Every month, HESC’s “Question and Answer” Web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s winning question:

A dependent student wants to apply for a FFEL loan at their college, however, the student’s parent(s) indicate they will not complete a FAFSA. May the Financial Aid Officer (FAO) offer the student an unsubsidized loan?

The Higher Education Opportunity Act (HEOA) of 2008 allows an FAO to use professional judgment and offer a dependent student an unsubsidized loan if the FAO verifies that the parent(s) has ended financial support to the student and refuses to file a FAFSA. The verification can be provided by a written, dated statement from the parent(s), or documentation from a third party, such as a teacher, counselor, clergy, or court. Self-certification by the student is not sufficient.

Be advised that financial support includes not only payment by the parent(s) of educational costs, but also cash and non-cash support such as room and/or board.

The student is still required to establish loan eligibility by completing and submitting a FAFSA that includes the required student information.

The maximum annual unsubsidized loan amount that the dependent student can receive is the same available to all dependent students (base and unsubsidized) and not the higher additional unsubsidized amounts available to independent students or dependent students whose parent(s) cannot obtain a PLUS loan.

Direct questions regarding this guidance to the Office of Counsel and Regulatory Compliance at 518- 473-3986; or toll-free at 1-866-431-HESC (1-866-431-4372), press 6; or via email at askpolicy@hesc.org.