PLUS Loans are Loans for Parents
PLUS Loans enable parents with good credit histories
to borrow to pay the education expenses of each child
who is a dependent undergraduate student enrolled at
least half time. PLUS Loans are available through
the Direct Loan and FFELP programs. A different loan
than the Private.
Are there any borrowing requirements my parents have
to meet?
Yes. To be eligible to receive a PLUS Loan, your
parents will be required to pass a
credit check. If they don't meet the credit
requirements, they are still eligible if someone with
good credit co signs,
promising to repay it if your parents should fail to
repay. Your parents could also qualify for a PLUS loan if
they can demonstrate that extenuating circumstances
exist. You must meet the general eligibility
requirements for federal student financial aid. For
example, your parents must meet National City requirements
and may not be in any kind of loan default.
How much can my parents borrow?
The yearly limit on a PLUS Loan is equal to your cost
of attendance minus any other financial aid you receive.
For example, if your cost of attendance is $6,000 and
you receive $4,000 in other financial aid, your parents
could borrow up to--but no more than--$2,000.
For much more specific detail on PLUS loans try
calling the Department of Education at 1-800-4-FEDAID.
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