Student Loans - PLUS LOANS (con’t)
A PLUS Loan sounds like just what I need for my child.
What are the eligibility requirements for PLUS Loans?
PLUS applicants must meet the general eligibility requirements
for the federal student financial aid.
If a parent is borrowing on behalf of a dependent undergraduate student,
the student must also meet the following general eligibility requirements:
The PLUS applicant and the student must:
- Be a United States citizen or eligible noncitizen
- Not be in default on a federal student loan.
- Not owe a refund on a federal education grant.
PLUS some additional requirements…
A PLUS Loan appliant must not have an adverse credit history.
A credit check of your credit report will be conducted.
(We will be reporting on how to improve your credit history in future posts).
A PLUS Loan applicant who has an adverse credit history
still may be able to receive a loan by documenting existing
extenuating circumstances.
OR
By obtaining an endorser who does not have an adverse credit history.
An endorser is someone who agrees to repay the loan if the borrower
fails to make the payments.
Do you need to find a lender for a PLUS Loan?
For a Direct PLUS Loan - No.
The U.S. Department of Education is the lender.
Your school assists in administering the Direct Loan Program by:
- Distributing the loan application
- Processing the loan
- Disbursing the loan funds.
For a FFEL Program - Yes.
You will need to find a participating lender.
TIP -
For help locating a participating lender, you should contact
your school or the guaranty agency that serves your state.
For the address and telephone number of your state guaranty agency,
you can contact the Federal Student Aid Information Center at:
1 (800) 4 FED AID [1 (800) 433-3243]
Cut your monthly student loan payment by up to 60%
credit history, Credit Report, Direct PLUS Loan, FFEL, financial aid, guaranty agency, Plus loans
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