<p>I (well, my parents, actually) just got a letter that says this:</p>
<p>"Based on our preliminary review of your records, you are authorized to obtain pre-approval of Federal College loans for your child's academic school year.</p>
<p>Pre-approval is a privilege and convenience for select candidates. It is not necessary to know which college (my name) will attend. Pre-approval lets you know the amount of Federal money that will likely be available to you so that you can make more informed college choices."</p>
<p>and then it says:
Student: my name
Amount: up to 100% of all costs
College: to be determined
Academic Year: 2007-08</p>
<p>What does this mean exactly? Do I not need to do FAFSA of CSS? Does that 100% mean anything at this point? I've tried to read up on it on their website, but sometimes things can be a bit blurry, and usually people on here know what they are talking about.</p>
<p>It gave me a number to call, but it's Saturday and they aren't in office. Any help/guidance is greatly appreciated.</p>
<p>Sounds odd - who did the letter come from? Is it from a loan company maybe? Just based on the wording it sounds somewhat suspicious (but I do tend to be a suspicious sort especially with money related matters with wording like 'select candidate', 'privilege' & 'convenience' - kind of shreiks SCAM ALERT to me)</p>
<p>From what I have heard the only way you can be awarded federal financial aid is by completing FAFSA. You may qualify for grants (which unlike loans do not have to be repaid) but you will not get them without completing FAFSA. So my 2 cents worth is that you absoultely must complete FAFSA and Profile (if your school requires it). And enquire very carefully into who the 'they' are that are sending you this letter.</p>
<p>We got that letter (or one just like it, anyway) the other day. Interestingly enough, I hadn't even filed FAFSA or PROFILE yet when I received it. We are just on some list due to being parents of a senior. I threw it out, and I suggest you do the same. It's kind of like those pre-approved home equity loan solicitations --- they always say they can save me money. How the heck do they know? They don't, but it's a good bet enough people fall for it to make it worth their time.</p>
<p>The posters are correct. These are solicitations and you will continue to get them throughout your college years. They are for loans (and not the Stafford or Perkins).</p>
<p>Fill out the FAFSA (and the Profile if colleges require it).</p>
<p>I got a similar letter. Saw through it immediately, although, they really did try to make this letter seem official. It was from the "Federal Loan Department" of some bank in Cali. </p>
<p>I guess you could apply for a loan from these folks. I think that this financial institution is using somewhat questionable tactics.</p>
<p>With all the recent HERA changes inacted by our fabulous government, we are seeing a huge increase in unknown private educational lenders, who may or may not be legitimate. My suggestion would be, if you are in need of private loans, to seek advice from your FA Office so you end up with a lender who has a good reputation and will be around when you enter repayment.</p>