Most school payment plans do charge a small enrollment fee (usually $25-75 per semester), but it's often much less expensive than taking out a loan when you factor in interest over time. The payment plans typically spread your balance over 4-10 monthly installments throughout the semester. Some schools even offer interest-free payment plans, which can be a great alternative to PLUS loans if you have the monthly cash flow. I'd recommend calling the bursar's office (not just financial aid) to ask about payment plan options - they sometimes have different programs available that the financial aid office doesn't always mention. It's worth comparing the total cost of a payment plan fee versus the interest you'd pay on a PLUS loan, especially for smaller amounts.

Wow, reading through all of these responses has been incredibly eye-opening! As a newcomer to this whole process, I had no idea there were so many nuances to consider with Parent PLUS loans. The fact that federal Pell Grants won't be affected is reassuring, but it sounds like the institutional aid policies really do vary significantly between schools. I'm definitely going to follow the advice about getting my school's policy in writing before applying. The payment plan option also sounds like something worth exploring - I hadn't even considered that alternative. One question I have is about timing - if I'm comparing a payment plan versus a PLUS loan, should I set up the payment plan first and then apply for a PLUS loan only if needed, or do schools expect you to make that decision upfront when you accept the aid package? Also, for those who have used both options in different years, which did you find less stressful to manage? Thanks to everyone for sharing such detailed experiences - this community is amazing for navigating these complex decisions!

Thanks everyone for the helpful answers! I'm feeling a lot better knowing that my negative SAI is actually good news. I'll definitely keep an eye out for verification requests and compare financial aid packages from different schools. Really appreciate all the advice!

Just wanted to add that you should also look into state-specific aid programs! With your -1500 SAI, you'll likely qualify for additional state grants depending on where you live. Many states have their own need-based programs that stack on top of federal aid. Also, don't forget to check if your schools offer institutional grants - some private colleges are really generous with aid for students with high financial need like yours. Make sure to submit your FAFSA to all the schools you're considering so they can build your complete aid packages!

Update: It finally moved to processing this morning - took exactly 8 business days! Now we're able to make corrections. Thanks everyone for your help and advice. I've already contacted his school to let them know corrections are coming.

Congrats on finally getting through to the processing phase! Eight business days seems to be pretty typical from what I'm seeing here. I'm dealing with a similar situation with my daughter's FAFSA - it's been pending for 5 days now and she also has some errors that need correcting (mixed up our tax info). This thread has been super helpful in understanding what to expect. Did you end up calling your son's school before the status changed, or are you planning to wait until after you submit the corrections?

I'm another parent dealing with this exact same nightmare! My son is applying for his junior year and I was completely lost when the familiar IRS Data Retrieval Tool wasn't there. After reading through all these helpful responses, I realize we're probably okay since we did check the consent box (though like everyone else, it was buried in those acknowledgments). What really frustrates me is how the Department of Education rolled out such a major change without clear communication - they should have had big bold notices explaining that the IRS tool was being replaced with automatic Direct Data Exchange. I've been doing FAFSA applications for years and felt completely clueless with this new system. Thank you to everyone who shared their experiences here, especially the financial aid office insider perspective - this thread has been more useful than hours of searching official FSA resources!

Wow, reading through this entire thread has been such a relief! I'm a first-generation college student and my family has never dealt with FAFSA before, so when I couldn't find the IRS Data Retrieval Tool that all the YouTube tutorials kept mentioning, I thought I was doing something terribly wrong. I've been stressing about this for weeks, thinking I'd somehow broken my application or missed a critical step. Learning that the Direct Data Exchange happens automatically in the background once you give consent is game-changing information that I wish was explained more clearly in the actual application. I just went and checked my "You & Your Finances" section and thankfully I did give consent (though like everyone else, I barely remember clicking through all those acknowledgment boxes). This community thread has been infinitely more helpful than the official FAFSA help pages or any of the outdated guides online. Thank you to everyone who shared their experiences, especially Eve Freeman for the financial aid office perspective - you've probably saved hundreds of students from unnecessary panic! It's frustrating that we have to rely on each other to figure out these major system changes, but I'm so grateful this discussion exists.

When my dad got denied for the Parent PLUS my school automatically added like $4k in extra unsubsidized loans to my aid package. I didn't have to do anything special. BUT my mom was deceased so maybe that's why they didn't try to make her apply lol. No but seriously every school handles it differently and $4k is probably not enough to cover your shortfall. Have you thought about maybe taking a semester off and working to save up some $? Lots of people do that.

Hey Adriana! I went through this exact same situation two years ago when my mom got denied for Parent PLUS. The good news is they definitely won't force your dad to apply - especially since your parents are divorced and he's not involved financially. Here's what worked for me: Call your financial aid office ASAP and ask specifically about the "additional unsubsidized loan for dependent students whose parents were denied PLUS." Don't just wait for them to automatically process it. At my school, I had to submit a one-page form, but some schools do it automatically once they get the denial documentation from your mom. For the remaining gap after the extra $4k, definitely ask about emergency grants or institutional aid. My school had a "student emergency fund" that I didn't even know existed until I asked. Also, if you have good grades, ask if there are any late-deadline scholarships you can still apply for. Don't give up on State University yet - there are usually more options than they initially tell you about!