Covering $21k gap after FAFSA loans - Parent PLUS vs personal loans?

Parent PLUS loans are designed specifically for this gap. You apply directly through studentaid.gov (not through private banks), and yes, you need to apply each academic year. You can borrow up to the total cost of attendance minus any other financial aid your daughter receives.\n\nThe current interest rate for Parent PLUS is 8.05% plus a ~4% origination fee, so it's not the cheapest option, but it does come with federal protections like income-contingent repayment options if you consolidate.\n\nPersonal loans from banks typically have higher interest rates and fewer protections than federal loans, so I'd recommend exhausting the PLUS loan option first.

This ^\nPlus the parent Plus loan can be defered until after graduation if needed.

Thank you for explaining this! I had no idea the interest rate was so high on PLUS loans though - 8.05% plus fees?! That seems predatory. And does that mean I'd be taking on nearly $85k in debt by the time she graduates (assuming costs stay the same)? I'm already 52 and trying to save for retirement...

have u talked to the schools financial aid office yet?? they might have extra scholarships that they didnt tell u about. my daughters school found an extra $5k for us when we told them we couldnt afford the gap

We tried, but they just said

I went through this EXACT situation with my son. That $21k gap is a killer! The truth is, nearly everyone takes out Parent PLUS loans for this. And yes, you have to reapply each year with a new credit check, which is super annoying. The financial aid system is completely broken - they expect middle class families to magically come up with tens of thousands each year!\n\nWe considered private loans through SoFi and Earnest, but the rates weren't any better than PLUS loans for us, and they had fewer protections. My advice is to accept you'll need the PLUS loan but try to get your daughter to take on more of the burden after graduation if possible.

It's so frustrating that the system puts us in this position. I honestly had no idea we'd face this kind of gap. Did you find any creative solutions besides loans? I'm wondering if my daughter should transfer to a cheaper school, but she's finally found her footing academically and I hate to disrupt that.

One option nobody mentioned is a 529 college savings plan loan. Some states allow you to borrow against your 529 plan even if you just opened one. The rates are usually better than PLUS loans (around 5-6% right now). Worth checking if your state offers this.\n\nAlso consider having your daughter look for part-time work on campus - many schools have jobs that pay $3-5k per semester and work around class schedules.

I hadn't even considered a 529 loan option. I'll definitely look into that. She already has a part-time job, but it only brings in about $150/week. Maybe she can find something that pays better on campus.

I've been in your exact shoes! The FAFSA system is rigged against middle-income families. I struggled to get through to anyone at Federal Student Aid when trying to figure out my options, kept getting disconnected after waiting on hold forever.\n\nI finally used a service called Claimyr (claimyr.com) to get through to a real person at FSA who walked me through all the Parent PLUS loan options and helped me understand if I should file an appeal for more aid. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ\n\nAfter talking to FSA, I learned I could request a professional judgment review if our financial situation had changed since the tax year they used for the FAFSA. This got us an additional $4k in grants.

these phone waits are insane, i waited 2.5 hours last time and they hung up!!

I'll check out that service - I've tried calling FSA three times and never got through. I didn't know about the professional judgment review either. Our income hasn't changed significantly, but I do have some medical expenses that weren't accounted for.

hot take: not worth going into debt for college these days unless its a top 20 school or STEM degree. what is your daughter studying?

She's majoring in Environmental Science with a minor in Data Analytics. It's a well-regarded state university with good connections in that field, not Ivy League but definitely respected. I do believe her degree will have good job prospects, which is why I'm willing to consider the loans.

ok thats actually not bad! STEM + data skills should pay off. still sucks u have to take on so much debt tho

Look into tuition payment plans too! Most schools let you spread payments over 10-12 months instead of paying each semester. We put about $5k per year on the payment plan and its waaaaay more manageable than taking extra loans.

That's a good idea. I think her school offers a payment plan with a $75 enrollment fee. Spreading out even part of the cost would help. I'll look into combining that with loans for the remainder.

One more thing - make ABSOLUTELY SURE your daughter is taking advantage of every scholarship opportunity. My son found about $3000 in departmental scholarships that weren't part of the main financial aid package. Also have her check with her academic department - they often have funds that aren't widely advertised.

Thank you - we'll definitely do this! She hasn't declared her major officially yet (still a sophomore) but plans to next semester. Maybe once she's officially in the Environmental Science department, she'll have access to more departmental scholarships.

As someone who's been through this exact situation, I feel your pain! The $21k gap is unfortunately very common these days. Here's what I wish someone had told me when I was in your shoes: 1. **Start with Parent PLUS loans** - Despite the high interest rate (8.05% + fees), they're still usually your best bet because of the federal protections. You can defer payments until after graduation, and there are income-driven repayment options if you consolidate later. 2. **Apply for a professional judgment review** - Since you mentioned medical expenses that weren't accounted for, this could potentially get you more grant money. The financial aid office has to consider special circumstances. 3. **Consider a hybrid approach** - Don't feel like you have to choose between PLUS loans OR other options. You could do a combination: maybe $15k in PLUS loans, $3k on a payment plan, and have your daughter earn $3k through work-study or summer jobs. 4. **Look into employer tuition assistance** - Some employers offer education benefits for employees' children. Worth checking if your company has anything like this. The system is definitely broken, but Environmental Science + Data Analytics is a solid choice that should lead to good job prospects. You're making the right call by investing in her education, even though the financial burden is overwhelming right now.

I'm in almost the exact same situation with my son! We had a $19k gap last year and ended up doing Parent PLUS loans. A few things I learned that might help: 1. **Don't panic about the 8.05% rate** - while it sounds high, it's actually competitive with most private parent loans right now, and you get way better protections. Private loans I looked at were 7-12% with much stricter terms. 2. **The annual reapplication isn't as bad as it sounds** - it's literally just filling out a new application each year. Takes maybe 10 minutes online. The credit check is soft initially, only becomes hard if you're approved. 3. **Look into income-driven repayment after consolidation** - this was a game changer for us. We consolidated all the PLUS loans after my son graduated and got on an income-contingent plan that cut our monthly payments in half. One thing I wish I'd known earlier: you can actually pay down the principal while your kid is in school if you have extra money. We started throwing an extra $100/month at the loans during his junior year and it made a noticeable difference in the total interest. The system is absolutely broken, but you're not alone in this struggle. Environmental Science + Data Analytics sounds like a smart investment that should pay off long-term!