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The Federal PLUS Loan is a low interest loan that can be obtained either by parents to pay for the post-secondary education of their dependent children or by graduate students to cover the educational expenses associated with obtaining their own graduate or professional degrees. The Federal PLUS Loan is serviced by the U.S. government through the Department of Education and is part of the government's Direct Loan program. Interest rates for the PLUS loans are fixed at 7.9% for the term of the loan with a 4% fee. The cap for PLUS loan amounts is set at the difference between the cost of attendance and the financial aid, including grants and loans.
The Advantages and Disadvantages of a Federal PLUS LoanFederal PLUS loans offer various advantages over loan serviced by private lenders. The most significant advantage is that the Federal PLUS loan is fixed at a relatively low interest rate of 7.9% for the life of the term instead of a variable interest rate for private loans. Federal direct loans will also never be sold to or serviced by any other lender, can be consolidated, and do not require a separate application besides the financial aid application submitted to the student's institution. The disadvantage with a Federal PLUS loan is that it does not allow individuals to privately negotiate an interest rate and take advantage of individual credit-worthiness. In addition, Federal PLUS loans do not offer fee subsidies that some private loans do.
The Federal PLUS Loan EligibilityIn order to be eligible for a PLUS Loan, the borrower, who may be the student or the parent, must have no adverse credit history and the borrower and the student must be enrolled at least half-time in school. After credit eligibility has been confirmed, borrowers need to complete a PLUS Loan Application and Master Promissory Note. The Master Promissory Note binds the borrow to repay the loan amount and any accrued interest and fees to the U.S. Department of Education. In order to obtain more information, students and their parents may visit the U.S. Department of Education's PLUS website.
What else can I help you with?
What is the average rate of a federal plus loan?
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%.
What is the best federal student loan program?
There are many federal student loan programs to choose from. They include Federal Perkins Loan, Federal Direct Subsidized Loan, Federal Student PLUS Loan, etc. When it comes to deciding which is the best, it depends on one's circumstances.
What is a federal direct plus loan?
The Federal Direct Student Loan program is loan given to students in the United States. If you feel that you are in need of the perfect loan, then maybe this is the right one for you since it is a government loan.
Is a student loan considered federal?
In the U.S., student loans can be Federal or Private.Stafford, PLUS, and Perkins loans are Federal. Most others are private.
What are the qualifications for a parent plus loan?
Qualifications for a Parent PLUS loan include being a parent of a dependent undergraduate student, having a good credit history, and not having any adverse credit history such as bankruptcy or default on a federal student loan.
What happens to federal parent plus loans when the parent dies?
Typically there are only a few ways federal loans can be written off or dismissed. Death or being permanently disabled are a couple of them. If a parent dies, the PLUS loan in their name will be dismissed. No one will need to make payments on it any longer. If his has happened, be sure to notify the lender for the loan what has happened. They will likely ask for documentation of the death.
How can a graduate student apply for PLUS loans?
To apply for a PLUS loan a graduate student must complete the 'Free Application for Federal Student Aid' form. One can do this on the Federal Student Aid website.
What banks offer the college plus loans package?
The college PLUS loan is a federal student aid loan not offered by any bank. To be eligible for a PLUS loan, you must be a graduate or professional degree student enrolled at least part-time with an eligible school in a program leading to a degree or certificate.
What does a PLUS loan enable one to do?
The Federal Direct Plus loan is one of the low interest loans that enables students and parents to receive funds directly from The U.S. Department of Education to pay for education after high school.
Which federal loan can help cover expenses not met by other federal financial aid?
The federal loan that can help cover expenses not met by other federal financial aid is the Direct PLUS Loan. This loan is available to graduate students and parents of dependent undergraduate students, allowing them to borrow up to the full cost of attendance minus any other financial aid received. It can be used to cover additional educational expenses, such as living costs and books.
What is the process for applying for a Parent PLUS loan through the government for student loans?
To apply for a Parent PLUS loan, a parent must complete the application on the Federal Student Aid website, undergo a credit check, and sign a Master Promissory Note if approved.
How can one get a consolidation student loan?
"There are several ways one can get a consolidation loan. In the United States, there is a Federal student loan consolidation program that allows students to consolidate Stafford loans, PLUS loans, and Federal Perkins Loans into a single debt. One can also attain a consolidation loan through a private lender. However, the terms vary from lender to lender such as forbearances and deferments."
