Parent Plus

<p>My daughter is in her 3rd year getting ready to apply for 4th year. I cannot afford to take out another loan. What are my options? How do I fill out the FAFSA to keep from being accepted for another loan so that she is offered more money.</p>

<p>I don’t think I understand your question.</p>

<p>Filling out FAFSA does not cause you to be accepted for another Plus loan.</p>

<p>Your D’s college uses your EFC to determine what the aid package is. If the aid package has included Plus loans (which you don’t have to accept), then likely the next one will, too. Not accepting the Plus loan doesn’t mean you get more money - otherwise EVERY one would try that route. The college gives what it can, and some puts loans in the package for what it can’t. .</p>

<p>I don’t think there is a “way” to fill out FAFSA to prevent a school from including a Plus loan, and instead give more money (because, again, if that was possible, then everyone would do it, because everyone would like free money rather than loans.)</p>

<p>Your situation isn’t unusual. During the college selection process, parents sometimes agree to Plus Loans without considering that 2-3 years down the road, more of such loans won’t be affordable.</p>

<p>If you apply for a Plus loan and are turned down, then your D can borrow the maximum Stafford amount for senior year $12,500</p>

<p>How much did you have to borrow last year for Parent Plus? Was that your only Parent Plus loan?</p>

<p>I guess I did not understand the way it worked. I do qualify for the plus loan and have had one since my son was in college. every year it seems to increase and I now owe more than can afford. I received a bill for 8000.00 last year. I realize this is not much but when you add it to the previous balances, it is much more than I can afford. I guess what I really need to know is what type of loans can my daughter take out that she can wait to pay on until after college.</p>

<p>I’m still a bit confused.</p>

<p>How much total in Plus loans do you have from your son’s education?</p>

<p>How much total in Plus loans do you have from your daughter’s education?</p>

<p>Your D can take out a Stafford Loan. </p>

<p>But, can I offer my 2 cents? IF your son didn’t have to take out any Stafford loans because you took out Plus loans FOR his educaton, then I think it’s only fair that you ask your son to help pay back some of the debt that was incurred on his behalf. His sister is going to have to have some debt because much of your borrowing power was used up on him. Otherwise, it really won’t be fair. (However, maybe I’m not understanding the situation.)</p>

<p>Maybe your son can (privately) agree to pay back half of your D’s Stafford loan, if you covered his costs with Plus loans and he didn’t take out any.</p>

<p>A student going into their 4th year can borrow $7500 in Stafford loans. The repayment can be deferred until they graduate. Have your kids not already been taking out Staffords to help contribute to their educations.</p>

<p>*Have your kids not already been taking out Staffords to help contribute to their educations. *</p>

<p>I may not be understanding the situation, but it sounds like when the FA packages came in with Plus Loans, Kay thought she had to take take out those loans. It sounds like she didn’t know that her kids could have taken Stafford loans for at least some of that amount. But, I could be wrong.</p>

<p>This is true. I thought I had to take the amount that they suggested. My D also took the suggested amount.</p>

<p>You may be able to answer this. I took the parent plus loan out. I have been paying extra and trying to keep the 8.5 percent daily accrued interest down. Today I find out one of the loans I have was sold off over the summer. All the extra payments allowed them to not send me a bill until March of this year. Now I am not ahead but behind on the interest. I thought the Mohela payments were coming directly from my account. Did not realize the amount taken out was only for one account not two.</p>

<p>I’m not sure this is true of all schools but we decline the PLUS loan every year by drawing a line through that amount and initialing the financial aid agreement before it is returned. That said, you still need to “pay” those amounts to the college for tuition/room/board but you do not have to do this with a Plus loan. It can be paid out of your savings, from a loan from your own bank, savings, etc.</p>

<p>You don’t have to take the Plus loans, you can pay from savings or get a private loan somewhere else. there is nothing you can do to get more than the max federal aid in stafford loans and if you have need, the perkins loan (amt varies from school to school). You can always ASK the school for extra $$ in scholarship/grants. But most schools don’t care how you pay your EFC. you could be selling blood for all they care.</p>