When it comes to funding a child’s education, parents often face tough decisions. While federal student loans and scholarships can provide substantial assistance, they may not cover the full cost of attendance. In such cases, parent loans emerge as a valuable tool for bridging the financial gap and helping pay for college. Let’s delve into why parents and sponsors might opt for parent loans and the benefits they offer.

1. Flexibility in Loan Amounts:

Parent loans typically allow parents or sponsors to borrow up to the total cost of attendance, minus any other financial aid received. This flexibility ensures that parents can secure the necessary funds to cover tuition, fees, room and board, and other educational expenses that federal aid may not fully address.

2. Customized Repayment:

From fixed or variable interest rates to various repayment periods, parents or sponsors can choose the terms that best align with their budget and long-term financial goals.

3. Streamlined Application Process:

Compared to federal parent loans, parent loans often have a more straightforward and expedited application process. This can be advantageous for parents who need quick access to funds without navigating the complexities of federal loan programs.

4. Supplementing Insufficient Federal Aid:

In some cases, federal parent loans may not be enough to cover the full cost of a child’s education, especially for families with multiple children in college simultaneously or facing unexpected financial challenges. Parent loans offer a viable solution for filling these gaps and ensuring that children have the resources they need to pursue their academic goals.

5. Protecting the Student’s Credit:

Parent loans are taken out in the parent’s name, sparing the student from assuming additional debt or potentially damaging their credit history. By assuming responsibility for the loan, parents can shield their child from financial burdens while still providing the necessary support for their education.

Parent loans serve as a strategic financial tool for parents looking to support their child’s educational journey comprehensively. With their flexibility and ability to supplement federal aid, these loans offer parents a means to bridge the financial gap and ensure that their children have access to the resources they need to succeed academically. However, it’s essential for parents to carefully consider the terms, interest rates, and repayment obligations associated with parent loans before making any commitments. By weighing the benefits and potential risks, parents can make informed decisions that align with their financial goals and their child’s educational aspirations.

If you think a parent loan is the best fit for you and your student, learn more at nelnetbank.com/parent-loans.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Parent Loans – A Strategic Option for Financing Your Child’s Education appeared first on Nelnet Bank.

FAFSA Question #1 – When should I complete the FAFSA?

You should always file in time to meet your earliest deadline. As a general rule, filing as soon after October 1 as possible is the best way to meet early school or state deadlines, which will vary. You can check all state FAFSA deadlines on the FAFSA site, and check your college’s financial aid website for information on their deadline.

You’ll need income information for you and possibly your parents. Most employers, banks, and financial institutions send the income information needed for tax returns by the end of January, but if your school has an earlier deadline, you and your parents can use the IRS Data Retrieval Tool (DRT) to access information from your last tax return.

FAFSA Question #2 – Do I need to include my parents’ information?

If you are under 24, your parents claimed you on their income tax return in any of past three years, and not in the military or married, you may be considered financially dependent and may need to include your parents’ information. For complete questions to help you figure out your dependency status, studentaid.gov has a page to guide you. If you are a dependent student and your parents are divorced or separated, check the FAFSA directions to determine which parent’s information to include. Please note: students entering graduate school are automatically considered financially independent.

FAFSA Question #3 – What’s the easiest way to complete and file the FAFSA?

Increasing numbers of people now file the FAFSA online at FAFSA.gov. FAFSA.gov offers help features to guide applicants, and electronic submission is faster. The online application is synchronized with the myFAFSA components of the myStudentAid mobile app, so students and parents can start on one application and finish on another. You can begin, complete, and submit a new or renewal FAFSA form for the current academic year or for next year this way. You can check the FAFSA website announcements for special tips to help you avoid having errors in your completed FAFSA.

You can also access the downloadable PDF versions of these forms on FAFSA.gov.

Before you file the FAFSA, both you and your parents, if applicable, must obtain a Federal Student Aid (FSA) ID. The FSA ID provides access to the FAFSA and all federal aid information. Here’s more information on creating and using your FSA ID.

FAFSA Question #4 – Where should I send the FAFSA?

If you are applying to college for the first time, considering a transfer, or moving on to graduate school, you can send the FAFSA to multiple schools. You are not considered for aid until you apply and the program accepts you. Your state grant program may also require the FAFSA and a list of state grant codes. You’ll find helpful information regarding Listing Colleges and/or Career Schools on the FAFSA site.

And if you mean literally “where do I send the FAFSA?” the instructions for where to submit the FAFSA are on the form itself.

FAFSA Question #5 – Should I file a new or renewal FAFSA?

If this is your first FAFSA, you will complete a blank form. After entering your FSA ID, your information will auto-fill if you have filed a FAFSA before, allowing you to update items which have changed.

FAFSA Question #6 – What documents will I need?

FAFSA filers, including students and parents, will need documents such as W2s, income tax documents, bank statements, non-taxable income, investment documents, and other financial information. Depending on when you’re filing the FAFSA, you may be given the option of automatically transferring tax information into the FAFSA form using the IRS DRT. Using this tool can help save you time and effort. Note that you can’t change the information manually if you use the tool; however, you can clear the form if you decide not to use it and start the application over.

FAFSA Question #7 – Where can I get help?

Federal Student Aid (FSA) has comprehensive directions on their website, including help for filing the FAFSA. Your college financial aid office is also a good resource for any remaining questions.

FAFSA Question #8 – What happens next?

