Answer to original question is that most schools that say they meet full need include loans… only a handful meet 100% need with no loans.
But while many offer the Student loan (and I think most on CC get the idea of this “skin in the game,”) actually “packaging” the PP in the FA offer is dicey. It can be pretending. “Hey, we got you to zero,” when it’s cost, not a gift.
PP should be a family choice, not a way to make it look like help is better than it is.
It’s a parent loan. In all cases…parents should be alerted to parent loans…and realize these are NOT student financial aid. They are parent loans.
TBH, I would never suggest a parent take a Plus Loan for any reason.
One way or other, they should explain what Parent Plus Loan is. Some schools include very useful information in addition to the FA package about other options, payment plan, etc. For a school that include the Parent Plus Loan in the aid package without explanation, it is not really responsible. Obviously, not everyone would even get the loan approved.
I echo kelsmom’s request: if people know for a fact that there are colleges that do this, let’s name the names. It would certainly be helpful to have this information for any student or parent formulating a list of colleges to look at or apply to, if need-based financial aid is a consideration.
One federal loan reform I think needs to happen…Parent Plus eligibility. Really, right now, if you can breathe and have paid your bills on time, you likely will be approved…for up to the cost of attendance.
I personally think that is irresponsible. The bar needs to be set higher for eligibility so so folks are not actually encouraged to over borrow…who might not otherwise be eligible for loans of this amount.
My opinion.
I know, (data point of one, of course) that my S’s “meets 100% need” school met need with no loans (it was a no-loan school, also), and then offered the student loans and PP loans as a possible choice to meet EFC.
A few years earlier, before it went 'no-loan" it offered the student loan as part of the package (the rest was grants), and then, as above, offered the PP as a choice to pay the EFC.
So PP loan was listed, but at the same time, full need was met (generously, I might add.) I think that’s how it is supposed to work with the actual “meets full need” schools. It is worrisome if other schools are packaging deceptively.
@BelknapPoint -Wow! Our FA package is similar to what you listed. A $30,000 loan?! Not gonna happen!
Ever since they changed the formatting of financial aid letters, Parent plus loans are not part of the financial aid package
The award letter is broken down in sections:
Cost of attendance
EFC
The package- which can consist of federal aid, state aid, scholarships, grants, x
Then there is a net price section which is how much the family and student will have to pay along with options to pay the net price.
For student:
Sub and unsubscribe loan
Any school loans that are being offered to the student
work stdy
Parent PLUS loan
No one is forcing anyone to take a parent plus loan, it s just listed as an option to pay the cost not covered by aid (EFC and/or any gap in the financial aid package)
http://financialaid.buffalo.edu/prospective-undergrad/review-award-letter/
@sybbie719 I am confused. We have started to receive FA letters. We completed FAFSA, but we don’t remember completing PLUS loan application.
One school out of 7 listed PLUS on the FA award letter.
Does this mean we are approved for the PLUS loan?
If you want to take a plus loan, you must apply for one If you are not approved, then your child will be eligible for an additional 4k as an unsubsidized loan.
@sybbie719, that is what I thought, but I found it strange the school presented it as if we were approved and just needed to accept
I wish there was a standard format. My son received one financial aid award letter that did not include the COA
Of course we know the COA from running the NPC and doing some worksheets
^^^
The COA (at least the direct billed costs} should be available right on the school’s website.
@Longhaul , did the school not include a glossary or explanation of awards with the FA award letter?
@JerseyParents keep an eye on the COA. Some colleges have NOT updated for 2018-2019 yet.
That is true. My D’s school announces new tuition rate in June whole R&B may be on a different date.
@kelsmom , the school puts the letter on the student portal. There was no explanation a separate application for PLUS is required.
This is child 2. Between the first child and this one, I’ve seen 23 award letters and never saw anything that listed PLUS before.
In the example you gave, the school gapped the student by 10k.
From our limited experience, none of the schools that were published as meeting full need listed a plus loan. They didn’t all calculate our need exactly the same (but pretty close.) The only one that listed a plus never claimed to meet full need.
I’m curious to know given my EFC is 0, would the financial aid package still include federal work study, and subsidized/unsubsidized loans?! What would the layout look like?