I [the student] have already filled out the FAFSA and sent it to the colleges to which I’m applying for the Fall 2017 term. If we decided that it was necessary to ask for a parent PLUS loan, when would my parent have to file for it? As soon as possible or when I receive my college decisions(and consequently their financial aid packages) in May?
Logic tells me to wait until May to have a better idea of how much to ask for, therefore eliminating the risk of over-borrowing. I’m just afraid that by then it will be “too late” to ask for a parent PLUS loan.
I would think you wait for May when you have an idea whether you are getting any scholarships. The info on Parent Plus was included with the aid package we received in April or so. That being said he chose the school that gave him the most scholarships and he and I are not borrowing money. I belong to a parent group on Face book that is for the university my oldest son attends. Last year there were parents getting recommendations for private loans a couple of weeks before school started in August.
Ordinarily you can wait until just before the first payment to the bursar is due – just give it enough time so that the loan will show up in their records. They don’t have to have received the disbursement to reduced your bill; they just need to be able to verify that you have been granted the loan. If you have good credit, then no problem.
However, if there are any dings on your credit, you might want to seek pre-approval - this can be done long before you ever apply for a loan and without committing to a specific amount. You don’t want to wait until the last minute only to find out you can’t qualify.
A ~$30k income wouldn’t generate a $9k EFC unless your mom and stepdad have a lot of assets. Are colleges considering you a permanent resident or are they charging you OOS rates because you started as an international student?
How much can your parents pay per year without borrowing? Families with incomes of $30k shouldn’t be taking PLUS loans. You’re a chemical engineering major about to graduate from a FL cc, right? With a 31 ACT and decent cc GPA you should be able to find something affordable in FL. Are there any colleges within commuting distance?
I will re-emphasize the above: A family with income less than 30,000 should not, not, not use PLUS to pay for college.
Yes, the government will give these loans to you, because the program Is not based on ability to repay. If your parents cannot repay the PLUS loan, they are not dischargeable in bankruptcy and the government can even take the money out of social security or other government benefits checks. PLUS could ruin their financial security for life.
Focus on schools that you can afford. If you cannot afford any of the schools that accepted you, focus on financial aid appeals or on switching to starting at a community college to save money.
@austinmshauri
Thank you for the thorough advice. As recent immigrants, a lot has changed in that year as we found new employment and got our documentation in order[including permanent residency]. Our total income hasn’t gone too much above 30k, though.
It’s been a long story with colleges, but the short of it is: I’m in my second semester at a CC and have submitted applications at a handful of need-blind/meet full need colleges across the country. Some are quite selective so I’m not expecting too much but if I do manage to get into at least one of them, that’d be the ideal scenario.
I’ve saved about 7k from my jobs and still have the majority of my excess federal financial aid. (All of my friends used theirs to buy cars/games/etc… I knew I’d be using it for a future college so it’s safe in a savings account hahah)
Again, thank you for the advice. We’ll see what the financial aid package looks like in May, but I’ll presume you’re right, and won’t have to request any plus loans!