Frequently Asked Questions—Parents

I took out a PLUS (Parent Loan for Undergraduate Students) to help my daughter pay her college expenses. How can I claim the student loan interest deduction on my federal tax return?

You will need either a 1040 or 1040A form for your federal income tax return. You also will need a 1098-E form which you should receive from your lender (The 1098-E form is called a Student Loan Interest Statement.)

To calculate the amount you may claim as a deduction, use the information provided on the 1098-E form along with your own student loan interest records. If you have questions about the time periods of your repayment, deferment or forbearance, contact your lender, servicer, guarantor or secondary market. You also may want to consult a tax advisor to verify or help with your calculations.

In applying for financial aid, how do I know if my son is a dependent or independent student?

Independent students are one or more of the following (otherwise they are dependent students).

  • 24 years of age or older as of December 31 of the current year.
  • a graduate or professional student studying beyond a bachelor’s degree
  • married
  • have legal dependents (besides a spouse)
  • formerly or currently a ward of the court or an orphan
  • a veteran of the U.S. armed services or currently serving in the U.S. Armed Forces on active-duty status for the purposes other than training

    Note that independent students do not include their parents’ financial information when completing the Free Application for Federal Student Aid (FAFSA).

Somebody told me I need a PIN number to file a Free Application for Federal Student Aid (FAFSA). Is that true, and if so, where do I get one? Do I have to get a PIN number for my student, too?

In order to submit a FAFSA on the Web, both parent and student will need their own Personal Identification Number (PIN) from the U.S. Department of Education. The PIN allows you to electronically sign the application. You and your student can obtain this PIN by going to www.pin.ed.gov. Parents of independent students do not have to sign the FAFSA.

With a PIN you or your student can retrieve or revise a submitted FAFSA.
Students can also sign a Stafford Loan Master Promissory note using their PIN.

If I pay off my federal parent loan ahead of time, is there any penalty?

No. You can prepay the accrued interest or principal on your federal loan at any time, and there is no penalty.