FAFSA SAI calculation disaster - does anybody qualify for undue hardship?
So my FAFSA SAI calculation came back WAY higher than expected and my financial aid package is a joke. I'm seriously struggling and might need to consider bankruptcy down the road if I take these massive loans. Has anyone successfully qualified for the "undue hardship" provision to discharge their federal student loans? My family had a medical emergency that drained our savings, but my FAFSA still shows we can contribute $32,000/yr (completely impossible). My school's financial aid office says I don't qualify for enough grants, just massive Parent PLUS loans that my parents can't possibly repay. Does anyone know how the undue hardship process actually works with FAFSA loans? What kind of documentation did you need?
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Ethan Brown
Wait, you're getting ahead of yourself here. First, you need to file an appeal with your school's financial aid office based on that medical emergency. That's called a Professional Judgment review, and it's WAY easier than trying to discharge loans through bankruptcy later. The financial aid officers can adjust your SAI if you have documentation of the medical costs. Did you try that first?
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GalacticGladiator
•I tried talking to them but they just kept saying the SAI is calculated based on the FAFSA formula and they can't change it? I didn't know about the Professional Judgment thing. What kind of documentation would I need?
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Yuki Yamamoto
my sister had to do this las year!! u need ALL ur medical bills, proof of payments, insurance statements, and a letter explaning everything. make sure u use the official terms like "special circumstances" and "professional judgement" when u talk to them or they just give u the runaround!!
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GalacticGladiator
•Thank you!!! I'll gather all that documentation and use those exact terms. Did your sister's SAI actually get adjusted?
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Yuki Yamamoto
•yep!! they lowered it by like $18000 and she got wayyy more grants. but it took like 3 weeks to process so start ASAP!!
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Carmen Ruiz
I work in financial aid, and I can tell you that discharging student loans through bankruptcy's "undue hardship" provision is extremely difficult - less than 0.1% of cases succeed. The courts use something called the Brunner test in most states, requiring you to prove: 1. You cannot maintain a minimal standard of living while repaying the loans 2. Your financial situation is likely to persist for most of the repayment period 3. You've made good-faith efforts to repay the loans Before thinking about bankruptcy, definitely pursue the Professional Judgment review first. Also look into income-driven repayment plans after graduation - they cap payments at a percentage of your discretionary income and can be as low as $0 if your income is low enough.
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GalacticGladiator
•Thank you for explaining this. I had no idea the success rate was that low. I'm definitely going to focus on the Professional Judgment appeal first. If that doesn't work, are there any other options before taking out massive loans?
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Carmen Ruiz
•Yes, there are several other avenues: 1. Appeal directly to the school for institutional scholarships/grants 2. Look for private scholarships (fastweb.com, scholarships.com) 3. Consider a less expensive school initially (community college transfer path) 4. Explore work-study opportunities on your FAFSA 5. If you're close to independent student status, see if you qualify for a dependency override Remember that Parent PLUS loans require credit approval - if your parents are denied due to adverse credit history, you may qualify for additional unsubsidized loans in your name.
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Andre Lefebvre
The whole FAFSA system is RIGGED against middle class families!!! My brother had $70k in student loans and tried the "undue hardship" thing after he got sick and couldn't work. The judge basically laughed him out of court even though he was on disability. These loans are PREDATORY and the government won't let you escape them!!
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Zoe Dimitriou
•While I understand your frustration, this isn't entirely accurate. The system isn't perfect, but there are legitimate discharge options for certain situations (total disability, closed school, public service). The undue hardship standard is very strict by design - otherwise everyone would just file bankruptcy right after graduation. The real issue is college costs rising faster than inflation and financial aid not keeping pace.
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Andre Lefebvre
•Oh please. My brother IS totally disabled and they STILL fought his discharge application for 2 years!! The whole system is designed to trap people in debt forever. The only reason tuition is so high is BECAUSE of these unlimited loans!
