<p>My child is a senior and we will probably not be applying for need-based financial aid. But we will complete the FAFSA in case we wind up taking a loan. Since we're not applying for institutional aid, can she check the box that says she's not applying for financial aid? Or do we have to say we're applying for financial aid in case we need to take the federal loan?</p>
<p>Yes, check the box saying no to FA. Then you can take out the Direct loan later. That’s not a problem but you’ll have to notify the school at that time so your child can fill out the MPN.</p>
<p>I’m sorry, what’s the MPN? Thanks for your response.</p>
<p>MPN is the Master Promissory Note which has to be completed before you get a federal loan. You fill it out on line. </p>
<p>If you are not applying for any financial aid from the school, just for federal loans and other entitlements, and things that may require a FAFSA, you check the NO box for fin aid on the college application. You can still fill out the FAFSA and be eligible for federal aid, just not the things controlled by the school itself. You have to fill one of these out to get even parent loans (PLUS) these days, and a number of state programs require it completed even if the money is disbursed without any need taken into account. </p>
<p>So if you want to get a subsidized loan you need to check the yes box for FA? My D was checking no because we figure that we will not be eligible to receive any (thank you doughnut hole). Anyway, thank you for the insight.</p>
<p>You don’t need to check the “yes” box for financial aid unless you want money from the school. By not checking “yes”, the financial aid office will not come up with a package for you. </p>
<p>However you can still fill out FAFSA. If your EFC from the FAFSA turns out to be less than the official COA (cost of attendance) of the school, your student can borrow from Direct Loans and have some of those loans subsidized. Up to $3500 can be subsidized as a freshman. You have to have need to get subsidized loans. Without the need, your student could borrow Direct Loans up to the limit of $5500 as a freshman, but none of it would be subsidized. </p>
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<p>You can apply for a Direct (stafford loan) and receive one. However, you must have a financial need to get a subsidized loan.</p>
<p>If you do not have a financial need, your direct/stafford loan will be unsubsidized</p>
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<p>Why not check the box for institunial aid…just in case? </p>
<p>I agree with GA2012MOM. Most schools, the vast, vast majority of them are need blind for admissions. IF there is a school or some schools on your student’ s list that are top wants that are not, then just don’t apply for need at them. It’s not an all or nothing sort of thing, applying for fin aid. I know folks who have done this. </p>
<p>It is possible to have a FAFSA EFC that is less than the school COA, and yet not qualify for aid at schools that have their own formula or that simply do not meet need most of the time, So one can be eligible for the subsidized part of a Direct Loan and still not be eligible for any fin aid from the school money.</p>
<p>If you can get through the first term without taking loans, you can save a bit on interest rates and the Direct loan can be taken for the whole year even when applied for in the second term. I’ve known people who take that loan and even the PLUS (parent loan) at the tail end of the year, as the deadlines for those are not until June, I believe. However, you do have to be aware of a school’s own deadline in processing those things. You do need someone at the school to get those loans to your account, and if they have their internal rules, it can be an issue. </p>
<p>A local family we know did not apply for fin aid, as they KNEW they would not qualify, but did fill out FAFSA to get the loans, Through some fluke, one school did get the fin aid request, and when asked for the FAFSA, the student sent it to them, and he got an aid package from them. Not a huge one, but still a bit of grant money is always welcome. </p>