<p>Doing some research for a friend of a friend who is a long time US resident but who's family (father, mother, daughter) have just recently attained green card status in the US. The daughter has been studying at what I consider a predatory for-profit design school for a number of years - as they had no green cards, they were not eligible for "financial aid" and have been paying for this degree in cash, many many thousands of dollars. The credits don't transfer, it's too late to make a different choice, they have tons of money invested and they just want to finish.</p>
<p>The daughter was supposed to graduate this year but apparently has a few more classes to take, and won't be finished until next winter. In the meantime they continue to pay the school thousands each month, but now that they have the green card they are FAFSA eligible.</p>
<p>So, what does this mean to them? I think their income is too high to get any Federal grants, but they can still file for last year as well as this year. Can they get the Stafford loans from 2012/2013 applied to their account retroactively? Or can they just file for next year and pick up one semester of Stafford?</p>
<p>Yes, if they fill out FAFSA right now, I think they have until June 30, to get any loans for the school year ending and if the school is so positioned for summer as well. The daughter can get Staffords, and the parents would be able to borrow PLUS if they qualify. They would then have to fill out the next year’s FAFSA using 2012 info for money for the next year. </p>
<p>This is assuming the school is accredited to the point of being able to rake in the federal money. A parent and the student should apply for a FAFSA PIN right now, and when they get those two numbers, one for parent, one for student, they can start filling out last year’s FAFSA and then next year’s. But unless they are low income enough to qualify for PELL, it’s just loans.</p>
<p>Thanks, that’s what I thought. Loans are better than nothing at this point - they have paid enough that they won’t end up with unending debt for years, which seems to be the typical outcome of the school. I’m assuming the place is eligible for federal money as their financial aid page states filling out FAFSA as the first step. This poor family was very ill advised to begin this process, which has led to bankruptcy and foreclosure in order to pay the unending school bills, so I doubt they will qualify for PLUS (not that I know what the qualifications are). However, I think they still have to come up with some amount in excess of $30,000 by next March in order for her to graduate, so maximizing Staffords will ease the strain.</p>
<p>Carmen, if they have already paid for the past school year, the daughter can still get the Staffords for $6500 AND $4000 more added to that if a parent applies and is denied for PLUS. The PLUS application literally takes minutes online once the PIN is at hand and it is a quick deny or accept, an if it is a deny, the student will be eligible for the extra Stafford. The money would go to the school and then sent to the student if so requested, if the student account is clean. Otherwise it will go directly towards anything on that account first. Then, the money for next year can be applied for the same way, and if the student has senior status, the amount would be $7500 with $5K, I believe, extra with a PLUS denial.</p>
<p>The student Stafford interest rate is about 7% unsubsidized and the PLUS is 8%, if a parent is approved. Only one parent per PIN, and only one parent has to apply for the PLUS so if one parent’s credit history does not have late payments/bankruptcy, that one parent might qualify. Job or income is not part of the approval criteria nor the credit score. Just if there are unpaid balances reported. </p>
<p>In any case, if they get on the ball, for the student alone, there can be over $20K borrowed but it will go through the school first.</p>
<p>Thanks very much, hopefully they will get right on it and get some relief. She will have to drive the process as her parents don’t speak English very well.</p>
<p>The parents have literally been working 80 hour weeks trying to keep up with the college bills, certain that they were giving their only child the “American Dream” education that led them to immigrate here to begin with. I actually knew about this situation after her freshman year and tried to convince them to have her leave that school and go to a local state college instead, but they refused as her credits wouldn’t transfer and she was happy where she was. Sigh.</p>
<p>I’ve known a number of cases like this, and the families were not immigrants.</p>