Parent Plus Loans Explained
Parent plus loans are a great way for you to assist your children in getting through college. An education can equate to a mountain of student debt, and if you want to help your children bear that burden, a parent plus loan is a great way to do it.
What are Parent Plus Loans?
Parent plus loans are federally guaranteed loans that allow parents to assist in managing the academic debt of their children. Rather than being owed by the student, these loans are owed by the parents. The loans are much easier to get than both private loans and need based financial aid.
If your family does not qualify for the full amount of financial aid based on need, or if the amount of need is greater than the limits on such grants and loans, a parent plus loan can help take up the slack. Parent plus loans are not based on need at all, and there are no limits other than the proven cost of your child’s education.
This cost includes more than tuition. It covers books, room and board, and even travel. Any predictable expenses necessary to allow your child to obtain their education is covered by the loan.
Does Not Require a Good Credit Score, But…
Parent plus loans are much easier to get than private loans because they do not require a credit score or income verification. Instead, qualification for the loan is granted based on your actual credit history. As long as you do not have defaulted accounts or revolving accounts more than ninety days past due, you will likely qualify for parent plus loans.
Additionally, co-signers may be used to obtain parent plus loans, whereas most private loans will not be granted based on the credit of another. You also have the added benefit of a fixed interest rate of 8.5 percent. These lenient terms are available because the loan is guaranteed by the government.
Consolidating student loans is a way to reduce student loan payments, lower interest rates and to make student debt easier to manage. Here at Consolidating Student Loans, you'll find a wealth of information related to students loans and consolidation. Thanks for stopping by, and make sure to grab our RSS feed to stay up-to-date with the latest student loan news.
