Is taking out a Parent PLUS loan our only option? Need advice on FAFSA alternatives

Parent PLUS loans aren't ideal but sometimes necessary. They have higher interest rates (currently 7.54%) than direct student loans and fewer forgiveness options. Few important things to consider: 1. Max out Direct Subsidized/Unsubsidized Loans first ($5,500-$12,500 depending on year and dependency status) 2. Have your son apply for private scholarships - even small ones add up 3. Consider asking the financial aid office for a "professional judgment review" if your income has changed or you have unusual expenses 4. Look into payment plans offered directly by the school The SAI calculation is different from the old EFC - it's normal to see significant changes, especially if your income increased even slightly.

parent plus is what we did. not great but wat else can u do? my kid is junior now and we owe like 45k just from that. the interest is the WORST part tbh. they start charging interest right away not like the subsidized ones. wish someone told me that befor we signed!!!

I've worked in financial aid for over a decade, and I'd recommend exploring a few more options before committing to a Parent PLUS loan: 1. First, appeal your SAI calculation if you have special circumstances (job loss, medical expenses, etc.) 2. Contact smaller private colleges - they often have more institutional aid available than large public universities 3. Consider the community college route for the first two years - dramatically reduces overall costs 4. Look at work-study programs combined with part-time employment 5. Some schools offer income-share agreements as an alternative to traditional loans The 2025-26 FAFSA's new SAI formula has been particularly challenging for many middle-income families in your bracket. The changes to the income protection allowance have affected many families negatively.

We've been using Parent PLUS loans for both our kids for the past 3 years, and honestly regret it. The origination fees are ridiculous (around 4% taken right off the top!) and the interest rates are much higher than what students get. If I could go back, I would have helped my kids find more scholarships or considered a gap year while building up some savings. One option you might look into is a home equity loan if you own your house - rates are usually MUCH better than Parent PLUS. Some families in our situation have also looked into private student loans with a parent co-signer, which sometimes offers better terms, though you lose federal protections.

I was in a similar situation last year trying to reach someone at FSA to discuss our SAI calculation issues. After weeks of trying to get through on the phone (constant busy signals, disconnects after waiting 2+ hours), I found Claimyr.com which got me connected to an actual federal student aid agent in about 20 minutes. They have a system that navigates the phone tree and waits on hold for you. You can see how it works in their video demo: https://youtu.be/TbC8dZQWYNQ The agent was able to explain exactly why our SAI jumped so much (turned out it was related to retirement account withdrawals we made for home repairs being counted as income). This helped us put together a proper professional judgment appeal with our school's financial aid office.

They just explained the calculation in detail - the appeal itself has to go through your school's financial aid office. But having the FSA agent explain exactly what factors caused our SAI to be so high was crucial for putting together an effective appeal. They pointed out specific sections of our FAFSA that were triggering the higher calculation.

parent plus loans are PREDATORY!!! the govt knows parents will do ANYTHING for their kids and they take advantage with those ridiculous interest rates. my sister ows almost $90k now for her daughters education and she'll probably die before its paid off. its criminal what they're doing to families!!!

Have you looked into whether your son qualifies for any supplemental grants? My daughter got a Pell Grant from her FAFSA results but then also qualified for a state grant we didn't know about until we asked. Also, has he checked with his academic department? Sometimes they have scholarship money that isn't advertised in the general financial aid package!

If your son is already committed to this school, and you've maximized scholarships, grants, and direct student loans, you might consider a combination approach to minimize Parent PLUS amounts: 1. Take only what you absolutely need in Parent PLUS loans (partial amount) 2. Use a payment plan through the school for another portion 3. Have your son work part-time during school (10-15 hours/week is manageable) 4. Consider whether you can contribute even a small monthly amount from your current income Many families use Parent PLUS loans as part of their strategy, not the entire solution. Also worth noting that you can deduct up to $2,500 of student loan interest on your taxes, which helps a small bit with the cost.

my cousin got that parent loan and it works ok for them. just dont borrow more than what ur kid will make in thier first year after grauatding. thats wat the financial aid person told us. if they'll make 45k dont borrow more than 45k total

Thanks everyone for all the suggestions! I'm going to: 1) Contact FSA to understand why our SAI jumped so much, 2) Request a professional judgment review based on our medical expenses, 3) Look into payment plans + my son's part-time work to reduce the loan amount, and 4) Have him contact his department about additional scholarships. If we still need Parent PLUS loans, we'll keep the amount as low as possible. This has been incredibly helpful!

I'm new here but dealing with a similar situation! Just wanted to add that some schools have emergency grant funds that aren't widely advertised - it's worth asking the financial aid office directly if they have any institutional emergency aid available for families whose financial situations have changed or who are facing unexpected hardships. Also, if your son is interested in work-study, those positions often pay better than regular part-time jobs and the hours are designed around class schedules. The application process varies by school but it's usually through the financial aid office. Don't give up hope - there are often more options than what's initially presented in the aid package!