– Parent Plus Loan Application –
Are you looking for a way to assist your child in paying for college? The parent PLUS loan is a student loan offered by the United States Department of Education to parents of undergraduate students who meet certain criteria. Here is how to go about the parent plus loan application.
Parent PLUS Loans
PLUS loans are federal loans available to qualifying graduate students and parents of dependent undergraduate students to assist with educational costs.
Direct PLUS Loans are available to qualifying borrowers who have completed a FAFSA application.
Quick Overview of Direct Plus Loans
The U.S. Department of Education is the lender.
The borrower must not have an adverse credit history.
The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.
Parent Plus Loan Eligibility
Just like all federal student loans, parent PLUS loans have certain eligibility criteria:
You must be the biological or adoptive parent of an undergraduate student who is enrolled at least half-time at a qualifying school.
You must not have an adverse credit history.
You must be a U.S. citizen or eligible noncitizen.
How to Apply for a Parent PLUS Loan
The parent, not the student, is the one who files for the parent PLUS loan and handles its repayment. The Department of Education accepts applications for this type of loan from parents.
Steps to Apply for a Parent PLUS Loan
There are several steps to apply for a parent plus loan. They are listed below as follows:
1. Determine if you’re eligible for the Parent PLUS loan
Before you (the borrower) can qualify for a Parent PLUS loan, you must meet three requirements:
When applying for a Parent PLUS loan, it is the parent who fills out the application.
You must be the biological or adoptive parent of a dependent undergraduate student enrolled at least half-time at a participating school.
A stepparent may be eligible for this loan in certain circumstances. It is the parent who is liable for repayment, not the student.
The Department of Education accepts applications for this type of loan from parents.
You cannot have an “adverse credit history.” While there is no requirement for a minimum credit score, loan defaults, bankruptcies, tax liens, and other negative marks on your credit report may disqualify you.
You may still be qualified for a Parent PLUS loan if you can add a co-signer (also known as an endorser) who has no bad credit or if you can show that extenuating circumstances caused your credit troubles.
The borrower and the student must both meet the federal student financial aid eligibility requirements.
The student must be enrolled in an eligible program and school, and the borrower must be a U.S. citizen or eligible noncitizen with a Social Security number.
2. Have your Child Fill out the FAFSA
Although the parent will apply for a Parent PLUS loan, the student must first complete the Free Application for Federal Student Aid (FAFSA).
Then your school will guide you through the Direct PLUS Loan application process. Remember, if you don’t fill out the FAFSA, you won’t be eligible for a Parent PLUS loan.
3. Calculate How Much you Want to Borrow
You can borrow the total cost of your child’s attendance, minus any financial aid or scholarships received. Tuition, fees, room and board, books, supplies, transportation, and loan fees are all included.
Expenses such as a personal computer, child care, study abroad charges, and disability-related expenses may also be eligible. The entire fee varies depending on the school.
Note that you can always borrow more in the future if you need. Do your best to only borrow what you need.
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4. Apply for the Loan through the Department of Education Website
Parent PLUS loan applications are available online at the Department of Education’s website. Your information will be given to your child’s school, which will decide whether you are eligible for a Parent PLUS loan.
The application takes roughly 20 minutes to complete on average.
Before you begin the online parent PLUS application process, have this information available:
1. Your verified FSA ID.
2. The school’s name.
3. Your student’s information.
4. Your personal information.
5. Your employer’s information.
5. Sign the Master Promissory Note
You will be required to sign the Master Promissory Note before receiving your loan. It is important to note that this is a legal document. You agree to all the loan terms when you sign it.
Though you’ll have to apply for a new parent PLUS loan each year, the Master Promissory Note you sign may allow you to receive many loans. They can last up to ten years sometimes.
6. Learn about Repayment Options and Refinancing
After monies are disbursed to your child’s school, payback for a parent PLUS loan begins.
While repayment is not automatically deferred while your child is in school, you can request a deferment while your child is enrolled at least half-time at an eligible institution and for six months afterward by submitting a separate application.
You can apply for a private student loan to refinance your parent’s PLUS loan.
When you refinance, you have the option of keeping the loan in your name or transferring it to your child sometimes.
What to Avoid in your Parent PLUS Application
When filling out the parent PLUS application, make sure that you have all the correct information and fully understand the eligibility requirements. Here are a few key things to avoid when applying:
Do not submit an application until your child has completed the FAFSA. Although the parent must complete the parent PLUS loan application, the youngster must first complete the FAFSA.
If you are not the parent of an eligible college student, do not apply.
A parent PLUS loan is only available to biological or adoptive parents. Grandparents are not eligible. In some situations, though, a stepparent may be eligible.
Before applying, remove any credit freezes you may have. If your credit file has been frozen for security reasons, you must lift the freezes with each credit bureau before submitting your application. Your application will not be processed if you do not comply.
Use the proper procedure for your child’s school. Most institutions use the Department of Education’s online application.
Some schools, however, follow a different procedure. Select the relevant school when filling out the application, and the website will tell you how to apply.
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Frequently Asked Questions (FAQs)
Outlined Below are the Most Popular Questions about Parent Plus Application:
1. Will it Hurt my Credit if I Apply for the FAFSA?
FAFSA won’t affect your credit scores. The bad news: You’ll have to complete an online FAFSA form every year you need aid.
2. Can I use my child’s SSN to apply for a credit card?
Technically, yes you can. Depending on the age and what status they have reported to any credit bureaus, of course you can.
3. Should I take out a Private Student Loan or a Parent Plus Loan?
If you need more money to pay for school, choose the loan type — Parent PLUS or private — suited to your family’s situation.
Parent PLUS Loans are easier to get, but private loans might offer lower interest rates and fees. By researching both options, you can find the one that better meets your needs.
4. How do I Complete the FAFSA for College Next Year?
If you need financial aid to pay for college, complete the Free Application for Federal Student Aid (FAFSA®) form.
The 2022–2022 FAFSA form is now available. Fill it out as soon as possible on or after Oct. 1 at the official government site, fafsa.gov.
5. How does a Federal Student Loan Work?
A student loan is a money borrowed from the government or a private lender in order to pay for college.
The loan has to be paid back later, along with the interest that builds up over time. The money can usually be used for tuition, room and board, books, or other fees.
6. How to Stay in Control of my Student Loans?
5 ways to take control of your student loan payments
Refinance for a lower interest rate
Make extra payments
Enroll in autopay
Consider income-driven repayment plans
Check if you qualify for student loan forgiveness
7. Are loans Considered Financial Aid?
Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
8. Is College Financial aid a Loan?
The FAFSA application is not a loan. It is simply an application that you fill out in order to determine your eligibility for receiving a federal loan.
There are three main types of financial aid that a student may be deemed eligible for after completing a FAFSA application.
9. What Can I do if my Parents refused to Apply for a PLUS Loan?
Here are four options that families can consider after a Parent PLUS loan denial:
Borrow additional unsubsidized loans.
File an appeal.
Consider alternatives to taking on additional debt.
Enlist an endorser or co-signer.
10. How Long does Processing take?
Because of the value of PLUS applications at peak times (particularly summer and the start of the Fall term), PLUS loans can take 4 weeks for processing and for the loan to be posted on the student’s financial aid summary.
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StudentsandScholarship Team.
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