Can my son get FAFSA student loans without a parent cosigner during my home buying process?

federal loans from fafsa dont need a cosignr, thats the good thing about them. private loans usually do tho

The previous commenter is correct - Direct Subsidized and Unsubsidized federal student loans through FAFSA do NOT require a parent cosigner, which is great news for your home buying plans. For a first-year dependent undergraduate student, the maximum federal loan amount is $5,500 ($3,500 subsidized + $2,000 unsubsidized). This increases slightly in subsequent years. The key things to understand: 1. Your income information is still needed on the FAFSA to determine his eligibility and SAI score 2. You won't be legally responsible for these federal loans 3. These loans appear in YOUR SON'S name only, not yours 4. They won't appear on your credit report or affect your DTI ratio However, $5,500 likely won't cover his full need if tuition is $22K. For the gap, he can consider scholarships, work-study (if awarded), or private loans (which typically require cosigners).

I went through this EXACT situation when buying my house last year! Yes, Parent PLUS loans WILL absolutely affect your debt-to-income ratio for mortgage purposes because they're in YOUR name. My lender counted my monthly Parent PLUS payment against me even though my daughter was making the payments after graduation. My mortgage broker advised waiting until AFTER closing to apply for any Parent PLUS loans. Once you have the house, then you can consider taking those loans for next semester or year if needed. That's the approach we took - my daughter maxed her federal loans first semester, we used savings, and then applied for Parent PLUS after our closing.

I've been through this!!! Trust me, DONT sign ANYTHING until after closing. Even if you explain to the mortgage company that your son will pay it, they still count it against your DTI. My sons loans messed up my whole house deal and we had to wait another 6 months to try again!

If your worried about not getting enough federal loan $$ make sure your son completes his FAFSA right away when it opens for the 2025-2026 year on December 1, 2024. Some aid is first-come first-served and I learned this the hard way lol. Also make sure you submit all verification docs ASAP if they get selected for verification.

One thing to consider: while the federal Direct loans don't require a cosigner, they have annual limits as the first responder noted. If your son needs additional funding beyond the $5,500 federal limit, you might want to check if his school offers an institutional payment plan. Many colleges let you spread payments over 10-12 months instead of paying each semester in full. This wouldn't require credit checks or affect your mortgage process. Also, has your son applied for scholarships? There are still many with spring deadlines for fall 2025 enrollment. Even smaller $1,000-$2,000 scholarships can help fill the gap without affecting your home buying process. If you're having trouble reaching the Federal Student Aid office to discuss options (their wait times are legendary), I recently used a service called Claimyr (claimyr.com) that got me through to a live agent in under 15 minutes when I needed to resolve a verification issue. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. Saved me hours of hold time when I desperately needed answers about my daughter's aid package.

BE CAREFUL!!!! Even with the federal direct loans that don't need a cosigner, if your son drops out or doesn't complete enough credits, YOU might still be on the hook as the parent!!! My nephew didn't finish his second semester and somehow my sister got stuck with some of the bill even though she swears she didn't cosign anything!!! The financial aid system is RIGGED against parents!!

also tell ur son to check with his financial aid office cuz sometimes they have emergency grants or work study that can help with the gap between his loans and the tuition

Here's what I learned from my experience: make sure your mortgage is COMPLETELY CLOSED before you sign anything for your son's education. Not just approved - CLOSED. My lender did a final credit check 3 days before closing and found a Parent PLUS loan inquiry (not even an actual loan yet!) and it caused major problems. Had to get letters explaining it was just an inquiry and wasn't going to be processed until after closing.

One last thing to keep in mind - when your son completes his financial aid package at his chosen school, they'll likely present the Parent PLUS loan as an option to cover the full remaining cost of attendance. This often appears in the financial aid award letter as if it's already approved or part of the package. Just remember that you do NOT have to accept the Parent PLUS portion until you're ready, and your son can still accept just his direct federal loans in the meantime. Many parents don't realize they can accept only part of the financial aid package presented in the award letter.