Loan Information, Consolidation, and Calculators

Educational Loans For Parents

Written By: admin - Feb• 12•13

Educational loans for parents

PLUS loans, also known as the Direct Loan Program, are loans that are tailored to professional degree or graduate students who are also parents of a student that is currently an undergraduate to assist with the ever rising education expenses. The U.S. Department of education makes these loans to people by utilizing schools that are participating in the program.

The interest rate is fixed at 7.9%.

The person looking to borrow has to have good credit.

The Department of Education is the lender.

The student’s cost of attendance minus other financial aid already in play is the maximum loan amount.

Who is eligible for the loan?- You must be a professional or graduate degree student and also be currently enrolled for at least half-time. Your dependant must be an undergraduate and also enrolled half-time currently.

Where and how do I apply?- Simply fill out a FAFSA form and submit to your college’s financial aid department.

What if my credit is bad?- You can get someone with better credit to cosign for you.

Are there any hidden charges in this?- In short, yeah. There is an origination fee of 4%. Not to worry, this amount is divided into the payments and paid in proportion to the loan balance.

What else do I need to do to get this loan?- You must also fill out a Master Promissory Note and agree to the terms on paper, and sign, kind of like a backup to the loan agreement itself.

What’s the damage? (When do the payments start?)- Don’t worry, you can get the loan deferred up until 6 months after you are no longer attending at least half-time.

What if I can’t pay?- You can modify the loan payments, and even stop payments momentarily if you need to.

What if I don’t need it all, or I change my mind on career goals?- You can cancel any portion of the loan that has not been dispersed from your educational loan for parents.

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