Are you looking for a way to assist your child in paying for college? The parent PLUS loan is a student loan offered by the United States Department of Education to parents of undergraduate students who meet certain criteria. Here is how to go about the parent plus loan application.
Parent PLUS Loans
PLUS loans are federal loans available to qualifying graduate students and parents of dependent undergraduate students to assist with educational costs.
Direct PLUS Loans are available to qualifying borrowers who have completed a FAFSA application.
Quick Overview of Direct Plus Loans
The U.S. Department of Education is the lender.
The borrower must not have an adverse credit history.
The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.
Parent Plus Loan Eligibility
Just like all federal student loans, parent PLUS loans have certain eligibility criteria:
You must be the biological or adoptive parent of an undergraduate student who is enrolled at least half-time at a qualifying school.
You must not have an adverse credit history.
You must be a U.S. citizen or eligible noncitizen.
Learn More about How to Apply for a Parent PLUS Loan
Steps to Apply for a Parent PLUS Loan
There are several steps to apply for a parent plus loan. They are listed below as follows:
1. Determine if you’re eligible for the Parent PLUS loan
Before you (the borrower) can qualify for a Parent PLUS loan, you must meet three requirements:
When applying for a Parent PLUS loan, it is the parent who fills out the application.
You must be the biological or adoptive parent of a dependent undergraduate student enrolled at least half-time at a participating school.
A stepparent may be eligible for this loan in certain circumstances. It is the parent who is liable for repayment, not the student.
The Department of Education accepts applications for this type of loan from parents.
You cannot have an “adverse credit history.” While there is no requirement for a minimum credit score, loan defaults, bankruptcies, tax liens, and other negative marks on your credit report may disqualify you.
You may still be qualified for a Parent PLUS loan if you can add a co-signer (also known as an endorser) who has no bad credit or if you can show that extenuating circumstances caused your credit troubles.
The borrower and the student must both meet the federal student financial aid eligibility requirements.
The student must be enrolled in an eligible program and school, and the borrower must be a U.S. citizen or eligible noncitizen with a Social Security number.
2. Have your Child Fill out the FAFSA
Although the parent will apply for a Parent PLUS loan, the student must first complete the Free Application for Federal Student Aid (FAFSA).
Then your school will guide you through the Direct PLUS Loan application process. Remember, if you don’t fill out the FAFSA, you won’t be eligible for a Parent PLUS loan.
3. Calculate How Much you Want to Borrow
You can borrow the total cost of your child’s attendance, minus any financial aid or scholarships received. Tuition, fees, room and board, books, supplies, transportation, and loan fees are all included.
Expenses such as a personal computer, child care, study abroad charges, and disability-related expenses may also be eligible. The entire fee varies depending on the school.
Note that you can always borrow more in the future if you need. Do your best to only borrow what you need.
Check Out What to Avoid in your Parent PLUS Application
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