Dec
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Parent Plus Loans
December 25, 2010 | Leave a Comment
A PLUS Loan is a student loan offered to parents of students enrolled at least half time in eligible programs at participating and eligible post-secondary institutions. As of July 1, 2006 PLUS Loans are also available to graduate and professional students at participating and eligible postsecondary institutions.
PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.
Parent Loans, also known as Parent Plus Loans, are for parents that have children pursuing their first undergraduate degree at a post-secondary institution. This type of loan is meant to help parents pay for their child’s education. Now that many private financial institutions are no longer participating in the student loan market, the parent loan is even more relevant.
In order for parents to become eligible for this type of student loan, they must complete the FAFSA, also known as the Free Application for Federal Student Aid. This application takes into account the families adjustable gross income, total assets, and current financial obligations. If the government determines that the parents are eligible to receive the Parent Plus Loan then they will receive a letter outlining the total award amount for the upcoming school year.
A credit check will be completed for all eligible parents that accept the Parent Loan. This credit check is to make sure that they have a good credit history, since credit history determines your credit worthiness. If you don’t have a high enough credit score then you can have a co-signer, who will be obligate to make any payments that you are unable to make.
Now that the private student loan market has been diminished due to the economic downturn, it’s important to find other forms of student aid. The Parent Plus Loan is a great alternative, since it offers a low interest rate and offers very favorable repayment terms.
Source: http://www.plusloan.co/?p=7
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