<p>I know student who is about to become an orphan as her single mother is in a very bad shape. Her financial aid includes a parent plus loan that was underwritten by her mother in the first year of study. Is there way to substitute this loan with something, even with the same loan underwritten by student herself, like in graduate school? Student will probably take MCAT after the second year, and staying with current university is really beneficial for admission into the better medical school.</p>
<p>My sympathies for the student and her mother. Kelsmom can probably help you best with this question. PM her directly.</p>
<p>The PLUS loan is only available to parents or grad students. The student can not take out PLUS loans in her own name. But if her mother does pass away, the student will become an independent student making her eligible for higher federal direct student loans ($10,500 for sophomore, $12,500 for 3rd and 4th year). Additionally her EFC will be based on just her own income, possible making her eligible for more aid.</p>
<p>The aggregate debt limit just for the federal direct loans is pretty high for a young person to graduate with. If that and any additional aid is insufficient to pay for the current school, she would be better off going to a more affordable school. Med school will likely put her even deeper into debt, so minimizing undergrad debt should be a goal.</p>
<p>Swimcatsmom is correct (as usual!). The student needs to re-file her FAFSA at the point when her mom passes away. She should do this with the help of her school’s financial aid office, as they will probably want to have verification of the death. Also, that will make it go as smoothly as possible.</p>
<p>If the student does not earn a lot, she will most likely be eligible for a Pell grant. If she is lucky, she may also get institutional grants (may be too late for this year, but could be a bonus next year if she files FAFSA in a timely manner). Her loans will be available at the independent level, as stated above. There is no other federal loan option - so hopefully, this amount of borrowing will do the trick for her.</p>
<p>If there is an insurance payout to the student, the student will get hit with that as an asset next year.</p>
<p>Thanks to everyone, but here is couple of points. Unfortunately it is very expensive university, it even known in the city among many other colleges as place where rich people are. With about $1Bln endowment and only about 3000 US based students it is also one of the stingiest among the top universities. Extension of the limit for federal loans would not even cover 25% of shortfall. Please, keep in mind that Plus loans for parents only allowed when Stafford/Perkins loans are maxed out. Student can work at the University and make about $20k a year to make up for the shortfall, but this way she would undermine her Pell grant eligibility for the next year. But with minimal goal to stay there for at least another year that might do. She really got a shot at the top med schools including Harvard med., if she would manage to remain a student there when her application is processed. On the third year she would be able to stay there if the University would be able to give her a job paying in the tune of $40k part time, so she can try to make credits for graduation requirement for that one remaining year and two remaining summers, one of which would be partially wasted prepairing for the MCAT after the second year.</p>
<p>I would be shocked if a student was given a part time job for $40k. I would bet most full time non-management administrative staff barely make that.</p>
<p>I too, would be shocked if student were given any job for that amount of money. </p>
<p>Pragmatically, mom can take out maximum PLUS loans for student and conserve all assets for the time when she is no longer alive. The loans are forgiven upon death, so the student or the estate won’ t have to pay them. </p>
<p>Friends of ours had an older dad who took out max loans for his two daughters and died shortly thereafter.</p>
<p>I want to add that it is not so essential that the student or any student stay at any particular college. I went to one of the most well recognized pre med factories in the world, and most of the premeds starting out did not end up in med school. I think a number of them would have been better off at a less rigorous school, but I can tell you that not a single one who made it into medical school had a better shot of it due to the presitigious UG program they underwent. I agree that it would be a wonderful thing for this young woman to be able to continue where she is, as enough turmoil and grief is in her life, but it is absolutely not the essential thing that it is being made out to be.</p>