I’m a student at a big 10 school. I’ve been getting the majority of tuition covered by fin aid for need based purposes. Each semester, my parents have taken out the remainder in PLUS loans. Due to family issues and the split of finances, I was informed today that it was not affordable to take out more loans for my education. I can’t apply for scholarships, because my school will take away given grant money for need based purposes. Is my only option to look into private loans? Any suggestions on reputable companies?
Yikes. What year are you in college? Have you reached out to your school? You may need to request “Professional Judgement” to have your FAFSA changed to reflect your custodial parent’s income.
Are you living with your mom while school is out? Has your dad moved out?
@mom2collegekids, I think OP is a rising junior.
Is this a FAFSA it school or one that requires the CSS Profile? Students can’t get private loans, so if your parents aren’t willing/able to pay you may have to transfer.
I’m guessing that you’re either at NU or UMich.
Have you talked to their FA office about your options? Have you asked for Professional Judgement about your divorcing family?
I am sorry about your parent’s split. Parents are still first in line to pay for college and divorce does not change that. it sounds like parents were taking out loans to pay the EFC.
Even if OP is eligible for federal aid due to the FAFSA of the custodial parent, the need based aid probably will not change if the non-custodial info is factored.
if you must transfer, are there any affordable options on deck?
You really need to look at commutable options near one of your parents. How much is the loan part? Which school are you at now? (oos public that uses profile is not going to help you) Will both your parents stay in Illinois for the near future? What is your major?
<100K before divorce was a pretty tenuous position to take plus loans from IMO, 100K now divided into 2 households means stopping this now is a more than smart move and you should be on board as you are paying this money back.
So sure, first thing is to get your parental financials, find out your budget, approach your current school and apply for a change in status, but have a real plan B for fall.
How much in loans were you anticipating them to take?
Can you go over the custodial parent’s finances and see if it changes your EFC substantially? Even a zero EFC is just going to get you about $6k in PELL grants and some of $7k in Stafford loans having interest subsidized. Your schools might have some student loan possibilities that they can extend to you. If they cannot come up with additional grants, and I doubt they will, you can ask about that possibility
However, how much a young person should be taking out in loans is a shaky issue. It’s probably not a good idea if the gap is great.
In cases I have known when this has happened; when parents could not or would not continue to pay tuition after an initial committee to do so, the kids transferred to affordable options. You should start looking at what’s out there.
you may need to request a year of absence from your college while the dust settles. Your parents have a LOT of expenses right now…attorneys, two households, etc.
if you take the year of absence, try to work/save during that time. don’t take any classes anywhere… then submit FAFSA in October using only the financial info of your custodial parent (not both parents). perhaps you’ll get more aid that way for 2021-22 school year.
or, see if you can take classes online next year and live at home.
BTW…probably only ONE parent took out the Plus loans, but that parent needs to make sure those loans are included in the divorce settlement so that parent isn’t stuck paying them all back. just something to mention to your parent, as this happens more than you know.