Federal loan parent student undergraduate
Part of the Federal Family Education Loan Program, the Parent Loan for Undergraduate Students (PLUS) is a credit-based loan program planned to help you pay for your child\'s college education . The PLUS loan is accessible to parents of dependent, undergraduate students . An eligible parent borrower is a dependent student\'s natural or adoptive mother or father . The spouse of a parent who has remarried is an eligible borrower if his/her income and assets are taken into consideration on completing the Free Application for Federal Student Aid (FAFSA) . You must be a U.S. Citizen, U.S. national or eligible non-citizen to qualify. Credit guiding principle applies in deciding your eligibility . You are entitled for a PLUS loan for each child who is enrolled at least half-time in school and fulfill the school\'s standards for satisfactory academic progress . Eligibility for PLUS loans is not based on need or income .
Eligibility
A parent is usually required to pass a credit check . However, the check is not as rigorous as it is for other loans with which you are more familiar (e.g. an auto loan or mortgage). If the parent borrower is deprived of based on credit, they may still be able to get the loan if they are able to get someone from the family such as a relative to endorse (co-sign) the loan . The student and parent must also meet other general eligibility requirements for federal student aid .
Loan Limits
A parent can borrow up to the price of attendance (established by the school) minus other fiscal aid including other loans .
Interest Rate
For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed at 7 .90 for Direct PLUS Loans and 8 .50 percent for FFEL PLUS Loans.
Fees
A fee of up to 4% is charged to borrow a PLUS loan . Majority of lenders pay this fee on behalf of borrowers, but not all . You need to cautiously review the conditions of your loan when they are offered by your lender .
Repayment
Repayment of a PLUS loan starts instantaneously after the last disbursement of the loan. PLUS loans, like all federal loans, are distributed in equal amounts over the course of an academic year . In a school that uses semesters, it implies that one disbursement in the commencement of the fall and one in the beginning of the spring . Expenses would begin after the spring disbursement.
Repayment Term
The standard repayment term is for ten years . However, depending on the total amount borrowed, the repayment term can possibly be extended up to 25 years . If justifying conditions develop during repayment, a borrower may demand leniency (temporarily stop paying). During leniency, the borrower does not have to make expenses, but interest continues to accumulate and gets added to the primary if no payments of interest are made .
Edamerica
Edamerica offers a 1% upfront discount plus an additional 0 .25% auto-debit rate reduction on parent loans for undergraduate students .
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