PLUS student loans can help you further in your children's college education. Like I said elsewhere, only a handful can take advantage of tennis scholarships. Or basketball scholarships and other sports scholarships. College tennis recruiting is an empty word if you don't have kids who are talented enough to get a tennis scholarship.
But fortunately, living in the US affords you with golden opportunities for college education not found in the majority of countries in the world. Even though the loans that you can apply for is not free, the interest rates for these loans are very low compared to private loans.
Families may borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses, travel less any other aid.
The federal Parent Loan for Undergraduate Students - PLUS Student Loans - may be the right supplemental loan for you.
- These loans are non-need based, only credit rating based, which means that anyone can apply.
- The interest rate is low, adjusted annually by the Department of Education.
- It is currently 4.17% for the 7/1/04 - 6/30/05 loan period. Rates are capped to never exceed 9%, often making them much more affordable than other forms of financing.
- The PLUS student loans require no collateral (unlike other type of loans - including home equity). There is no penalty for early repayment, and consolidating your loans after graduation is easy!
- Interest may be tax deductible under the Hope Education Tax Credit.
- Completion of the Free Application for Federal Student Aid (FAFSA) may not be required (but recommended).
- Funds are usually disbursed quickly, during the first weeks of the semester.
- The primary benefit is that families can borrow federally guaranteed, low interest loans to help pay for their child's education, without needing to worry about collateral, need-based forms, or FAFSA preparation time. Use our online application to Apply Today!
Here's a question and answer format to better educate you about PLUS student loans.
What are PLUS Student Loans?
They’re loans you as parents can get to pay for your children's education expenses if they are undergraduate students enrolled at least half time. You must have no adverse credit history. As is true for Stafford Loans, there are FFEL PLUS Loans and Direct PLUS Loans. PLUS Student Loans are unsubsidized.
Can I get both a Direct PLUS Loan and a FFEL PLUS Loan for my children?
You can apply for either loan but not both during the same enrollment period. If you have two children in college, one can apply for Direct PLUS Loan and the other one can apply for FFEL PLUS Loan.
Are there any borrowing requirements I have to meet for PLUS Student Loans?
Yes. To be eligible to receive a PLUS Loan, you generally will be required to pass a credit check. If you don't pass the credit check, your children might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if you should fail to do so. You might also qualify for a loan for your kids even if they don't pass the credit check if you can demonstrate that extenuating circumstances exist. Your kids must meet the general eligibility requirements for federal student financial aid. You must also meet some of these general requirements. For example, you as parents must meet citizenship requirements and may not be in default or owe a refund to any Student Financial Assistance (SFA) Program.
How can I get this loan?
You as parents who plan on borrowing the loan should submit a completed PLUS application to the financial aid office at the child's school.
How will I be paid?
For a Direct PLUS Loan, the U.S. Department of Education will send the loan funds to your kids' school. For a FFEL PLUS Loan, the loan funds will be sent to your kids' school by the lender. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be used to pay for your kids' tuition, fees, room and board, and other school charges. If any loan money remains, you will receive the amount as a check or in cash, unless they authorize it to be released to your kids or to be put in your kids' school account. Any remaining loan money must be used for your kids' education expenses.
When do I begin repaying PLUS Student Loans?
Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. You must begin repaying both principal and interest while your kids are in school.
Instead of
Plus Student Loans
, college tennis recruiting is a viable alternative if you or your kid have tennis ability.
College Tennis Recruiting
Student Loan Consolidation
Stafford Loan
Online College Degree
Bachelor Degree Online
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