Financial Aid FAQ's : What Parents Need to Know

Navigating the Financial Aid (FA) process for your child's education can feel overwhelming, but having the right information makes all the difference. Whether you're wondering about FAFSA deadlines, eligibility requirements, or how to maximize aid opportunities, this Financial Aid Parent FAQ put together by University of Advancing Technology's (UAT) Director of Financial Aid John Okel, is here to help.

Start your FAFSA today! UAT School Code 017188

Why do I need to fill out the FAFSA if my student lives on their own?
1. Students up to the age of 25 are considered a “dependent” student and are required to provide parental data for the qualifications of their financial aid
Why should I fill out the Parent Plus Loan when I know I will be denied, or I can’t afford to pay for it?
1. If accepted: they are not required to but are given the opportunity to cover your remaining personal contribution using the PLUS Loan.
2. If denied: we may be able to raise your Federal Unsubsidized Loans per semester.
What are the eligibility requirements for a Parent Plus Loan?
1. Must be the biological or adoptive parent of a dependent student enrolled at least half-time.
2. Must be a U.S citizen or eligible non-citizen.
3. Meet general eligibility requirements for federal student aid.
4. Have a good credit history.
What are the disadvantages of a Parent Plus Student Loan?
1. Discharge: Federal parent PLUS loans are rarely discharged for financial difficulties resulting from unemployment, age-related or other illnesses and injuries, or bankruptcy.
2. Nontransferable: Parents cannot transfer the PLUS loan to their student to repay after they finish school. Parents and their students may be able to work together to refinance the loan in the student's name through a private lender, although doing so will result in the loss of federal repayment options.
3. Timing: Many parents face high education debt burdens at a time of life when earning power generally decreases and limited income is needed for living or medical expenses. Defaulting on a parent PLUS loan can lead to the garnishment of Social Security benefits, tax refunds and wages.
Why should I consider a Parent Plus Loan?
1. Parent PLUS loans can be a good alternative to private student loans because they offer more flexible repayment options. But Parent PLUS loans can be costlier than other options, and consequences are harsh for default, including the potential for wage and Social Security garnishment.
Who claims the interest on a Parent Plus Loan?
1. We are not tax professionals, and we advise you speak with your tax professional.
Can I get my name off the Parent Plus loan?
1. If approved, the student can pay off the Parent PLUS loan with their new loan and begin making payments on the new loan. Transferring a Parent PLUS loan to a student involves refinancing through a private lender. The student must apply for a new loan to pay off the Parent PLUS loan.