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QuantumQuest
Just wanted to share that if you're having trouble reaching someone at the Federal Student Aid office to discuss your options (like Professional Judgment appeals or understanding SAI adjustments), I used this service called Claimyr that got me through to a live agent in about 10 minutes instead of waiting on hold for hours. You can see how it works at https://youtu.be/TbC8dZQWYNQ and their website is claimyr.com. Totally worth it when I was struggling with my FAFSA verification issues.
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GalacticGladiator
•Thanks for the tip! I've been calling the Federal Student Aid number for days and just keep getting disconnected. I'll check out that service.
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Jamal Anderson
•is it free? i dont have money to pay just to talk to someone who should be available anyway lol
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QuantumQuest
•Not free, but pretty reasonable considering I spent literally hours trying to get through before. Saved me taking time off work to sit on hold all day.
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Mei Zhang
I went through something similar with my FAFSA calculation last year. My dad lost his job mid-year but our FAFSA still showed income from when he was employed. Here's what worked for me: 1. I gathered ALL documentation showing the change in circumstances 2. I scheduled an in-person meeting with a financial aid counselor (don't just call) 3. I prepared a detailed letter explaining our situation 4. I brought my parents with me to the meeting 5. I followed up weekly until a decision was made They eventually adjusted my SAI by about $15,000 and I qualified for a Pell Grant plus more subsidized loans. The key was persistence and documentation. Don't give up after the first "no"!
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GalacticGladiator
•This is incredibly helpful! Did you use any specific terminology that seemed to help them understand your situation better? And did you have to provide tax returns too?
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Mei Zhang
•Yes, absolutely! I specifically used these phrases: - "Request for Professional Judgment review" - "Special circumstances adjustment" - "Significant change in financial situation" And yes, I had to provide complete tax returns plus my dad's final paycheck, termination letter, and unemployment benefit statements. I also brought medical bills to show our increased expenses. The more documentation, the better!
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Ethan Brown
One more thing to consider - the CSS Profile schools (mostly private colleges) often have more flexibility with institutional aid than FAFSA-only schools. If you're applying to any schools that use the CSS Profile, they typically have more funding and more discretion to adjust your aid package. Have you considered any of those schools as alternatives?
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GalacticGladiator
•I actually did apply to two CSS Profile schools but was intimidated by their higher sticker prices. Maybe I should reconsider them if they might offer better aid? One gave me a decent scholarship but I was still focusing on the total cost rather than the net cost.
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Ethan Brown
•Absolutely reconsider! CSS Profile schools often have much more generous need-based aid packages. Their sticker prices are higher, but many students pay far less than at public universities after aid is applied. Contact their financial aid offices directly with your special circumstances - they have more flexibility with their institutional funds than public schools who are often limited by state funding formulas.
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Jamal Anderson
idk about the bankruptcy thing but my cousin got her loans forgiven when her college closed down so maybe look into fraud discharge options too????
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Zoe Dimitriou
•That's a completely different situation - closed school discharge is automatic and doesn't require proving undue hardship through bankruptcy. Other discharge options include Public Service Loan Forgiveness (after 10 years of qualifying payments while working for government/nonprofit), Total and Permanent Disability discharge, and Borrower Defense to Repayment (for school misconduct). None of these appear to apply to OP's situation currently.
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GalacticGladiator
Thank you all SO MUCH for the advice! I'm going to focus on the Professional Judgment appeal first and gather all my documentation. I've made an appointment with the financial aid office for next week and will bring my parents and all our medical bills. I'm also going to reconsider those CSS Profile schools that might offer better aid packages. Hopefully I can get this resolved before having to take out massive loans - bankruptcy definitely sounds like a last resort option that rarely works for student loans.
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Carmen Ruiz
•Excellent plan! One last tip - if your first financial aid counselor isn't helpful, politely ask to speak with the director or a senior counselor. Sometimes the front-line staff have less authority to make adjustments. Good luck with your appeal, and keep us posted on how it goes!
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GalacticGladiator
•Will do! I'll update this thread after my meeting next week. I'm feeling much more hopeful now that I have a concrete plan and the right terminology to use.
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