Hello! I’m a parent new to the whole financial aid game. My daughter is a senior, and we will start her CSS Profile when it opens October 1, needing to complete it by November 1 for Early Decision, and then we’ll start the FAFSA when it opens Dec 1.
My husband and I have our credit frozen, due to being hit by various hacks online. I am confused by something: do I need to unfreeze our credit to initiate the CSS Profile and/or FAFSA process? When I try to google this question, articles mention needing to unfreeze credit in order to receive certain federal loans. I am unclear how the series of steps works, though. Do we not need to unfreeze anything until AFTER we hear back from the school (if she was accepted) with a financial aid package–i.e., does the process of applying for federal loans start at that time? Or do I need to unfreeze everything before initiating the CSS and FAFSA process? My lord, this is confusing!
Thanks for your quick response! Could I ask for clarification on something basic I’m not grasping? Am I right in understanding the sequence of events is as follows? 1.) We submit the FAFSA and CCS. 2.) We get a financial aid package. 3.) Based on that financial aid package, we apply for loans if needed? That is, does the financial aid package they send just tell us we would hypothetically need to apply for such loans, but no loan process has been initiated at that point that would require a credit check?
No, you do not need to unfreeze your credit to get financial aid. No credit requirements for a federal subsidized or unsubsidized loan. Should you - the parent - choose to borrow a parent loan (federal PLUS or private), you will need to unfreeze your credit just for the application process. You can lift it, apply online, get a decision, then put the freeze back on. No need to do that until the moment … later! … that you decide to borrow.
Only you can decide if you need to borrow to pay for school. The financial aid package will tell you how much direct (billable ) costs are, as well as provide an estimate of what the student’s indirect costs might be. You will need to decide whether you need to borrow to cover the costs that financial aid doesn’t cover. If your child will need to borrow some or all of the offered federal loans, a credit check won’t be required … but the student will not receive loans unless they accept them and complete certain requirements first (including entrance counseling and completing a Master Promissory Note).
If the parent needs to borrow, they can borrow up to the school’s Cost of Attendance less all offered student aid. You will need to determine whether you want federal Parent Plus loans or private loans (or possibly a home equity or other type of loan). If you choose a federal Parent Plus loan, you can contact the chosen school for assistance with applying for this.
You’re the best, thanks so much for this! This all confirms what I was intuitively thinking was the case, but explanations I’ve found in books and online are all unnecessarily convoluted. I sent an email to the school’s aid office, but your explanation is hugely helpful to understand everything in layman’s terms. Thank you!