Student loans are no longer dischargeable in any chapter of bankruptcy unless you can prove that repaying the loan creates an undue hardship on you or your family. Prior law allowed their discharge once they had been in pay status for 7 years. The law changed in the fall of 1998.
Proving hardship usually requires showing that you can't provide a minimum standard of living for yourself and your dependents if you have to repay the loan. Some courts will discharge part of the loan on a showing that repaying it all would be a hardship.
Student loans are sometimes unenforceable due to school closures, fraud, etc. Chapter 13 can provide a way to cure defaults on student loans, or to pay them off over the course of the plan.
Since PLUS loans are based on the parent's credit, most lenders will not pre-approve a parent that is in chapter 13. However, if the parents do apply and are denied a PLUS Loan, the student will then be eligible for additional unsubsidized Stafford Loan funds (currently as much as $4000.00 more per school year).
Only a parent can apply for a parent loan. the payment plan for a student loan can be deferred until after graduation. It all depends on who is paying the loan off, the student or the parent
Student loans are exempt from bankruptcy as are IRS debts
There are loans available that are for the purpose of helping parents pay the cost of putting a child through collage. The loan is called a Parent Plus Loan and the Parent Plus Loan website offers the ability to secure this type of loan for those that apply and are accepted for it.
What is a Parent PLUS Loan?A Direct Parent PLUS Loan is a loan that is available for eligible parents of dependent students to pay for education expenses. A Parent PLUS Loan is available to cover the remaining amount of a student's cost of attendance after any other financial aid that the student is awarded. These loans are beneficial because of their relatively low and fixed interest rates of 7.9 percent. However, these loans do charge interest from the date that the first payment is disbursed until the loan is paid off.Who is Eligible for a Parent PLUS Loan?To be eligible to receive a Parent PLUS Loan, an individual must be either the student's biological parent or the adoptive parent. Some special cases allow for a student's stepparent to be eligible to receive a Parent PLUS Loan. The parent must meet certain credit history criteria, but a parent with a bad credit history is still eligible to receive the Parent PLUS Loan if a friend or family member co-signs for the loan. The student must be the Parent PLUS Loan receiver's dependent and enrolled in undergraduate school least half-time. Additionally, both the student and the parent need to be U.S. citizens or eligible permanent residents to qualify for the loan.How do you Apply for a Parent PLUS Loan?To apply for a Parent PLUS Loan, the parent needs to fill out a Direct PLUS Loan application. The parent also has to complete a Master Promissory Note, which is a legally-binding contract that requires the signer to repay the loan, interest and fees in full. A parent must submit a new loan request each year that the student requires funding for school, but the Master Promissory Note is typically sufficient for subsequent loans. The application and Master Promissory Note can be completed online at www.studentloans.gov. Once the department approves the loan, the payments are disbursed to the student's school. After the school has deducted the costs of tuition, room and board and any other charges, the school issues a check or direct deposit to the parent. The remaining funds must be used for purposes related to the student's schooling.
Parent's who are trying to help further their education may apply for a Parent Plus Loan. The foremost requirement is that you must have a child that is planning to attend school.
What is a Direct Parent PLUS Loan?A Direct Parent PLUS Loan, often just called a Parent PLUS Loan, is a type of loan that parents can obtain to help pay for his or her student's educational expenses. A Direct Parent PLUS Loan is the perfect way to cover the remaining educational expenses after the student's additional financial aid assistance. These loans are appealing because they offer relatively low interest rates that are fixed at only 7.9 percent. Federal loans offered to the students typically have lower interest rates, but a student have minimal borrowing power due to his or her age and limited credit history. Additionally, these loans accrue interest from the date of the first payment disbursement until the parent has completely paid off the loan.Who Qualifies for a Direct Parent PLUS Loan?A person can qualify for a Direct Parent PLUS Loan if he or she is the student's biological or adoptive parent. Some situations allow for the student's stepparent to qualify for the loan. To be deemed eligible for a Direct Parent PLUS Loan, the parent must have a good credit history or be able to obtain a friend or relative co-signer for the loan. Additionally, the student must be a dependent and be enrolled in classes at least half-time. Lastly, the parent and the student have to be either U.S. citizens or qualified noncitizens to qualify for a Direct Parent PLUS Loan.What is the Application Process?To obtain a Direct Parent PLUS Loan, a parent must fill out and submit a Direct PLUS Loan application and a Master Promissory Note. The Master Promissory Note is the parent's agreement to repay the loan, interest and fees in full over the designated amount of time. The Master Promissory Note lists the terms of the loan and the repayment agreement. The Master Promissory Note typically covers all subsequent loans, but a parent must submit a new loan request each year that the student needs financing for school. The parent can submit both the Master Promissory Note and the application online at www.studentloans.gov. Once the loan is approved, the payments are disbursed directly to the student's educational institution.
The average rate of a Federal Direct Parent Plus Loan and Federal Direct Plus Graduate Loan is now 7.9%. This rate is fixed for the life of the loan and cannot exceed 8.25%.
The main benefit of the Plus Loan is that the parents can borrow the entire cost of the child's undergraduate education. Another benefit is that the loan is low-interest.
It is called a PLUS loan in the U.S.The financial aid office at the student's school can tell you what lenders offer PLUS loans
In the US, unfortunately the answer is no. A parent PLUS loan must stay with the parent. If you cosigned on a loan for your child and the loan is federally guaranteed, then you can get your name off of the loan by having your child consolidate the loans. If you need help with the consolidation of the student loans, click on the link at the bottom of this text box.
Parent didn't sign Masters Promissory note so it is technically not the parent's loan or responsibility right? Because of this, can a Direct PLUS loan get transferred to the child if a mistake was made in the loan process?
No, it is the parents sole responsibility.
A parent plus loan is exactally that. A loan for parents to help their children with college expenses and can only be given to parents under the parent's name. You also need to begin to repay that loan while your child is still in school, usually within 60 days.
A parent PLUS loan is a college loan that is taken out by the parents of the student attending school. The interest rates are typically lower than can be found for other types of loans. These loans are available when financial need exceeds the amount of personal loans and scholarships that the student has received.
No. You'd have to get a personal bank loan in your own name and use it to payoff th eplus loan.
Student get a loan from the bank for thier abiltyas take loan of eduvation loan.paid at time these loan when you settelend ur life.low rateof return.ghese loan payment is easily for the student
As a parent of a dependent student working towards an undergraduate degree, you have the option to qualify for a Direct PLUS loan to help pay for education expenses. They are also available for both graduate and professional students who need financial assistance and are qualified as independent students.RequirementsAn individual must be the parent or adoptive parent of a student to qualify for a PLUS loan. In cases where one biological or adoptive parent has been re-married, a step parent may qualify. The student must also be enrolled in school for at least half-time. A credit check is also requires to assess the credit worthiness of the parent at the time of borrowing. A co-signer may be required where adverse credit is an issue. Both the student and parent must also not be in default for any federal education loans.Application ProcessA parent needs to apply for a PLUS loan by completing the Direct PLUS Loan application and a Master Promissory Note (MPN), which is an agreement to repay the amount of the loan along with fees and interest that accrue. It's also useful to read over and keep filed since it explains the terms of the loan and can be used for reference if any questions come to mind during the course of the loan.Fees and InterestPLUS loans must be approved by the college's financial aid office after the Free Application for Federal Student Aid (FAFSA) is submitted. The interest loan for a PLUS loan is fixed at 7.9% and interest begins accruing when the money is dispersed to the school. It's possible to get a reduction of .25% in the repayment interest rate by signing up for automatic debit payments from a bank account. The government also charges a 3% origination fee on the full amount of the loan, which is deducted from the principal of the loan when disbursed each semester.The parent, not the student, is responsible for full repayment of the loan. If you are not approved for a PLUS loan, you may also try finding a co-signer or apply for a private loan instead.
If it's a Parent PLUS loan, no. She's the borrower, not a cosigner.
Federal student loans like Parent Plus loans are available from specialized locations. The United States government has a site where prospective loans are applied for and ultimately signed for with a promissory note.
not if you have death insurance on the loan and credit cards