The Federal PLUS Loan for Parents

One of the most tragic obstacles facing young (and even older) people is the belief that they can’t attend school because of financial limitations. Each year, millions of brilliant minds across the country are forced, by this tragic belief, to forego their academic and career dreams.

What makes this belief all the more tragic is that, for so many people, it is FALSE! The plain truth is, is that the Parent PLUS loan (which is sometimes called the Federal PLUS loan) is available to parents REGARDLESS of income level. In other words, accessing these federal student loans is something that virtually all parents can achieve on behalf of their child/children.

For parents, the application process for these types of government student loans involves:

• Parents having a record of good credit history and not be in default on any other loan.
• Parents being able to verify that the child in whose name the funds are being sought is economically dependant on the applying parent
• Parents and children being US citizens
• Children being enrolled at least half-time in an undergraduate program.

Once these basic criteria are met, the parent can borrow up to the TOTAL amount of the cost of the undergraduate program! Yes, it’s true: the Parent PLUS Loan Option sponsored by the federal government is not a dollar-for-dollar matching loan, nor does it require that parents subsidize the loan; which is, unfortunately, what a lot of misinformed parents and children think! No, the Parent PLUS Loan Option offers FULL undergraduate tuition for qualified applicants. As an added security bonus, the interest rate on the loans is capped at 9%, and there is never a penalty to repay the loan early.

So if you have ever thought to yourself that you can’t attend school (or that you can’t send your child to school) because of financial limitations, then the Parent PLUS Loan Option may be PERFECT for you.

See also: Student Credit Cards

-- Parent PLUS / Federal PLUS Loan --