Non-Custodial Parent Contribution Penalization

cptofthehouse
Sat, 06 Apr 2013 13:11:48 +0000

First of all, let’s get a good understanding as to what PLUS is. PLUS is a program from which a parent can apply for loans if there is a child in college. No guarantee that the parent will get the loans, by the way. So a school cannot AWARD PLUS, and they really have no business putting it into the financial aid package. A parent can apply for a PLUS loan and if approved (there has to be no 90 outstanding late notes in the credit report) s/he can borrow up to the full COA of the attending school minus any other financial aid awards and scholarships. Any parent who meets the credit requirements can do this. No need is necessary. Someone who makes a million dollars can borrow the whole amount of his kid’s college cost less any scholarships or other federally backed loans already taken out for it.

For Case, I would think that your mother had to complete a NCP form for PROFILE as they do require that, or you got a NCP waiver for her. If she did file as a NCP through PROFILE, her contribution is not going to hurt you one bit for next year’s aid. It would be great if she paid that $10K this year for you. You would then not have to take out unsubsidized loans and your father would not have to take out PLUS either.

I think you are wise in your wariness about the OSU grant. If there is no assurance it will be replaced, you could be in trouble in following years. OSU makes no guarantees about meeting need. Are your Case awards based on need or are they merit driven?
Congratulations on some nice choices.