PLUS loans

About the Parent PLUS Loan:

Federal Parent PLUS Loans enable parents with good credit histories to borrow money with which to pay the education expenses of their children. Each child must be a dependent undergraduate student enrolled at least half time in an approved college or university.

The primary benefit of the PLUS Loan is that parents can borrow federally guaranteed low interest loans to help pay for their child's education.

A Federal PLUS Loan allows parents to borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses, travel less any other aid.

These parent loans are non-need based. Eligibility for the PLUS Loan depends on a modest credit check that determines whether the parent is in good standing on their credit. Some situations that may affect your credit score may include: being more than 90 days late on any debt or having former student loans in default, bankruptcy, foreclosure, repossession, tax lien, wage garnishment, or write-off.

 About the GradPLUS Loan:

The GradPLUS Loan is a low interest, federally backed student loan guaranteed by the U.S. Government. Like the Parent PLUS Loan, the Graduate PLUS Loan can be used to pay for the total cost of education less any aid already awarded. The Graduate PLUS Loan is also largely dependent on the borrower's credit rating and history, as opposed to the purely financial need-based Graduate Stafford Loan.

What other options should we be looking at?

Parent should consider PLUS Loan Consolidation as a way to lower their monthly payment. Learn more about consolidation in our Student Loan Consolidation Center.

Also consider Stafford Loans and private alternative student loans

Don't forget to search for scholarships and grant money.