Special Circumstances Student Loans

Not every student who is looking for a student loan will qualify under the same circumstances. This does not mean that these students are not entitled to the same chance as other students. The way Student Loans work is that the parents are first and foremost responsible for your loans in the aspects that they are held responsible for paying for these loans. What happens when there are no parents in the home? Can these students still apply and receive these loans without parental custody?

The way Federal Loans are designed to work is the amount of your loan is dependant on several things. You would need documents such as W2’s, Tax Returns, Mortgage information and sometimes their credit information. This information is necessary in order to get loans. But in the event that there are no parents, there are special circumstance loans. Every College bound students must complete the FAFSA; this is the Free Application for Federal Student Aid. Without the parental information it would be hard to complete the application. Students who do not have parents may still apply and qualify for these loans under these three circumstances

· The Students parents have been incarcerated · The Student has been removed from the home or has voluntarily left the home under abusive circumstances · Students may not know where their parents are and there is no way to contact them. Students must not have adoptive parents

If any of these circumstances apply then you may skip over the parental information on the FAFSA. Now, these special circumstances we just mentioned are the only ones acceptable to skip the section. If you have parents who do not wish you to fill out the information and decline to give you the information or fill it out themselves or you simply don’t live with your parents it does not exempt you from filling out the form in its entirety.

If these circumstances apply to you then, you can fill out the application online. You simply skip the parental information section and make sure that you sign up for a PIN number so you can track your application within 2 weeks of filling it out. You would leave the parents PIN blank. The downside of filling out this application without parental information is your application is considered incomplete. The FAFSA won’t be able to figure out the Expected Family Contribution, Colleges use this to figure out how much money they are going to lend you.

Once the FAFSA is filled out without the parental information you will have to follow up with the FAA at the College you will be enrolling in. The FAA under the Federal Law has the right to decide whether or not parental information must be given. You will be asked to verify the special circumstances of your situation. For example, if your parents are incarcerated then you may have to show proof; this can be provided by the facility where your parents are. Keep in mind that once the FAA issues a decision it cannot be brought in front of the Federal Student Aid.