How is the Federal Parent PLUS Loan affected by a family choosing to use the Student Plus Program?
There is NO change to the underlying PLUS loan and NO impact to the origination, processing or disbursement of the funds. The Federal Direct Parent PLUS Loan used by Student Plus Program participants is no different than any other Federal Direct Parent PLUS Loan. It is important to note that while the student makes payments, the terms of the Federal Direct Parent PLUS Loan are always in effect. The student’s failure to satisfy the Student Plus Program agreement does not remove the parent’s repayment obligation on the Federal Direct Parent PLUS Loan.
Related Questions
- What is the aggregate loan limit for a dependent undergraduate student whose parent has been denied a Federal PLUS Loan but who is eligible for an additional unsubsidized Federal Stafford Loan?
- How is the Federal Parent PLUS Loan affected by a family choosing to use the Student Plus Program?
- Why wouldn families use the Federal Parent PLUS Loan without the Student Plus Program agreement?
