<p>For my first two kids, I never had to fill out FAFSA. I did, just in case, but we were fortunate enough not to have any demonstrated need. We did take out parent loans via PLUS. I think after a year or two, I quit filling out the danged form since it was not needed.</p>
<p>This time around, I did not want to bother with the FAFSA for a number of reasons. But S3's school requires FAFSA for PLUS. This was a new one for me. Any others who need to complete FAFSA for the PLUS? Is this a new government requirement or particular to the school?</p>
<p>Yes, I saw on finaid.org that’s a new requirement for the 11/12 academic year. Apparently to ensure that students are taking advantage of all the federal aid programs they may be entitled to (ie Stafford loans with the lower rate). Btw, does your son’s school participate in NY HELPS and have you ever compared that with the Plus program? I noticed that they also have fixed rates that may be lower…I didn’t check it out thoroughly though!</p>
<p>The school where I work has always required FAFSA for PLUS loans, for the same reason the FAFSA is now required for PLUS … to make sure our students were taking full advantage of available student aid. If a student declines the unsub loan but takes a PLUS, we reach out to him to explain terms, interest rates, etc. Sometimes the student still chooses to decline unsub, but many times the student is confused about the whole process & takes advantage of the unsub once things are explained.</p>
<p>I have one who graduated from SUNY Buffalo and borrowed once from PLUS without a FAFSA for him. Never even of NY Helps. Anyone have info on that? Doesn’t help me with this one since he is not at a NY college but my next one may well end up at a school in state and I am definitely having to borrow next year. </p>
<p>I didn’t want my kids taking the unsubsidized loans even though there was an interest advantage because I wanted to keep the loan repayment and records simple. We decided to keep them loan free as well. By taking advantage of current payments and direct withdrawal, we have reduced our loan interest pretty well.</p>
<p>This one in college was going to take out loans, but managed to get some grants to take care of that part of the expense he had committed to cover, and I did not feel that having him take out the loans anyways and then covering them made sense. It was just cleaner all around to just take a lump sum from the PLUS. I also felt that it was nice not having to fill out the FAFSA, but found out that was not the case. And that was for the last and previous school years, not the upcoming which I’m sure will be the same.</p>
<p>Here’s a link for NY HELPS…NY started this loan program under Patterson but the rates were initially quite high. Now they seem more realistic and are based on the credit score, like private loans, but have fixed rates and decent repayment options (both during and after). Unlike Plus, students can also take these loans although they may need a cosigner to get a good rate…though that’s not something you’re looking for, I think it’s one of the benefits to this program. There are many private schools in NY that participate, and some of the SUNYs do too…participation is growing every year.</p>
<p>I found out that FAFSA is required now for PLUS to ensure that the loan is being borrowed on behalf of a student who is eligible for federal student aid. Eligibility is determined through the student questions on the FAFSA.</p>
<p>Doesn’t filing the FAFSA to get a Parent Plus loan also have to do with the fact that we are now borrowing from the US government and not private lenders/banks as of 2011-2012 school year?</p>