New here... A few questions...
Date: Thu, 06/18/2009 - 11:15
New here... A few questions...
I've not spoken with any one yet about my situation but it's looking as if I'll need to very soon. My credit card bills are through the roof and the monthly payments are killing me. I've also got two separate parent loans for two of my college kids. My questions are regarding these loans and my ability to get future financing for my kids' education if I go through one of these debt management or debt settlement programs.
1) Are parent plus loans included in debt management/settlement programs?
2) Will using a debt management/settlement program affect my ability to get future parent plus loans for my children?
3) If the answer to the second question is yes, how can my children continue to get financial aid to continue their educations?
Thank you!
1. Plus loans or any student loans for that matter cannot be in
1. Plus loans or any student loans for that matter cannot be included in debt management programs.
2. DMP's and settlement programs will tank your scores. Plus loans are credit based so more than likely you will be denied.
3. If you are denied a Plus loan, your kids then become eligible for additional unsub loans.
http://www.finaid.org/loans/parentloan.phtml
If a dependent student's parents are denied a PLUS loan, or the college financial aid administrator determines that the parents are likely to be denied a PLUS loan, the student becomes eligible for increased unsubsidized Stafford Loan limits. Only one parent needs to apply for and be denied a PLUS loan. However, if one parent is denied a PLUS loan and the other is approved for a PLUS loan, the student is not eligible for increased Stafford Loan limits.
Thanks for the info. I followed the link above and have now lear
Thanks for the info. I followed the link above and have now learned about the Stafford loans but it appears that the stafford loans won't be enough to cover the entire "cost of attendance" for the school my children currently attend. Will my children be offered additional student aid? Also, will my children qualify for the "need based" portion of a student loan if the annual family income is over $100K? I'm quite sure that I will be denied for the Parent Plus loan this year.... does that qualify as "need" for my children despite our annual family income? Any help is greatly appreciated.