Plus Loans for Parents
If you're a parent who is worried about how you're going to pay for your child's college education, then you should consider all of your options for financial aid. Sometimes, student loans that your child qualifies for are not enough and you may need to explore some other options for loans. One such loan that parents often get when trying to send their kids to college is a parents plus loan. These loans are designed only for parents or legal guardians of a student.
If you are thinking about choosing a plus loan for your student's college education, then you should consider the ramifications of doing so. One thing that you need to keep in mind before you choose one of these loans is that it's going to be in your name. Even after your student graduates, you won't be able to transfer the loan to him or her. You'll need to keep it in your name, so you'll have to be prepared to do this before you agree to take on such a loan. Once you've considered this carefully, then you can make your decision.
Qualifying for a Loan
If you want to get a parent plus loan to help your student with his or her college expenses, then you need to be able to qualify for it. Not everyone can get a loan like this, so you're going to need to have a good credit score. You don't need to have a perfect credit score, but you do need to have one that is not adverse. If you have any payments that are more than 90 days old, then you may not be able to qualify for this type of loan.
Common Questions Parents Should Consider
One question that you might have when you are considering getting a parent plus loan is when you have to start paying it back. As a parent, you're going to have the option of starting to pay it back while your child is still in school. However, you can also wait until your student graduates from college if this is more convenient for you. If you do choose to defer your payments until after your student graduates, then you will have to pay interest on it once it has been fully disbursed. You can choose to pay for this interest monthly or you can also defer this with the principle.
If you are going to apply for a parents plus loan, you need to understand that you will need to apply for the loan each year that your student needs the extra money. While you might assume that you can apply for all four years at once, this is not the case. You need to reapply each year because your circumstances might have changed. If your credit score is different, then you may not be able to get the loan as before. Make sure that you keep your credit in top shape.
Dealing with Application Denial
If you've applied for plus loans for parents and have been denied, you shouldn't get too discouraged. You can always apply for these loans again the next year after your credit score has improved. Also, you can explore the option of getting some private loans as well. Either way, you can find a way to get the funds that you need to help put your student through school. Sit down with your child and a financial counselor and see what other options might be option for you to consider as a means of funding.
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