Policy Frequently Asked Question: FAFSA Requirement for Parent PLUS-Loan Eligibility

Our school is working with a parent who is refusing to complete the Free Application for Federal Student Aid in order to get a PLUS loan for the dependent student. Is there a requirement that mandates that a student complete the FAFSA before a PLUS loan can be processed?

There is no federal requirement that the student and the student's parent complete a FAFSA in order to be eligible for parent PLUS-loan funds. The school may — and many schools do — establish a policy that requires the completion of a FAFSA prior to certification of a parent's eligibility for a PLUS loan. Federal regulations, however, do not mandate this type of school requirement. If the school's policy requires the student and parent to complete the FAFSA, then the school should apply the policy consistently to all parents as a condition of PLUS-loan eligibility.