Student loan default

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Student loan default

Postby donnaloub » Wed May 08, 2013 7:26 am

I have outstanding student loans I could not andhave not been able to pay on. My daughter will be going to coillege next year and I need to make out a Fafsa for her. Are we going to be able to get financial aid/student loans/ parent plus loans for her , or will they tell me she is not eligible because I have unpaid upon outstanding student loans. Is my stuff going to hurt us from getting aid for her? Thank you.
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Re: Student loan default

Postby Aid Whiz » Thu May 16, 2013 11:40 am

If you have current student loans that are in default when you apply for the PLUS, you will most likely be denied this type of loan again. The credit check does look for any unpaid debts, and this would count against you.

For more information on PLUS loans and credit, see: http://www.parentplusloan.com/credit-report/ or call the Department of Education at 800-433-3243.
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Re: Student loan default

Postby iGrad-FinLit » Fri Jun 14, 2013 10:29 am

The delinquent status on your loan will not prevent her from getting her own loans/financial aid, in fact the school will typically award her an additional $4000-5000 Unsubsidized Stafford if you are denied for the PLUS loan (see chart on this page with reference to PLUS loan denial: http://www.finaid.org/loans/studentloan.phtml).
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