How to Understand How Living With My Parents Affects My Eligibility for a Student Loan

Living at home with your parents while you go to college might save you money, but does it affect your student loan eligibility? Depends on the type of student loan. Here is how living with parents affects student loan eligibility.

Difficulty: Moderately Easy

Instructions

1. Living at home reduces the estimated cost of attendance, which reduces your financial need. You will be classified as a dependent, and only qualify for $23,000 in federal loans.

2. Living at home does not disqualify you from getting Stafford loans. They are not need-based.

3. Living at home can disqualify you from getting Perkins loans. These loans are need-based and are only awarded to the most needy students.

4. Living at home makes it more difficult to declare yourself an independent student, even if you pay rent to your parents. Independent students are generally eligible for more student loans than dependent students. Independent students can get a maximum of $46,000 in loans.

Tips & Warnings

• The total number of dependents living at home affects the estimated family contribution, which in turn affects financial need.
• Do not falsify information on your FAFSA to get a better aid package. The penalties are far worse than the benefits.

Who Can Help Sponsored

• Thinking about getting your degree? Find financial aid from top online colleges and find the perfect program that meets your needs.
• Earn your degree from industry experts at University of Phoenix. Take the next step in your career.