Welcome to ParentLoan.org where you can learn specifically about the Parent Loan, which is available to parents of undergraduate and graduate dependant students. Parents can borrow additional student loans to pay for their childís post-secondary education. The Parent loan also known as the Parent Plus Loan is a special federal education loan that is offered through the Direct Loan Program. This loan is able to assist parents that donít have enough money saved to pay for their childís education or want to give their child additional spending money toward school expenses.
Parents of dependent students can take out loans to supplement their children's financial aid packages. The federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. Students that are enrolled at least half time in an eligible program at a Title IV are eligible for a Direct Parent Plus Loan. To qualify, parents must have an acceptable credit history, complete the FAFSA Application and submit a loan borrowerís agreement.
Parents that are eligible for a Parent Plus Loan will receive correspondence from their childís school financial aid office. The Parent Plus Loan will be found within the award letter and itís up to the parent to either accept of decline the offer amount. All questions should be directed towards the financial aid office, since they will be handling all financial aid disbursements and handle all financial aid package detail.
Parent PLUS loans are the financial responsibility of the parents, not the student. If the student agrees to make payments on the PLUS loan, but fails to make the payments on time, the parents will be held responsible. Any late payments or non-payments will harm the parentís credit score. Also, parent loans that go into default are the responsibility of the parent, so itís important to keep a good record on all repayments.
Starting on July 1, 2006, graduate and professional students can borrow money through the PLUS Loan program to pay for their own education. The Parent Plus Loan is made available through the Federal Direct Loan Program. Parents must complete and submit the FAFSA application to be considered for such loan. Applicants that qualify for eligible to receive a Parent Plus Loan that covers the difference between their childís financial aid package and the cost of attendance.