Hi everyone! Thanks for taking the time to read my question. I was wondering if I should still fill out FAFSA. My parent’s combined income that is definitely too high for me to get any aid. They will be paying for my college and expenses. (Of course, I am still trying to apply for scholarships and work a summer job next summer to save them some money.) I seem to remember my mom telling me that the subsidized loans I may get will have a fee greater than if they took loans elsewhere. I will make sure this is true before making my final decision but I just wanted to know if this is true, are there any other benefits for me to fill out FAFSA?
If you file the FAFSA, you will get an unsubsidized loan of $5500. There is a 1% origination fee, so about $55 per year. If your parents take out a PLUS loan, there is a 5% origination fee (I think that’s what it is). If they can find a lower origination fee or interest rate on a private loan, they should take that deal but you (and they) should know there are benefits to the government loans, like consolidation, loan forgiveness on death, forgiveness for certain government work programs.
To make the most informed decision, submit the FAFSA and then compare the terms of the government loans against private loans. Depending on your parent’s income, you may not be eligible for subsidized loans. However, we found that even with unsubsidized loans, the government rate was better than the private loan rate. This may not be the case for everybody, but you will not be able to determine which is better unless you complete the FAFSA.
Also, some schools want you to fill out the FAFSA to be considered for merit aid. Check the individual school policies to determine if this might be applicable to you.
The only loan you can get in YOUR name on,y…no cosigner…is the Direct Loan. To get that, you need to complete the fafsa.
-
If you want to be eligible for a direct loan.
-
If the college or university you apply to requires that all applicants for merit-based aid also file the FAFSA. Yes, some places do require this.
-
If the college or university you apply to states that it will not award any aid in future years, no matter how bad a financial reversal your family might suffer, if you do not apply for aid as a freshman. Yes, some places have this policy.
<<<
the subsidized loans I
[QUOTE=""]
[/QUOTE]
You don’t qualify for aid, so you can only get an Unsubsidized loan.
[QUOTE=""]
[my parents] will be paying for my college and expenses.
[/QUOTE]
my mom telling me that the subsidized loans I may get will have a fee greater than if they took loans elsewhere.
[QUOTE=""]
[/QUOTE]
Why would you be taking any loans AT ALL if your parents will be paying for your college and expense??? what would the loan be for???
Thanks for all of the responses. I think I’ll fill it out when the time comes just in case.