<p>Does FAFSA take into account my parents' debt? My step-father is a doctor and has a giant amount of medical school loans that accumulates in interest nearly as fast as he can pay it, and as a result my college choices are severely limited. Does anyone know if these kind of loans are taken into account? Thanks.</p>
<p>No FAFSA does not take parent’s student loan debt into account.</p>
<p>swimcatsmom,
I certainly hope that you are correct! My daughter will be off to college next year, and we will be needing aid. I am in a dispute with Dept. of Education concerning a $700 gov. insured student loan from 1969 (I paid it back, but they have no record of my payment & now want me to pay them $1400). Anyway, are you absolutely certain that this alleged debt will not be a hinderance for us re: loans for my daughter?
thank you & Happy Holidays,
revmark77</p>
<p>revmark…yours is a slightly different situation. The government says you owe THEM money and it appears that you have defaulted on a loan from them from the 60’s (sheesh…did they JUST tell you this?? who has records from the 60’s anymore??). </p>
<p>The debt that is not considered on the FAFSA is CONSUMER debt. In other words, things like your mortgage payments, credit card bills, car payments, and other personal loan balances are NOT factored into the FAFSA formula. Neither are your balances for any other college loans you or the student might have.</p>
<p>BUT if you owe money (and it appears to be a default situation) to the federal government for any reason, there could be an issue with them dispersing any additional money to you…until this is cleared up.</p>