people would get more aid!)and my friend unfortunately, MUCH more than 5,000 and they had no trouble getting loans. They didn't want some of them, but the offers were there. It's your ability to pay and how you have paid your bills. If you were ill or lost a job, etc. you can appeal and write a letter stating why your credit took a dip.</p>