If you’re curious about your FAFSA after you file, you can track its status using your FSA ID. For paper FAFSAs, you’ll need to wait 7-10 days from mailing date to start tracking it. You’ll receive a Student Aid Report (SAR) approximately a week after filing your online FAFSA. It will display your FAFSA information and your calculated Student Aid Index (SAI), which was previously called your Expected Family Contribution (EFC). You should review your SAR carefully for errors to make sure you didn’t make a mistake on your FAFSA form, and make corrections to your FAFSA data if needed. You can also add other schools if you wish.

Your information helps calculate the SAI. The SAI takes into consideration income, assets, the number of people in your family and more. FAFSA sends this information to you and your school, and the state grant system. The school uses your SAI as they look at your financial aid eligibility. This does not mean that you will pay what the SAI indicates. It is a general guideline, but the rest of the financial picture is determined when your school notifies you of your financial aid eligibility.

Check your college financial aid website to see if you must submit other forms for scholarships, grants, or institutional aid that they offer and respond to any requests for information they may send. If you have special circumstances or your financial situation has changed since last year, contact your financial aid office directly for guidance. Applying for financial aid might seem intimidating at first, but follow these steps and you should be able to navigate the process with ease.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Need Help Paying for College? We Have Tips for Filing the FAFSA appeared first on Nelnet Bank.

Expected Family Contribution

When completing the FAFSA form, you’ll need to provide certain information. You need to detail your (and likely your parents’) income, assets, family size, and number of family members attending college. The FAFSA form uses all of the information you provide to determine a figure known as the Expected Family Contribution (EFC). Colleges use your EFC to determine the amount and types of financial aid you are eligible to receive.

Cost of Attendance

Each college sets a figure known as the Cost of Attendance. Direct costs such as tuition, fees, books, as well as room and board make up the Cost of Attendance. It also includes other indirect costs such as transportation and other personal expenses. Colleges and universities have varying Costs of Attendance, but your EFC remains the same, regardless of where you go.

Determining Eligibility

Financial aid offices use the formula below to calculate your financial need. Then your school tries to meet your financial need through a variety of financial aid programs.

Cost of Attendance – Expected Family Contribution = Financial Need

The lower your EFC, the greater the likelihood you’ll qualify for need-based financial aid such as grants, work-study, and Direct Subsidized Loans. Remember that your EFC stays the same no matter which school you attend. In addition to any financial contribution you can make to your education, there are other financial aid sources that can be used to help fund your college education such as Direct Unsubsidized Loans, PLUS loans, private loans, and other aid programs not based on financial need. It’s best to exhaust all sources of grants and scholarships before borrowing for college. You can use a free search at Peterson’s to find available scholarship opportunities. You can also visit the U.S. Department of Education’s Federal Student Aid website to learn more about the EFC, FAFSA form, and financial aid programs.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post I Submitted My FAFSA® Form – What Can I Expect to Pay for College? appeared first on Nelnet Bank.

While it may seem early to prepare for next semester, you’ll want to apply in plenty of time to receive any private student loans you need to fill the gap between your award and your costs—and to find and apply for last-minute scholarships, pick up extra summer work, or find a part-time job for fall that may help you borrow less, too. Here are two crucial first steps.

1. Set up a budget and identify how much you need after you subtract your federal financial aid award, scholarships, savings, expected summer earnings, and other sources of income from your expected costs for the next semester.
2. Shop for private student loans in the right amount to help fill the gap between your award and expenses so you know you’ll be able to start attending classes at the start of the semester. You don’t want to over-borrow and pay interest for the next 20 years because you rented a fancy college apartment. On the other hand, if you don’t borrow enough in private student loans and have to work two jobs while taking 14 credits just to stay enrolled and keep your financial aid, your grades may suffer—or you may simply have to take a semester off.

What to Look for in Private Student Loan Options

• Flexible repayment options, such as immediate repayment, interest-only repayment, and deferred repayment
• Low-interest rates mean you may pay less on your loans in the long run
• Cosigner release (e.g., Nelnet Bank offers this to eligible borrowers after 24 months of consecutive, on-time payments)
• Borrower benefits (e.g., discounted interest rates with auto debit)

Applying for Private Student Loans

When you apply for a private student loan with Nelnet Bank, for example, it’s easy to apply online. You can apply individually, or with a cosigner if you have not established good credit. If you apply with a cosigner, they also need to set up an online account and complete an application. Once you’ve applied and we receive all the needed documentation, your application will be reviewed, and if approved, loan funds are disbursed (paid directly) to the school, typically within a matter of weeks. But we recommend getting started early so you don’t have to sweat it!

What If You Need More Help?

If you don’t qualify for enough student loans and you need more help, there are still other options to explore. If you originally applied for the FAFSA, you can go back to your school and ask for more help, or appeal for a professional judgment review in the event your financial circumstances have changed since you filed the FAFSA. More colleges are offering temporary emergency loans to help students over short bumps, so you could ask whether this help is available, too.

You can search for additional late-deadline scholarships, take an extra job over the summer, decide to live at home, take on extra roommates to save money next semester—or even see if you can take a position as a resident assistant to help with housing expenses. If you decide to take the bus, you can sell your car, and get rid of insurance, gas, and maintenance costs, too.

What Are You Waiting For?

Planning ahead identifies problems early so that you have time and more options available to you. You’ll be able to brainstorm solutions with help from others such as your financial aid office, and other advisors in your life, so you can keep your educational dreams alive. The goal is to find yourself, next semester, sitting in class—where you belong.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Finding Student Loans and Preparing for Next Semester appeared first on Nelnet Bank.