Parents of Student Borrowers

Paying for a college education can seem challenging.

Simplify it for your family—and position your child for success—by understanding the financial aid process and your role within it.

Getting Started

Completing the Free Application for Federal Student Aid (FAFSA) is the first step in applying for financial aid. Prepare for the FAFSA by:

  • Collecting financial information about you and your child—income tax returns, bank statements, and investment records.
  • Deciding whether to sign the form online or mail in a copy—either way, your child may need your signature to complete this form.
  • Knowing the FAFSA deadline—the FAFSA can be filed from Jan 1 through June 30 of the following calendar year, but colleges set their own priority deadlines which applicants should meet or else you risk losing out on some aid.  Additionally, individual states have their own priority deadlines for state-based aid so be aware of these as well.  

Financial Aid Award Letter

After the school receives your complete application, they will send your child a financial aid award letter.

These letters detail your child’s eligibility for different types of financial aid. It is important your child understands what each letter offers.

Award letters also list your estimated family contribution. Sometimes events that impact your finances—like losing a job—take place after a financial aid award is calculated. If something like this happens, contact the school’s financial aid office immediately—your child may be eligible for additional aid.

Parent PLUS Loans  

If you chose to help finance your child’s education, Parent PLUS loans are a good option.

  • Natural or adoptive parents or stepparents (in some cases) can take out Parent PLUS loans for eligible students. Students under legal guardianship are considered "independent" and so legal guardians cannot take out PLUS loans. However, independent students are eligible for additional federal Stafford loans.
  • Eligibility for Parent PLUS loans is not based on financial need, but your credit must be in good standing.
  • These loans can cover any expenses that are not met by the rest of your child’s aid, up to the cost of attendance calculated by the college
  • Direct PLUS loans have a fixed interest rate of 7.9%.
  • Repayment normally begins 60 days after the loan has been disbursed.
  • On request, you may postpone repayment until 6 months after your son or daughter drops below half-time enrollment.

Contact the financial aid office at your child’s school for more information about Parent PLUS loans.