When should I apply for Parent Plus Loans vs Sallie Mae for Fall 2024? Need approval timeline
My daughter just got accepted to her dream school starting Fall 2024, but her financial aid package isn't covering everything. We're looking at needing about $14,000 more per year that's not covered. I'm trying to figure out the best timing to apply for either Parent Plus loans or private loans through Sallie Mae just to check if we'd get approved. I don't want to apply too early and have the credit check expire, but also don't want to wait until the last minute and be scrambling. When's the sweet spot time-wise to apply? Also, does anyone know if applying for both just to compare options would hurt my credit score? Our EFC on the FAFSA was higher than expected (around $22k), so I'm not super confident about approval with my credit history.
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Zara Khan
Congrats on your daughter's acceptance! For Parent Plus loans, the credit check is valid for 180 days, so I'd recommend applying around March-April 2024 for Fall semester. This gives you plenty of time before payment deadlines (usually July/August) but ensures your credit check won't expire. For Sallie Mae or other private loans, you can actually apply now for a pre-approval which is just a soft credit check in most cases. The full approval with hard credit check should be done closer to when you need the funds, around May-June. If you're concerned about approval, I'd suggest trying the Parent Plus loan first since the credit requirements are generally less stringent than private lenders. They primarily check for adverse credit history rather than credit scores.
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Sean Murphy
•This is really helpful, thank you! I didn't realize the Parent Plus credit check was valid for that long. Would you recommend I wait until after my daughter completes the 2024-2025 FAFSA to apply for the Parent Plus? I'm confused about whether current FAFSA info carries over or if we need the new one submitted first.
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Luca Ferrari
we applied for parent plus in may last year for fall and got approved in like 2 days. sallie mae took like a week and gave us a higher interest rate so we went with plus. but watch out cuz theres that loan fee with parent plus that adds like 4% to the total smh
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Sean Murphy
•Thanks for sharing your experience! I didn't know about that 4% loan fee - that's definitely something to factor in when comparing. Did you find the Parent Plus application process straightforward?
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Nia Davis
To answer your specific question about timing: The ideal window is 3-4 months before you need the funds. So for Fall 2024, applying in April or May 2024 is perfect. Regarding your credit concerns: Parent PLUS loans only check for adverse credit history (default, bankruptcy, etc. within past 5 years), not your actual score. Sallie Mae and other private lenders evaluate your full credit profile, debt-to-income ratio, and will have stricter requirements. And to clarify: You must complete the 2024-2025 FAFSA before you can apply for a Parent PLUS loan for Fall 2024. The new FAFSA for 2024-2025 opens December 2023. As for multiple applications: Shopping for student loans within a short period (14-45 days depending on the scoring model) typically counts as a single inquiry for credit score purposes.
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Mateo Martinez
•this is such good info! i wish i had known this sooner before i damaged my credit applying for like 5 different loans last year lol
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QuantumQueen
I just went through this whole process with my son last semester and it was a NIGHTMARE trying to reach anyone at Federal Student Aid when we had questions about the PLUS loan!!! We kept getting disconnected or waiting for hours. Finally found this service called Claimyr (claimyr.com) that got us connected to an actual human at FSA in less than 30 minutes when we needed to figure out why our PLUS application was stuck in processing. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ As for timing - we applied for PLUS in June for fall semester and it was cutting it way too close. The whole process took about 3 weeks with all the verification and paperwork. Definitely do it earlier like others suggested!
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Sean Murphy
•Thank you for the Claimyr recommendation! I've been trying to call FSA with questions about how our current FAFSA impacts the PLUS loan application and keep getting disconnected. Will definitely check that out. Appreciate the timing advice too - sounds like April/May is the consensus.
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Aisha Rahman
Be VERY careful with Sallie Mae!!! Their interest rates are PREDATORY and they don't care if you can't pay later. My oldest graduated in 2022 with $67k in Sallie Mae loans and the payments are CRUSHING her. Started at 11.2% interest when federal loans were like 5%!! Parent PLUS has way better repayment options if you run into trouble later. Income-contingent repayment is available if you consolidate PLUS loans after graduation. Sallie Mae will offer NOTHING if you lose your job or have financial hardship!!!
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Zara Khan
•This is an important point about repayment options. Parent PLUS loans qualify for certain federal repayment plans and potential forgiveness programs that private loans never will. While the origination fee is higher (around 4.228% currently), the flexible repayment options and fixed interest rates often make them a better long-term choice than private loans.
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Ethan Wilson
One thing no one's mentioned - you should definitely wait until you've received ALL potential aid before applying for loans. Make sure your daughter has completed the CSS Profile too if her school requires it (many private schools do), as that might unlock additional institutional aid. Also check if her school has an additional supplemental form for their own grants. My daughter got an extra $8k from her school after we completed their institutional form that wasn't part of the initial package.
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Sean Murphy
•Oh wow, I didn't even think about the CSS Profile! Her school is private so that might apply. I'm going to check on that right away. Do you know if there's a deadline for submitting the CSS Profile for Fall 2024? We already submitted the FAFSA but I'm realizing we might have missed some additional forms.
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Ethan Wilson
•CSS Profile deadlines vary by school, but many priority deadlines are in February or March. I'd contact the financial aid office at her school ASAP to ask about CSS and any school-specific forms. Some schools have institutional scholarships with separate applications too. Don't leave any potential free money on the table before taking out loans!
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Luca Ferrari
btw if ur credit isnt great for the parent plus loan u can still get it with a endorser (like a cosigner) just fyi
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Aisha Rahman
And don't forget the FAFSA COMPLETELY CHANGED this year!!!! The new system is calculating Student Aid Index (SAI) instead of EFC and uses different formulas! Your daughter might qualify for more aid under the new system so make sure you're looking at the right aid year when you apply!
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Sean Murphy
•You're right - I've been hearing about the SAI replacing EFC. We're completing the new FAFSA as soon as it opens. Do you know if the change might actually help us? Our main issue was that they counted our home equity in the old calculation even though we don't have much liquid cash.
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Nia Davis
•The new FAFSA and SAI calculation actually eliminates the consideration of home equity entirely, which could potentially help your situation. The new formula also increases the income protection allowance and adjusts how multiple students in college are counted. These changes might result in a lower SAI than your previous EFC, potentially qualifying your daughter for more aid before you need to turn to loans.
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Mateo Martinez
i always heard it was best to max out federal loans before private ones bc of the protections right?
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Zara Khan
•Yes, that's generally the recommended approach. The order of operations should be: 1. Direct Subsidized Loans (student's name) 2. Direct Unsubsidized Loans (student's name) 3. Parent PLUS Loans (parent's name) 4. Private loans (last resort) Federal loans offer income-driven repayment plans, potential loan forgiveness, hardship deferments, and fixed interest rates. Private loans typically have none of these protections.
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