Sending your child off to college is hard enough as it is. At ABC’s Office of Financial Aid and Scholarships, we are here to help guide you through the Financial Aid process and answer any questions you might have. Below are some items that may assist you in completing your part of your dependent student’s aid application. Other items will provide you with general financial aid information to help you better understand eligibility criteria, cost of attendance, aid types available and important dates and timelines to keep in mind throughout the year.
A few things to keep in mind when trying to understand Financial Aid:
Federal Direct Parent Loan for Undergraduate Students (FDPLUS)– The FDPLUS is a federal loan borrowed by the parent on behalf of a dependent student to assist with educational expenses. Students are awarded the maximum amount they are personally eligible to receive, after which PLUS loans are automatically offered to the parents of dependent students to meet the cost of attendance. As with all loans, you are not required to take it. Parents are required to complete a FAFSA application to be eligible for a Direct PLUS Loan, and the parent must complete a Direct PLUS Loan Application and Master Promissory Note (MPN) on the Federal Loan website. The PLUS is a non-need based loan currently at 7.21% interest rate, but rates are subject to change yearly based on variable rate changes. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Payment can be deferred while the student is attending school at least half-time, but interest will continue to accrue.
*Important note about Parent PLUS loan applications: The PLUS loan application will not be available for 2014-2015 until May 2014. If you attempt to apply prior to that date you will be told that ABC does not participate in the program. Rest assured, ABC DOES participate in the Federal Direct Parent PLUS loan program. Applications for parent PLUS loan requires a credit check each time the parent applies for the loan and is only valid for 90 days. Applying too early may cause delays with processing and disbursements. Students can review their file status by logging into CAMS.
If you have been selected for a process called verification we have requested that you submit a Verification Worksheet along with appropriate federal tax documents. Make sure you complete the Verification Worksheet and provide all necessary signatures before you submit it to the financial aid office. Be sure to not leave any line blank and indicate zero whenever applicable. Incomplete forms will cause a delay in processing your aid application.
Parent and student copies of 1040, 1040A and 1040EZ no longer satisfy outstanding verification tax return requirements. Once federal 2013 taxes are filed with the IRS, students have two options to fulfill federal tax return requirements: Students can return to fafsa.gov and update their FAFSA with their federal tax information by choosing IRS Data Retrieval under the student and parent financial sections or request an IRS Tax Return Transcript.