Parent Loans: The Ins and Outs

There is a new option out there for the parents of dependent students. If you are a parent and you’re looking for a way to add on to your student’s aid, then you can apply for one of the best new loan programs out there today. The federal Parent Loan for Undergraduate Students, which is known as the PLUS loan, allows a parent to take out financing to cover the costs of college that aren’t covered by a student’s previous student loan package. These loans are similar to other types of student loans in that they can either be provided by the government or through a private lending institution.PLUS loans are interesting in that they have a slightly higher rate than other student loans. Their fixed rate of 8.5% is not subsidized while your student is still attending college. This is different from the popular Stafford and Perkins loans, which are subsidized during the student’s tenure in school. There are also some fairly steep fees associated with the PLUS loan. If you want to secure extra financing for your student, there is a fee of 4%. This is taken out of each disbursement check.Repayment for the PLUS Parent loan begins […]

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