PLUS Loans or Parents Loans

Parents Loans

This aid is given only for parents, with an acceptable credit history and with a dependent undergraduate student enrolled half time. For a PLUS Loan there are both the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program.
     In order to get a Direct PLUS Loan, the most important is your promissory note given it by your school, and a complete application fill out by your parents. Likewise, for a FFEL PLUS Loan your parents must complete an available application from your school to be finally sent to a lender for its evaluation.

     Annually, the PLUS Loan will depend, you will receive a cost of attendance, and plus you will receive money in other financial aid; your parents can borrow up the difference between both. Once the loan has been approved, it will be send to your school, and they might require your parents.

     The rate of interest will vary according to the date. For 2007-2008, the interest in both the Direct and FFEL programs is 8.02 percent. As well, the interest will be charged from the first date of pay until the full payment. Also, besides of the interest, your parents will have to pay 4% of the loan, deducted in a proportional way each time a disbursement is made.

     The grace period is not given in this program, due to 60 days after the complete disbursement; your parents will start the payment.

     Similarly, the PLUS Loan can be discharged, as well as the payment could be postpone; but both under special circumstances and conditions.
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