What is a PLUS loan?
PLUS Loans allow parents with good credit to borrow monies to pay school expenses. This is applicable to dependent undergraduate students who are enrolled at least half time. Graduate PLUS loans are also available for students enrolled in a Masters Degree Program. Graduate students with good credit may apply on their own for the Graduate PLUS loan.
PLUS stands for Parent Loans for Undergraduate Students. It is a federal student loan that can be used as a supplement to a Stafford Loan. As of 2006, a new type of PLUS loan was made available for graduate students. Parent PLUS Loans are federal loans in which the parent is the borrower for a dependent student. This loan is only available to parents of undergraduate students. Graduate PLUS loans are federal loans designed specifically for graduate students who have already reached the limit in Stafford loans and need additional funds.
Available to parents of dependent undergraduate students, the PLUS Loan is a smart educational financing solution. You may qualify for a PLUS Loan even if your financial assets limit your eligibility for other loans. And, you can borrow for each dependent undergraduate student who is enrolled at least half time at an eligible two-or four-year accredited college, university, or proprietary school. Effective July 1, 2006, PLUS loans are also available to eligible graduate and professional students. For more information on the Grad PLUS program, click here. Funded by private lenders, guaranteed by the Federal government and administered by the college or university your child attends, the PLUS Loan is one of the most competitive student loan products currently offered to finance an undergraduate college education.
