FAFSA and Existing Student Loans Forum

[HWS08]

Sorry if this has been posted before, I did a search and didn't see a similar thread.

I am in the process of filling out my FAFSA and unless I am missing it the form doesn't ask anything about existing student loan debt. Is this correct? If so I'm having a hard time understanding why existing debt wouldn't be taken into account when allocating aid.

I am already entering $0 for the question about assets, but if my student loan debt is more than the cash I have in my checking and savings accounts should I just enter $0 for that as well?

Thanks for your help.

[glmn01]

I just filled out my FAFSA and did not put in my pre-existing undergraduate loan debt (there is not place to add that). It is my understanding that FAFSA gives out a predetermined sum (not to exceed $20,000 and some odd dollars per year). Beyond that, it's time for a gradplus loan to make up the cost of attendance difference and then a private loan on top of that if you need it! Hooray! (but don't worry, I think a lot of us are in that boat).

[angioletto]

No, FAFSA does not care how much debt you have already accumulated.

[HWS08]

Well that sucks. Wouldn't someone with, say, $50K in existing loans be more in need of federal aid than someone with $0K in loans, all other things being equal? Thanks for the responses.

[minkins]

Well that sucks. Wouldn't someone with, say, $50K in existing loans be more in need of federal aid than someone with $0K in loans, all other things being equal? Thanks for the responses.

Why exactly? Some people may have less (or no) debt from undergrad because they decided to stay in-state and take a scholarship rather than go to "better" schools, or transferred from a community college after 2 years, etc. So they should get less financial aid for law school because of a previous "sacrifice"? That doesn't particularly seem fair either.

[tstyler98]

Sorry if this has been posted before, I did a search and didn't see a similar thread.

I am in the process of filling out my FAFSA and unless I am missing it the form doesn't ask anything about existing student loan debt. Is this correct? If so I'm having a hard time understanding why existing debt wouldn't be taken into account when allocating aid.

I am already entering $0 for the question about assets, but if my student loan debt is more than the cash I have in my checking and savings accounts should I just enter $0 for that as well?

Thanks for your help.

At the end, the FAFSA will look up your loans via another site, and list it on the form that is sent to schools. So, the amount of student loans you have will be included. Besides, even if you have assets, you'd still get federal loans.

[Georgiana]

Well that sucks. Wouldn't someone with, say, $50K in existing loans be more in need of federal aid than someone with $0K in loans, all other things being equal? Thanks for the responses.

All the FAFSA really does for you is qualify you for government backed student loans. Most law schools do not base their grant decisions on the FAFSA, they have you fill out something else so that they can take your parent's financial information into account.