If you’re a parent, you might be interested in helping your children attend college via a loan. Here’s what you need to know about federal parent PLUS loans.
Parent PLUS loans may still be eligible for federal loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF), if certain requirements are met after the student graduates. Parent borrowers can also consolidate their student debt with a Direct Consolidation Loan and even take advantage...
There are two types of student loans that parents can choose from: Parent PLUS Loans and private parent student loans. Parent PLUS Loans The Direct PLUS Loan program is a federal student loan program and includes Parent PLUS Loans. Only biological, adoptive parents or, in some cases, steppar...
What is a Parent PLUS loan? A Parent PLUS loan is a federal student loan taken out by the parents of dependent undergraduate students. Independent or graduate and professional students can borrow Grad PLUS loans. Since it's a federal loan, parents and dependent students must complete the Free...
Federal parent loans Federal parent loans are known as Parent PLUS Loans. To qualify, you must be the biological or adoptive parent of an undergraduate student, not have an adverse credit history and meet general eligibility criteria for federal student aid, according to the Department of Education...
Students get much lower rates on federal student loans than parents. Interest rates for undergraduate direct subsidized and direct unsubsidized loans are currently 6.53%. And in the end, the students have more working years ahead of them than their parents do. ...
How do college parent PLUS loans work? Applied for via the FAFSA, Free Application for Federal Student Aid, a Parent PLUS Loan comes with a fixed interest rate for the life of the loan. Parent PLUS Loans also include an origination fee of 4.228% of the principal loan amount. That fee ap...
How to choose a parent student loanThe decision between federal PLUS loans and private parent loans is a personal one, but there may be some instances when one loan works better than the other.When to use a federal PLUS loanYou could benefit from federal loan benefits: If you want access ...
Here’s what you need to know about Parent PLUS loan consolidation options.Parent PLUS loan consolidation through Uncle SamThe good news is PLUS loan borrowers can consolidate their federal loans into a new Direct Consolidation Loan. Even if you have no other federal student loans to consolidate,...
Parent PLUS loan interest rates do not depend on an applicant’s creditworthiness. Key Takeaways Parent PLUS loan interest rates and fees are set by the Education Department, based on when the loan is originated. PLUS loans have the highest rates of any type of federal student lo...