Plus Loans Ease Student Expenses
Loans are loans your parents can take out to pay for your
education expenses if you’re a dependent undergraduate
student enrolled at least half time. Also, your parents must
have no adverse credit history. As is true for Stafford Loans,
there are FFEL PLUS Loans and Direct PLUS Loans. PLUS Loans are
Can my parents get both a
Direct PLUS Loan and a FFEL PLUS Loan for me?
can apply for either a Direct PLUS Loan or a FFEL PLUS Loan, but
not for both for you during the same enrollment period. Your
parents could, however, apply for a Direct PLUS Loan for you and
a FFEL PLUS Loan for one of your siblings, for example.
do my parents apply?
a Direct PLUS Loan, your parents must complete a Direct PLUS
Loan application and promissory note, contained in a single form
you get from your school’s financial aid office.
a FFEL PLUS Loan, your parents must complete and submit a PLUS
Loan application, available from your school, lender or your
state guaranty agency. After the school completes its portion of
the application, it must be sent to a lender for evaluation.
it’s not a requirement, parents are encouraged to have their
dependent children file a FAFSA, so their children can receive
the maximum student aid they’re eligible for.
there any borrowing requirements my parents have to meet?
generally they have to pass a credit check. If they don’t
pass, they might still be able to receive a loan if someone,
such as a relative or friend who can pass the credit check,
agrees to endorse the loan and promises to repay it if your
parents don’t. Your parents might also qualify for a loan if
they don’t pass the credit check if they can demonstrate that
extenuating circumstances exist. For them to borrow for you,
you must meet the general eligibility requirements for federal
student aid, and your parents must also meet some of these
general requirements. For example, they must meet citizenship
requirements or be eligible noncitizens and may not be in
default or owe a refund to any FSA program.
Do they need to find a
if they borrow under the Direct Loan Program, because their
lender will be the U.S. Department of Education. Your school
assists the federal government in administering the Direct
Loan Program by distributing the loan application, processing
the loan and disbursing the loan funds.
the FFEL Program, your parents will need to find a
participating lender. For help, they should contact your school
or the guaranty agency that serves your state.
school can refuse to certify your parents’ loan application,
or can certify a loan for an amount less than they would
otherwise be eligible for, if the school documents the reason
for its action and explains the reason to your parents in
writing. The school’s decision is final and cannot be
appealed to the U.S. Department of Education.
How much can my parents
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.
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