Parents
Your greatest task is helping your students find the right financing for their college financial needs. Student Aid Lending provides a great source for information on Parent PLUS loans, deferment and forbearance offered by the Department of Education, as well debt repayment and consolidation options.
Your Loan Options
Free Application For Federal Student Aid
The Real Cost of College Attendance
Federal Loan Consolidation Program, Student vs. Parent Consolidation
Loan Forgiveness Programs
Loan Options for Parents
Need more funding?
If you're left with a gap in funding your student's education, you have two loan options:
Parent PLUS
Managed by the Department of Education, Parent PLUS loans are designed to address the gap between the amount of aid your student qualifies for and the total cost of their attendance. PLUS loans are the only credit based loans offered by the Department of Education and are the responsibility of the parent to repay, not the student. The interest rates on PLUS loans are controlled by the Federal Government and are subject to change July 1st each year.
For more information, visit Parent PLUS.
Private
Private loan are also an available option to pay the remainder of your student's education. More commonly, a student will apply directly for a private loan. In cases where a student has a limited or a poor credit history, you may choose to co-sign for a private loan. Rates and repayment terms of private loans will vary and are not overseen by the Department of Education.
An important note: Prior to relying on PLUS and Private loan options, be sure your student has exhausted all their other Federal Aid and scholarship options. PLUS and Private loans carry higher rates than Perkins and Stafford loans available to students and do not offer interest rate subsidies.
For more information visit Private Loans.
Expectations of Parents
FAFSA
Prior to each school term, your student is required to complete their Free Application for Federal Student Aid. This can be done starting at the beginning of January, and are received on a first-come, first-served basis for financial aid rewarded. The information you provide will determine exactly how much and what types of aid the student will be qualified for. Entering incorrect information will change the type and amount of aid awarded, and can result in lost aid.
Helping your student fill out their FAFSA properly is the most important step in the financial aid process. Visit FAFSA to help you prepare. On this page, you can find tips and links to tools to help you in the application process.
Awards Letter
Once your student receives the award letter from the schools they have applied to, review them carefully. Most importantly to parents is the EFC (Expected Family Contribution), if you can't meet this amount, be sure to petition with your school as early as possible. They may be able to revise your students' award amount in cases of need or suggest alternatives.
A common misunderstanding when attending a more costly school is the amount your student is awarded. Federal Aid carries maximum limits based on the type of aid being offered. Due to these limits, your Expected Family Contribution may be higher than a more affordable school.
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