<p>Help! Our son is starting college in the fall. We've filled out his FAFSA and it came back recommending the majority of his tuition be paid by Federal Direct Plus (Parent) Loan...in other words, my wife and I foot the bill. Our household income is around $125k, but our credit is poor and we have three other kids and very large medical bills. We've applied for scholarships, but not with much luck. He has a 3.45 GPA. Anyone with any ideas???</p>
<p>Have you received your son's financial aid awards from the colleges yet? Did any of the schools also use the CSS Profile (which uses other asset information like home equity to calculate your contribution)? If you have very large medical bills, this could be viewed as a special circumstance by the college financial aid office. You would need to contact them, and request a review of this special circumstance. You must be prepared to give them every bit of documentation of these medical expenses in writing (copies of everything would be good). The college would then have the information to deal with a special circumstance. Best to call the finaid office and ask to speak to someone in the know about this situation.</p>
<p>Welcome to the upper middle class. You are going have to do what you gonna have to do; Vote, who can you can give you the most money.</p>
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** but our credit is poor
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**</p>
<p>keep in mind:</p>
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**If a student's parents are denied a PLUS loan, or the college financial aid administrator determines that the parents are likely to be denied a PLUS loan, the student becomes eligible for increased Stafford Loan limits. Only one parent needs to apply for and be denied a PLUS loan. However, if one parent is denied a PLUS loan and the other is approved for a PLUS loan, the student is not eligible for increased Stafford Loan limits.
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<p>So I should apply for the PLUS even if I'm almost certain I'll be denied?</p>
<p>Good feedback...thanks. What is the CSS profile?</p>
<p>For FAFSA, if you have large medical bills, you can ask for a special circumstances adjustment. We had one last year. We had to produce a mountain of supporting documentation - everything from doctors bills and insurance statements showing our share of the payments to statements from the pharmacy and the mail order prescriptions co. we have to use (our share for my husband prescriptions run into thousands a year - and we have a prescription plan). We were also able to include our medical insurance payments as they are after tax and high. If it is approved they go into your FAFSA and adjust the income figures then the numbers are run through the formula again producing a new EFC. So $10,000 in medical costs will not reduce the EFC by 10,000 but by whatever % of your income goes to the EFC (which can be from in the 20s to @ 47% depending on income/asset levels). But, with an income of 125k, it probably won't reduce your EFC enough to qualify you for federal grant money. Worth a try to see if it helps.</p>
<p>More information here
FinAid</a> | Professional Judgment | Medical and Dental Expenses
FinAid</a> | Professional Judgment | Special Circumstances</p>
<p>If you apply for the plus and are denied your student is eligible for additional Stafford loans. The normal max for a freshman is $3500 - I think they can borrow an additional $4000 if the parents are turned down for a plus loan. But you must apply and be turned down to get the exta stafford. it is still a loan - just in the students name instead of parents.</p>
<p>Our son will definitely need a student loan. Can he get one on his own without our co-signing? Our credit just isn't good enough.</p>
<p>The CSS Profile is a financial aid application document that is used by a number of private universities and colleges, and some publics as well. If your student's college requires this, it must be done as part of your financial application to the school. </p>
<p>Did any of your son's schools require the Profile? </p>
<p>If your son's schools are FAFSA only (no Profile needed) schools, keep in mind that even IF he got the maximum federal aid (and that would not be the case with an income of $125,000 for the family), the federal aid provided would not pay the full costs of even attending your instate public universities. It could cover the costs of attending a community college and living at home. Swimcatsmom has the max amounts of federal aid (right??). </p>
<p>Is there a college on your son's list that your family can afford to send him to? </p>
<p>I'm with others...take documentation of your medical bills to the finaid office and ask for consideration of this special circumstance. The one thing to keep in mind, however, is that if these medical bills were for 2007 only, you could face this situation again with NO special circumstance a year from now. Just a thought.</p>
<p>I do hope it all works out for your son.</p>
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Our son will definitely need a student loan. Can he get one on his own without our co-signing? Our credit just isn't good enough.
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Stafford loans your student can get without a cosigner I think as they are guaranteed against default by the govt. As i said before - max Stafford for freshman is $3500. But an additional $4000 is possible if you (the parents) apply and are turned down for a parent plus.</p>
<p>Info on student loans here
FinAid</a> | Loans | Student Loans</p>
<p>other loans here
FinAid</a> | Student Loans</p>
<p>Private loans would mostly require a co signer.</p>
<p>To respond to the person who wanted to know if he should apply for a PLUS loan even if he knows he will be denied (or she). The answer is yes. The parent has to be turned down before the higher Stafford limits kick in. You will be denied for a PLUS loan if you are 90 or more days delinquent on a loan or if you have been subject to a default determination, foreclosure, or repossession in the past 5 years. Lenders can do what the industry calls a "second look" and approve you for credit if there are extenuating circumstances, such as that you have one delinquent loan, but are current on a number of other loans. The extenuating circumstances have to be documented and lenders don't have consider them. The rate on PLUS loans is established by the government and is a good rate for an unsecured loan; however a parent who has equity can probably save money by getting a home equity loan.</p>