0
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.
What else can I help you with?
How can a parent transfer a Parent PLUS loan into their student's name?
A parent cannot transfer a Parent PLUS loan into their student's name. The loan is the responsibility of the parent who took it out, and the student cannot take over the loan.
Is it possible to transfer a Parent PLUS loan from one parent to another?
No, it is not possible to transfer a Parent PLUS loan from one parent to another. The loan is the responsibility of the parent who originally took it out.
Is it possible for me to transfer a Parent PLUS loan to the student?
No, it is not possible to transfer a Parent PLUS loan to the student. The loan is the responsibility of the parent who took it out, and cannot be transferred to the student.
What happens to Parent PLUS loans if the parent dies?
If a parent with a Parent PLUS loan dies, the loan may be discharged, meaning the remaining balance may be forgiven.
Is it possible to refinance a Parent PLUS loan in a student's name?
No, it is not possible to refinance a Parent PLUS loan in a student's name.
What happens to a parent plus loan if the parent dies?
If a parent who has taken out a Parent PLUS loan dies, the loan may be discharged, meaning the remaining balance may be forgiven and the responsibility for repayment may be eliminated.
What is the purpose of a parent's Plus loan?
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.
Is it possible for me to transfer my Parent PLUS loan to my spouse?
No, it is not possible to transfer a Parent PLUS loan to a spouse. The loan is the responsibility of the parent who took it out, and cannot be transferred to another individual, including a spouse.
What happens to Parent PLUS loans when the parent dies?
When a parent with a Parent PLUS loan dies, the loan is typically discharged, meaning the remaining balance is forgiven and the responsibility for repayment is lifted.
How can parents apply for a Parent PLUS loan through the www.studentloans.gov website?
Parents can apply for a Parent PLUS loan through the www.studentloans.gov website by logging in with their own FSA ID, selecting "Apply for a Direct PLUS Loan," choosing "Parent PLUS" as the loan type, completing the application, and submitting it for review.
What credit score is required for a Parent PLUS loan?
The credit score required for a Parent PLUS loan is generally around 650 or higher.
What is better a student loan or a parent plus loan?
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
