Do I need to pick a college before applying for Parent PLUS loan?

Yes, you need to have a specific college selected when you apply for a Parent PLUS loan because the loan is processed through that school's financial aid office. Each school has a specific code that must be included on the application. The loan amount is also based on the Cost of Attendance minus other financial aid received at that particular school, so it's impossible to process without knowing which institution. Private loans are different - some lenders will let you apply without a specific school, but most will still require the school information for certification purposes.

we had this same issue last yr. ended up picking the most expensive school for the PLUS loan application just to be safe lol. then when my son picked a different college we had to cancel and reapply. total pain but worked out fine

Actually for Parent PLUS loans you have to complete a seperate application for EACH school! The system requires a school code for each application. It's ridiculous but that's how the federal system works. For private loans, most lenders require you to specify the school too, but some don't. You should shop around and check with different lenders for their specific requirements if you're considering private loans.

The entire financial aid system is designed to TRAP families into making rushed decisions!!! This is BY DESIGN. They want you to commit to a school before knowing the real cost. My son lost out on thousands because we had to pick a school before all financial aid details were finalized. The whole system is BROKEN!!!

I've been through this process with three kids now. Here's what you need to know: 1. For Parent PLUS loans: Yes, you must select a specific school. The application includes the school code and the loan amount is tied to that school's cost of attendance. 2. For private loans: Most require a school selection, but some lenders have pre-approval processes that don't require final school selection until disbursement. 3. Timeline: Parent PLUS loans typically process in 3-4 business days if you pass the credit check. Then the school has to certify it, which can take another week. My recommendation: Have your daughter decide by the deadline, then immediately apply for the PLUS loan. There's usually enough time between the May 1 decision deadline and when fall semester payments are due.

I tried calling Federal Student Aid like 8 times last month with this exact question and kept getting disconnected or waiting forever. Finally I used Claimyr (claimyr.com) and got through to an agent in about 15 minutes! They confirmed you definitely need to select the school first for Parent PLUS loans. There's a good video explaining how their service works: https://youtu.be/TbC8dZQWYNQ if you need to call FSA about any of this. Saved me hours of frustration.

wait do we need to do the parent plus loan thing every year??? my kid is a freshman and we just got it all sorted but do we have to go through this again next year??

One thing to consider - if your daughter is still deciding between schools partially based on cost, you might want to look at the private loan options too. Sometimes private loans have better interest rates than Parent PLUS, especially if you have excellent credit. Parent PLUS loans currently have an origination fee of about 4.2% that private loans often don't have. Just make sure to compare the total cost over time, not just the interest rate.

does anyone know if you can use parent plus loan for off campus housing?? my daughters school is crazy expensive and she wants to live off campus next year