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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.
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%.
How can one apply for a Direct PLUS loan?
It is possible to apply for a Direct Plus loan directly online through the official Government's Direct website or also through the Governments official student finance website.
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 does DLSTFD loans mean?
Direct Subsidized Stafford Loan
Where can one find information on direct loan payments?
One can find information about direct loan payments on various websites like Direct and StudentAid. Both websites offer a great amount of information about all kinds of loan payments, including about direct loan payments.
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%.
How can one apply for a Direct PLUS loan?
It is possible to apply for a Direct Plus loan directly online through the official Government's Direct website or also through the Governments official student finance website.
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 income contingent repayment plan is available for direct plus graduate or professional borrowers?
As of July 1, 2009, graduate and professional student Direct PLUS Loan borrowers are eligible to use the ICR plan. Parent Direct PLUS Loan borrowers are not eligible for the ICR repayment plan.
How do you Transfer a plus loan to child?
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?
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 is a Direct Parent PLUS Loan?
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.
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.
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 does DLSTFD loans mean?
Direct Subsidized Stafford Loan
Where can one find information on direct loan payments?
One can find information about direct loan payments on various websites like Direct and StudentAid. Both websites offer a great amount of information about all kinds of loan payments, including about direct loan payments.
What are the differences between a Federal Perkins Loan and a Direct Subsidized Loan?
The main difference between a Federal Perkins Loan and a Direct Subsidized Loan is the entity that provides the loan. The Federal Perkins Loan is offered by the school itself, while the Direct Subsidized Loan is provided by the federal government. Additionally, the interest on a Direct Subsidized Loan is paid by the government while the borrower is in school, whereas interest on a Perkins Loan begins accruing immediately.
