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wait so lemme get this straight, the govt shut down your lender for being predatory...but still makes u pay the predatory loan????? wtf kind of system is this??????
It's actually more nuanced than that. When the Department of Education terminates a servicer's contract, they're not necessarily declaring all loans they serviced as predatory. They're often citing contract violations, poor customer service, or mismanagement. The loans themselves are still valid federal obligations, but they get transferred to a different servicer who hopefully will manage them properly. That said, there are specific cases where loan discharge might be available - like the Borrower Defense to Repayment program if your school misled you, or servicer-specific settlement programs like we've seen with Navient.
UPDATE: Thanks everyone for your helpful responses! I've learned so much. I was able to confirm this is indeed a Parent PLUS loan at 7.9% interest that my mom took out for me, which explains the high interest rate. I've applied for an Income-Contingent Repayment plan and am also looking into consolidation options. I was also able to get through to someone at FSA (thanks for the Claimyr tip, it actually worked!) and they explained that several periods of deferment had caused interest capitalization, which is why the interest growth seems so extreme. They're sending me information about the specific borrower protections available in my situation. I feel much better now that I understand what's going on, even though the situation still isn't great. I'll update again once I hear back about the ICR application!
i went through this with my daughter last yr. we did both fafsa applications but it was kinda a waste of time for the summer one bc we found out most schools give way less aid for summer terms anyway. like my daughter got a great aid package for fall/spring but summer was basically all loans no grants. check with each college financial aid office about their summer aid policies b4 stressing too much about this.
One more thing to consider: even if your son gets accepted for Fall 2025 at his top choice, having the 2024-2025 FAFSA completed could still be useful. Some students take summer courses at community colleges before starting their freshman fall semester, and having that FAFSA on file would allow him to potentially get aid for those transfer courses. It gives you more options either way.
so i got that email with the green check and SAI number too but then when i looked at my actual FAFSA the status still says "processing" on the website... anyone else see that discrepancy? should i be worried?
That's actually normal. The FAFSA website sometimes shows "processing" for a while even after the application has been completed and the SAI has been calculated. If you received the email with the green check and SAI number, your FAFSA has been processed successfully and that information has been made available to your selected schools. The website status will eventually update.
Update: I had my daughter check her student portals for her four schools and two of them show they've received her FAFSA (with her SAI number listed) but the other two don't show anything yet about financial aid. Should she email just those two schools?
Yes, I'd recommend having her email the financial aid offices at the two schools that don't show her FAFSA data yet. She should include her full name, student ID number (if she has one), and date of birth in the email, and simply ask them to confirm if they've received her FAFSA data or if there's anything else they need from her. This is very common and most financial aid offices are used to these inquiries.
Quick update on processing times - I'm a financial aid counselor, and we're seeing SAI calculations taking longer for several specific scenarios: 1. Students with divorced/separated parents (extra verification) 2. First-time FAFSA filers (additional security checks) 3. Applications with manual income adjustments 4. Applications submitted during high-volume periods (end of month) If you don't get your SAI within 10 business days, I recommend contacting your school's financial aid office - they often have back-channel access to see what's happening with your application.
Good news - after your SAI appears, the rest of the process moves much faster. Schools typically receive your FAFSA data within 3-5 days after SAI calculation, and most begin preparing aid packages shortly after. If you have scholarships with upcoming deadlines, many will accept screenshots of your SAI from your studentaid.gov account as preliminary documentation.
StellarSurfer
Does anyone know if its possible to change which parent fills out the form after youve already started? My daughter put her dad but really i should be doing it....
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Nia Thompson
•Yes, you can! Have your daughter log in to studentaid.gov, go to the FAFSA form, and there should be an option to change contributors. She'll need to remove her father as a contributor first, then add you instead. This can be done as long as the FAFSA hasn't been submitted yet.
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Diego Mendoza
Just wanted to update - we carefully reviewed who provided more financial support last year and determined it was me (slightly more than 50%). After answering the questions accurately, the system correctly asked for my information. My ex-husband won't need to provide his information even though we're in the same household. Strange new system but at least it's working as designed. Thanks everyone for the helpful explanations!
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Anastasia Romanov
•Glad you got it sorted! Remember that the SAI calculation is different now too, so don't be surprised if the numbers look different from what you might have expected based on previous years.
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