About Parent Plus loans
Parent Plus loans are loans designed for parents who wish to borrow funds to help pay for their child's college expenses, from tuition to study materials and general living costs. Unlike more conventional loans, Parent Plus loans have a low, fixed interest rate and flexible repayment terms for the borrowing parents. As the cost of college continues to rise and paying for college becomes more difficult, more and more families are turning to Parent Plus loans as a viable form of funding for their child's college education.
Benefits of Parent Plus Loans
Parent Plus loans have a number of advantages when compared to other types of loans, from borrowing limits to low interest rates. The current interest rate on Parent Plus loans is fixed at 7.9%, and parents may borrow up to the total cost of education. Additionally, the funds are sent directly to the school and immediately cover any outstanding balance on the student's bill - if the loan is greater than the outstanding balance, the remainder of the loan will be given to the borrowing parents to use as necessary. Parent Plus loans also do not require any security or collateral, and the application process is as simple as filing the FAFSA.
Applying for Parent Plus Loans
Before you apply for a Parent Plus loan, it is extremely important to read and understand the terms and conditions of the loan, from the basics of the interest rate and when repayment begins to the minute details of borrower benefits and cosigner release. You should know the precise amount you need to borrow, what your monthly payments will be, and ultimately, the total cost of your Parent Plus loan. Be sure to do your homework before you borrow - you never want to borrow more than you need, as that will only cost you more money in the end. To apply for a Parent Plus Loan, just fill the FAFSA.
Q:Are parent loans for college tuition the only way of financing education?
A:Although loans such as the Parent PLUS loan are a great way for parents to assist their children in getting the education they deserve, it is not the only way. In fact parents should always encourage students to explore scholarship and grant options first, as these do not have to be repaid. Moreover, private loans can also provide a measure of last resort.