What Is My Role As A Parent?

When it comes to Financial Aid, parents and guardians play a key role in the process. As a student, it’s very easy to be confused when it comes to understanding the FAFSA and other financial aid information – so having a parent’s support to lean on makes all the difference.

On the FAFSA, students will be required to fill out information about themselves and their parents/guardians. Expect to be asked questions regarding your household income, financial information, IRS income tax information as well as questions regarding savings and more – things a student might not know offhand. Without your help, a student might incorrectly fill out the form, and adversely affect their ability to qualify them financial aid.

Loan Responsibility As A Parent

Parents or guardians can be responsible for paying back PLUS loans and any loans they co-sign for students under 18 years of age.

Direct loans are also available for parents.

Q. What are the eligibility requirements for a parent to get a Direct PLUS loan?

• To receive a Direct PLUS loan, you must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
• The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.
• You cannot have an adverse credit history (a credit check will be done to verify this).
• In addition, you and the student must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

Q. How do I pay back a Direct Plus loan?

Direct Plus loans do not have a grace period. This means the repayment period begins 60 days after your student’s school makes the last disbursement of the loan. However, if you're a parent PLUS borrower who is also a student, you can defer repayment while you are enrolled in school at least half time and (for Direct PLUS Loans first disbursed on or after July 1, 2008) for an additional 6 months after you graduate or drop below half-time enrollment.

For more information on how parents and guardians can get Direct Loans, visit the U.S. Department of Education's Direct Loan Program at www.direct.ed.gov.