What is Parent Plus Loan? Parent Plus loans are known as federal loans that can be taken by parents of dependent undergraduate students. This is to help pay costs that haven’t been covered by the student’s financial aid. In other words, this loan is a type of loan taken by parents to cover their children’s educational expenses. However, If you are taking this loan, you should know that this type of loan has fixed interest rates for the lifetime of the loan.
Taking a Parent Loan is safe but still needs to be paid right away unless they are deferred. So once you get this loan, you ought to start your payment as soon as the loan is disbursed. And after 25 years of repayment, a Parent loan is forgiven. So in order for you to qualify for this loan, you have to convert your plus loan into a federal direct loan. This is however done by consolidating your student debt. You can now be forgiven after 25 years of repayment.
Are There Any Disadvantages?
If you take Parent Direct plus loans, it is okay but there are disadvantages. One of the disadvantages is that it has a higher interest rate than other student loans one can apply for. Aside from that, Parents plus loners are also required to pay a loan fee. And paying a loan fee could make the loan more expensive than when a loan is gotten from a private lender. So it is not advisable to go for a parent plus loan as it could be really expensive and hard to pay back after collecting the loan.
How Much Money Can We Get From Parent Plus Loans?
The maximum amount that can be gotten from a Parent plus a loan is the cost of your child’s attendance minus the other financial aid. Let’s take, for example, you have a child who attends college and his school fees in about $8,000 and then he already has $6,000 in other financial aid. Instead of borrowing the whole $8,000 again, you can just get a loan of the balance to complete your child fees and pay up your debt with the required interest later.
What Are The Advantages Of Getting A Parent Plus Loan?
The advantage of getting a parent plus loan is that you get to pay the education expenses up to the cost of attendance for your child’s schooling. This is however minus the other financial assistance. And you should know that the interest on this loan is changed during all periods. With this, you can afford your child’s tuition fees, room and board fees, and all the important educational payments you have to cover for your child.
Companies that Offer Parent Plus Loans
Different companies offer this kind of loan. And some of the best of these companies would be listed for you. So you wouldn’t go to the wrong money lenders to obtain parent plus loans from them. So if you do not have an idea about this type of loan and you do not know where to visit to get them, here are some of the parent plus loan companies below that offer both private and loans;
- Federal Parent Plus Loan.
- Sallie Mae Private Student Loan.
- Advantage Education Loan Parent Loan.
- RISLA Private Student Loan.
- ISL Private Student Loan.
- Brazos Parent Loan.
- College Ave Parent Student Loan.
- InvestED Student Loan.
- SoFi Private Student Loan.
- ELFI Private Student Loan.
You can choose from any of these and apply for a loan to cover your children’s tuition fees. And then pay up later.