Parent PLUS Loans are federal-sponsored student loans for parents
who have dependent undergraduate and graduate students. Parents can borrow up to the full
cost of education minus any financial aid awarded to
the student.
PLUS Loans are available to all qualified
borrowers regardless of their financial situation. Borrowers must pass a credit check in order to qualify.
Pays
the Entire Cost
parents can borrow up to
the total cost of education
minus any financial aid
received by the student.
Now Available for Graduates and Professionals
graduates and professional students can borrow on their own behalf up to
the total cost of education
minus any financial aid
received.
Flexible
Repayment Plans
The federal government offers
flexible repayment plans
that can fit your budget.
for parents: loan payments begin 60 days after disbursements have been made to the school.
Disadvantages of Parent PLUS Loan
Loan
Must be Repaid by the Borrower
the loan is underwritten
for the parent; the parent and not the student is responsible for repaying
the loan.
Requires
Federal Filings
you must file the FAFSA
form with the federal government
in order to apply for PLUS
loans:
see
FAFSA file
Credit
Check Required
in order to qualify for
the loan, you must pass
a credit check as set by
the federal government.
Multiple
Borrowings
you have to file and apply
for a loan each academic
year.
