What loans are available for parents of college students?
Here are five excellent options for parent student loans, both federal and private:
- Parent PLUS loan.
- Citizens Bank Student Loan for Parents.
- College Ave Parent Loan.
- Sallie Mae Parent Loan.
- Education Loan Finance (ELFI) Parent Loan.
Can parents get a student loan for their child?
Parent PLUS loans are federal student loans that are issued to parents. Parents looking to borrow money for their child’s education can also look to private loans offered by banks and online lenders. Private loans generally don’t come with fees, unlike federal parent PLUS loans.
How do student loans work for parents?
How Do Parent PLUS Loans Work? Parent PLUS loans have a fixed interest rate, and the borrower pays an origination fee for each loan. Parent PLUS loans are not subsidized, so interest begins to accrue on the outstanding loan balance as soon as funds are disbursed and continues to accrue even if the loan is in deferment.
Do parents need good credit for student loans?
Under the eligibility requirements, the loan applicant cannot have an adverse credit history. Parents may not be eligible for student loans if they have bad credit. A borrower has an adverse credit history if: Their credit report includes total debt of $2,085 or more that is at least 90 days delinquency.
How does my daughter get a loan for college?
No matter what, fill out the FAFSA form. The FAFSA is a prerequisite for a student to get a federal student loan. If the student is a dependent student, parental information is required on the form. Signing the FAFSA does not obligate the parent to borrow or to repay their child’s federal student loans.
What is a parent PLUS loans?
Direct PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.
How much can parents borrow for college?
1. You can borrow as much as you need. Unlike other types of federal student loans, Parent PLUS Loans have virtually no limits when it comes to borrowing. You can borrow up to the cost of attendance minus any other financial aid received.
How do most parents pay for college?
Most families pay for college using some combination of savings, income and financial aid. Some financial aid, like grants and scholarships, doesn’t need to be repaid. Financial aid can also come in the form of loans — money you have to repay.