Help, My Parents Won’t Complete the FAFSA | 10.22.09
Are your Mom and Dad not willing to file the FAFSA with you because they don’t want people knowing their earnings? Are they instead willing to co-sign on a private student loan?Â If this is the case the logic behind their actions is illogical.Â In fact, you should direct them toward this blog as I will chronicle why their judgment is severely lacking and will only hurt you in the long run.
- By filing the FAFSA you open yourself up for all types of financial aid which includes scholarships, grants, and work-study programs.
- When you file your FAFSA you become eligible for a federal Stafford loan which is in the students name only.Â Mom and Dad do not need to co-sign for a Stafford loan like they would for a private student loan.
- You enjoy the security of a fixed interest rate
- You have three years worth of deferment time attached to a federal loan opposed to 1-year on average for private loans
- You may be eligible for 100 percent loan forgiveness if you work in certain fields. Private student loans do not offer forgiveness potential.
The one thing I will say about private loans is that interest rates are very low at this time which is one reason some parents prefer the private student loan to the federal, and if this is your logic it makes good sense.Â In fact, after federal aid options are tapped many parents end up subsidizing the rest of their students education with a private loan.Â This too is smart. But the parents who are steadfast on protecting their private information are doing so at the detriment of their child.
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