Loans - Unsubsidized or other choices

<p>When filing the FAFSA, if the only aid available is the unsubsidized loan, is it better to look for loans elsewhere - parents loans, etc.?</p>

<p>First, you won’t get aid when you file FAFSA. The college you attend will use the info from FAFSA to prepare the financial aid package, including loans, for you. Stafford, Perkins, and college-funded loans are usually the only type of loans that students qualify for without other cosigners. The rates are pretty reasonable - unsub Stafford is 6.8% - for kids with little/no income and credit history and they offer generous repayment options including loan forgiveness. Parents may do better with home equity loans and very good credit scores. But then the loans are in the parent’s name and that’s a factor for many parents who have other financial obligations to consider.</p>

<p>Thanks, that makes sense. I called a few of the colleges that also require the CSS/Profile. They said if we will only qualify for the loans, that we don’t need to submit the Profile (which sounds good because it looks like it’s a lot of work and required in December of this year). Is there any reason why I would go ahead and submit the CSS/Profile in this case?</p>

<p>How do you know that you will only qualify for loans from a Profile school? Is merit aid a possibility and, if so, do any of the schools require filing for scholarship consideration?</p>

<p>Yes, merit aid is likely at these schools, but after calling a few of them today and looking at the other school’s websites, none of them require the PROFILE or FAFSA for the merit aid consideration.</p>