Parent PLUS Loan Overview

The Parent PLUS loan is a federally sponsored low interest student loan for parents dependent undergraduate students. With this type of loan it is possible for families to finance the entire cost of a child's education, if necessary.

Parent PLUS Loan Eligibility Guidelines

It is important to understand there are some eligibility guidelines which apply to the Parent PLUS loan. These guidelines include:

• Must be a U.S. citizen or national, eligible non-citizen or U.S. permanent resident
• Must pass credit check

It should be noted that in the event a parent is denied a Parent PLUS loan due to their own credit history, it is possible for them to become eligible for the loan if they have an endorser who is creditworthy. The endorser must meet all other eligibility guidelines.

While the Parent PLUS loan is only for parents of dependent undergraduate students, graduate and professional students may wish to consider the Graduate PLUS loan.

The Parent PLUS loan provides numerous benefits to parents:

• Flexible repayment options
• Ability to postpone repayment for up to 60 months
• No prepayment penalty
• No collateral or income requirements to qualify
• Interest on the loan may be tax-deductible

In addition, the interest rate for Parent PLUS loans is fixed.

Repayment options include standard repayment, graduated repayment, income-sensitive repayment, extended repayment and consolidation. The standard repayment option gives parents the ability to make payments over a 10 year repayment term. With a graduated repayment option, payments are lower in the first years of the repayment period with payments increasing after that point. The entire loan is paid back over a maximum 10 year period with the graduated repayment option.

The income-sensitive repayment option provides the ability for payments to be based on a percentage of your gross income. The extended repayment option is a good choice when you have a lot of student loan debt. It allows you to extend repayments over a 25 year term. Standard or graduated payments can also be used in conjunction with the extended repayment plan.

The Parent PLUS loan is also eligible for student loan consolidation, allowing for a single monthly payment and fixed interest rate.

Parents considering the Parent PLUS loan should be aware that they are responsible for all interest that accrues on the loan. Any unpaid interest will be added to the principle of the loan.

Whether you need a Parent PLUS loan, Stafford loan or a private loan, Studentloans.info can help you choose the loan that will best meet your needs. Let us help you get started today.