PLUS loans

plus loansFor parents with acceptable credit who need help paying for their child’s college, parent PLUS Loans can be a very good option. PLUS Loans are federal loans and currently have a fixed interest rate of 7.21%. These loans can help a parent make college more affordable by spreading out college costs over at least 10 years. Smart use of PLUS Loans can help parents avoid depleting long-term financial resources, such as home equity or retirement plans, in order to pay for college.

How much can you borrow?

PLUS Loans are available to cover up to the full cost of attendance, minus any financial aid received by the student. For example, if college costs $20,000/yr and the student has been offered a financial aid award of $12,000, the parent is eligible to request a PLUS Loan of up to the amount of $8,000 for that year.

Key Facts about PLUS Loans

The Scholarship Center

How to Apply

Students whose parents are denied a PLUS Loan will be eligible for additional unsubsidized Stafford Loans. Also, private loans can be used if PLUS Loans aren’t an option, or if you find that the borrowing limits on federal loans aren’t enough to cover your college costs.

 

Federal Loan Topics