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The federal government offers Parent PLUS loans as a supplement to grants, scholarships, and Stafford loans. Thankfully, unlike some private loans, the eligibility requirements are simple, straightforward, and fairly easy to meet.
First, the student usually has to submit the Free Application for Federal Student Aid (FAFSA), depending on the institution. Parent PLUS loan eligibility is not determined by family income, so while the FAFSA may be required by the institution, a higher Estimated Family Contribution (EFC) will not bar a family from eligibility.
The second requirement for PLUS loan eligibility is that the person applying is the legal guardian of a dependent undergraduate student. This phrasing is important. It means three things: first, the student must be pursuing undergraduate, not graduate, work. Second, the student must be a dependent of the applicant as defined by the FAFSA, which is ages 21 and under. If the student is over 21 or has been emancipated from the parents, the parents are no longer eligible for the loan. The easy way to know whether or not the student is a dependent is if he or she had to fill in the parent's information on the FAFSA form. Yes means the student is a dependent; no means the student is not. Third, the person applying must be able to verify legal guardianship over the student.
After filling out the application, which can be found at the Parent PLUS loan website, the only eligibility requirement is passing a credit check. While this credit check is fairly forgiving, it is possible to be declined on the basis of serious adverse credit history, including cases of foreclosure, Title IV debt, or failure to pay on debt for more than 90 days.
Parent PLUS loans are a great low-interest way to fund a student's higher education. Because they aren't need-based, they are accessible to most families who do not qualified for other income-based grants and loans. Since eligibility requirements are easy to understand and meet, they provide a safe way to pay for college when other financial aid doesn't cut it.
What else can I help you with?
How do I transfer a Parent PLUS loan to the student?
To transfer a Parent PLUS loan to the student, the parent and student must contact the loan servicer to request a transfer of responsibility. The student will need to meet certain eligibility requirements and undergo a credit check. Once approved, the loan will be transferred to the student's name, and they will be responsible for repayment.
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.
How can a student refinance Parent PLUS loans in their own name?
A student can refinance Parent PLUS loans in their own name by applying for a private student loan and using the funds to pay off the Parent PLUS loan. This process transfers the debt responsibility from the parent to the student, who must meet the lender's credit and income requirements for approval.
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.
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 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.
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.
