How to Understand a Parent PLUS Loan

The value of a college education is indefinable. The cost, on the other hand, is easily expressed in dollars and cents. Loans, grants and work-study help students pay for their education. The following are the steps on how to understand a parent PLUS loan.

Instructions

    • 1

      Apply for a Parent PLUS loan at a participating bank or credit union. This loan is between you and the lending institution.

    • 2

      Show that you have a good credit rating and have a dependent undergraduate student attending classes at least half-time.

    • 3

      Receive an amount up to the cost of attendance minus any other financial aid the student is receiving.

    • 4

      Start repayment 60 days after the final loan disbursement for the period of enrollment. There is no grace period.

    • 5

      Accept a variable interest rate capped at 9 percent. Interest begins accruing after the first disbursement of funds.

Learnify Hub © www.0685.com All Rights Reserved