Financial Aid For Parents

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

With the first day of school just around the corner (can you believe it?) for many college students, we're taking this month to really focus on student loans. In our last blog, we covered three mistakes to avoid when filing for financial aid. Today, we're diving into financial aid for parents and going over some of the basic knowledge they should have prior to filling out any forms. If you're a parent of a child who is about to embark on their journey to higher education, you'll definitely want to know the following:

Co-signers may be responsible: Even if your child is taking on the bulk of their student loans and putting them in their name, as their co-signer you may find yourself responsible for paying off their debt. Should your child be unable to make their payments due to unforeseen circumstances, you must be prepared to take over. Not to mention, US News explains that the debt can even appear on your credit report, even if you aren't the one directly paying and the payments are made on time. If you plan to co-sign, don't fall into the trap of thinking it's the easy way out.

Deadlines are serious: You may be on track to meet the deadlines for federal and state loans, but if you're seeking financial aid directly through your child's school, you mustn't assume that their deadlines are the same. To ensure that you don't miss out on helpful opportunities, always check the school's financial aid policies to learn its requirements and when applications are due.

The name matters: Regardless of who is going to be taking care of the payments, the name you put down on any application has a huge impact on the type of financial aid received. Additionally, even if you're putting the loans in your name but your child has agreed to contribute to the bill, keep in mind that if a payment is late or missed, it will be reflected on your credit report since it's your name that is on file.

For more must-know financial aid tips for parents, please click here.

At American Investment Planners LLC, we understand the complex nature of applying for financial aid and understand that it can be tricky for families to figure out exactly which approach is best. Additionally, we also understand the necessity of saving for college early on in order to prepare for the increasing costs you'll experience as your children head off to school. To learn about the financial guidance we can provide for college, give us a call at (516) 932-5130.