subject: Federal Direct Plus Loans [print this page] For families that struggle to fund their childrens academic costs, supplemental borrowing is an important resource to choose. It is particularly helpful to those families, which are not eligible for the need-based financial assistance or those qualifying but whose financial needs are much greater than the aid package.
Federal Direct PLUS Loans are considered one of the extremely trustworthy sources of supplemental borrowing. Actually, the PLUS (Parent Loan for Undergrad Students), is a federally-backed student loan for parents disbursing for their childs undergrad education.
PLUS loan benefits - The benefits provided by this loan comprise:
Federal backing, guaranteeing stability
Non-need based, but only based upon credit rating
Doesn't need collateral
Favorable student loan terms, comprising a fixed rate of interest
Diversity of repayment plans
Lacking penalty for any early repayment
Cut rate of interest by 0.25 percent for electronic repayment
Can be consolidated with any other federal student loan
Interest can be tax allowable under Hope Education Tax Credits
Fast disbursement of finances, typically within the first 2 weeks of the college semester.
Eligibility demands - Families looking for assistance from PLUS loans should meet the following requirements (one at least):
Have atypical expenses above the normal student expense budgets
Don't qualify for another federal financial help
Show fiscal need beyond financial help already given
Search to borrow significant part or all of the Expected Family Contribution
Maximual loan amount - In addition to this families are able to get up to the whole cost of undergrad education minus another financial help. Besides, the price of education is defined in accordance with fees, tuition, room & board, supplies, laboratory expenses, travel as well as many others.
Rate of interest - This loan provides a fixed rate of interest of 8.5 percent for each loan taken after 2006.
