A FAFSA is not required for parents who wish to make use of federal funding to pay for their child’s education. Instead, a parent will need to contact school financial aid officials that participate in the Federal Direct Student Loan Program. Under this program, parents can be offered low interest rate loans to fund their child’s tuition, books, and other educational expenses at more than 4000 colleges and universities nationwide. Applications should be made directly with the school.
In order for a parent to qualify for a Direct Plus loan, the must meet certain eligibility criteria. First, the child whose education they wish to fund must be a full biological or legally adopted dependent. The student must attend classes at least half-time. In most cases, a student must be under the age of 24, have no dependents of their own, and not be married.
Parents must be able to demonstrate creditworthiness in order to apply for a Direct Plus Loan. Because of this, parents are strongly encouraged to review their credit reports prior to applying for a loan. Individuals who do not have sufficient credit may still be able to get a Direct Plus loan if they can provide suitable cosigner or guarantor. In cases where a cosigner or guarantor is not possible, a parent may still be able to get a Direct Plus loan if they can prove that their adverse credit rating was as a result of unusual circumstances that have since been resolved.
While parents do not need to fill out a FAFSA in order to apply, they should understand that loan amounts cannot exceed the total educational expenses as would normally be determined by a FAFSA form. Loan amounts are also reduced by the amount of other aid a student receives, such as grants and scholarships.
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