<p>This is our first time tackling the joy of paying for college and we have a couple of questions concerning the best method and the time line. Here is the situation: We have filed our FAFSA and our EFC is $15K. Subtracting scholarships and grants from our daughters accepted college(s) COA(s)...we anticipate needing to pay about that amount each year. We would rather not liquidate assets to write a check for $15K, or take out a second mortgage (I know there are some tax advantages). We also expect our daughter to invest in her own education by taking out a Stafford loan (we will pay the interest during college & maybe the loan AFTER graduation). </p>
<p>The question is what is first? First you choose a college and enroll? Does my daughter apply for a Stafford loan now or does she wait until 90 days before school starts? Do we apply for a Parent PLUS loan before or after my daughter applies for a Stafford? Any suggestions would be welcome.</p>
<p>Stafford loans have to be certified through the school so she can’t really apply until she has chosen a school. The Stafford is paid to the school. Also some schools have direct loans so that is all done through the school. </p>
<p>I don’t know about PLUS loans as we have not taken one.</p>
<p>^^^
Wow. That was quick. OK. So first we wait for the school to tell us she is eligible for a Stafford loan, or to determine if they are going to make a “direct loan”? Of course we can’t do the preceding until after the FA offers have been received and she commits to a school. In other words…take a deep breath and have some patience?</p>
<p>Exactly! There will be plenty of time to get everything wrapped up. Your offers will come, and your child will decide on a school. At that point, the student accepts Stafford loans & completes whatever requirements are necessary. Because schools are supposed to move to Direct Lending for 2010-11, it will very likely be a smooth process: accept loan, do online loan counseling, do online MPN … assuming it’s a DL school (if not, they will advise how to proceed). As for PLUS, that is also supposed to move to DL this year. Schools have the option of doing it all online this year … which is easier for the parents … but it’s possible they still may require some paper applications to tie in. Again, the school will advise.</p>
<p>It’s important for the student to keep looking on her online portal/school email, as many schools only communicate electronically now.</p>
<p>If the school is not DL for 2010-11, they WILL tell you what to do. If you are unclear after receiving the award notification, though, first look at the school’s financial aid website … most try really hard to put all necessary info online. If you are still unclear, call them.</p>
<p>^^^
Thanks for the details. We’ll continue to check the portals and as long as I’m not short on time then I can relax for a couple of more months. I was just concerned that I should be doing something RIGHT NOW to get ready financially (other than buying lottery tickets). Thanks everyone for the help and advice!</p>