FAFSA confusion: How to combine Parent PLUS loan with out-of-pocket payments for first-gen student?

Yes, you definitely have options! You don't have to borrow the full amount offered in the Parent PLUS loan. Here's what I recommend: 1. Calculate the minimum amount you KNOW you'll need to borrow for the first semester 2. Only accept that amount for now 3. Pay the remaining balance for the first semester out-of-pocket 4. Before second semester, you can request an additional disbursement up to the remaining eligibility if needed This approach minimizes the interest that accrues. Parent PLUS loans start accruing interest immediately after disbursement, so borrowing only what you absolutely need is smart financial planning. You'll need to contact your financial aid office again and specifically tell them you want to accept a reduced Parent PLUS loan amount. Be very clear about the exact dollar amount you want to borrow.

take the full amount!! we did this with our daughter and just paid extra when we could. its way less hassle than trying to adjust things mid-year. financial aid offices are impossible to reach anyway lol

I had this exact situation with my son who just finished freshman year. First, know that Parent PLUS loans have an origination fee (around 4.2% currently) that gets taken off the top of whatever you borrow. So if you request $10,000, you only get about $9,580 applied to the student account. What worked for us was: 1. We estimated our out-of-pocket contribution for the YEAR (not semester) 2. Subtracted that from the total annual gap 3. Applied for that reduced PLUS loan amount 4. Had the loan divided equally between fall and spring semesters When the bill came each semester, we paid our portion directly to the school. This approach meant we only did the loan process once, but didn't borrow more than needed. The key is to be conservative in your estimate of what you can pay out-of-pocket. You can always pay more later, but reducing a loan after disbursement doesn't save you the origination fee you already paid.

Ugh, the financial aid office at my son's school was the same way! It's like they have a script they follow and can't answer anything outside of it. Took me WEEKS to get anyone competent on the phone.

i think ur overthinking this lol. just take whatever loans they give u and pay what u can when u can. thats what everyone does. college is stupid expensive anyway might as well accept it 🤷‍♀️

Hi there, I'm a financial aid counselor (not at your son's school). One thing I don't see mentioned yet is that you actually have three options: 1. Parent PLUS loan only (borrow the full gap amount) 2. Out-of-pocket payments only (pay the full gap amount) 3. Combination approach (what you're asking about) For the combination approach, your son's school should have a payment plan option that allows you to spread your out-of-pocket portion over 3-5 months each semester. This is DIFFERENT from the loan. For example, if the semester cost is $18,000 and your son received $8,750 in grants/scholarships/direct loans, that leaves a $9,250 gap per semester. You could: - Take a $6,250 Parent PLUS loan per semester - Enroll in a payment plan for the remaining $3,000 (typically paid in 3-4 monthly installments) This combination gives you the best of both worlds - borrowing only what you need while having manageable monthly payments for the out-of-pocket portion.

When my daughter started college last year, I found myself in a similar situation - wanting to combine Parent PLUS loans with out-of-pocket payments. Here's what I learned the hard way: 1. Financial aid and student accounts/billing are TWO SEPARATE OFFICES at most schools. If you're asking about payment plans and billing, you need the Bursar's Office or Student Accounts, not Financial Aid. 2. The Parent PLUS loan process is frustrating because you have to specify an amount, but the exact bill isn't always clear when you're applying. 3. If you ever need to INCREASE your Parent PLUS loan mid-year (which we did), there's additional paperwork and another credit check. If I could do it all over again, I would have borrowed slightly MORE than I thought I needed for fall semester, then adjusted downward for spring once I had a better handle on our finances.

One more tip from my experience: the Parent PLUS loan application asks for the loan period (academic year) and loan amount. If you indicate a full academic year loan period but later decide you don't need the spring semester portion, you can cancel that disbursement without penalty before it's processed. This gives you flexibility - if your financial situation improves dramatically, you can cancel the spring portion. If not, it's already approved and ready to disburse. Also, keep in mind that Parent PLUS loans require a new application each academic year, so you'll go through this process again next year for your son's sophomore year.