What if the parent is not able or willing to borrow the parent loan? Are there any other loans for the student?
If the parent applies for and is denied the Federal PLUS Loan, the student is then eligible for an additional unsubsidized Federal Stafford Loan. Freshmen and sophomores can borrow up to $4,000 and juniors and seniors can borrow up to $5,000 in addition to the original amounts that they received (see question 1 above). There are also ‘alternative student loans’ that are typically loans of last resort. Most of these loans require a co-signer. Alternative loans are not federal loans but are private educational loans offered through various lenders. The interest rates are variable and are higher than the Federal Stafford and Federal PLUS loans. