Student Loans and Financial Aid
Money Management

What is the different between a parent loan and a student loan?

Top Answer
User Avatar
Wiki User
Answered 2012-05-24 21:27:43

Parent Loan: A parent is getting the loan

Student loan: A student is getting the loan

User Avatar

Your Answer

Related Questions

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

In some instances, a parent can get out of a student loan if they are unable to work. You can visit the Federal Student Aid website for information about discharge of debt.

Probably not. What the loan is for isn't the issue. His record of repaying loans is.

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

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.

It is perfectly acceptable for a parent or guardian to co-sign on a student loan. Actually, this is usually the case as the student doesn't have enough credit to qualify for a student loan by themselves.

If the student loan is taken out in the name of the student then no. The student's credit score is separate from anyone else's. If the student loan is taken out in the name of the parent or with them as cosigner then yes - their credit scores would come into play.

My daughter attends a California State University,I didn't qualify for a parent plus loan. She was given a higher student loan limit for each semester. She initially was awarded 2950 per semester and after my decline she was then awarded a blend between sub. and unsub. loans of 4750 per semester. She was looked at more as a independent student vs a dependent student.

Probably not - the reason a parent had to co-sign on the student loan is so the bank gets its money back if the student defaults. Unfortunately, you are probably on the hook for all the money and the default will be reported on your credit report.

All Federal Student Aid is available to any college student age 16 and older. This includes Federal Student Loans such as the Stafford and Perkins Loans. You can also take out a parent loan, otherwise known as a PLUS loan, which will be loaned to the parent to help pay for their child's education.

there are a couple of credit based companies that will give a private student loan to creditworthy student and a co-borrower such as a parent if necessary. You can use the loan for tuition, books, transportation, housing, and any other related expenses that you'd have as a student.

Depending on where one is tying to obtain the direct loan, the requirements might be different. A direct loan for schooling purposes has several requirements, the first being that the person applying is the biological, adoptive, or stepparent. The student must be a dependent in order for the parent to qualify for the loan and that student must be enrolled at least half time at a participating institution. The last requirement is that the parent release income information to the FAFSA.

There are many places to research student loan settlement. You can look at various places on the web or at many banks. Looking for loan settlements can be difficult start by checking

No! Probate Court or the student loan provider may look to some of the asets that your parent may have left behind to satisfy the student loan. But you cannot be made personally liable for your parent's studnet loans unless you co-signed for them.

I think it depends on the loan,what type of loan you are applying. Different type of loans have different amount of money.

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.

I need a student loan. Where is a list of places to acquire a student loan?

No. You'd have to get a personal bank loan in your own name and use it to payoff th eplus loan.

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 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.

Students don't have to provide any collateral to get a student loan. On some student loans, payment may be deferred until the student is out of college.

what is a student loan grant?

The student loan calculators shows the repayment amount and the salary needed to afford the repayment. Traditional loan calculators only show the repayment amount and schedule.

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

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 Once the loan is approved, the payments are disbursed directly to the student's educational institution.

Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.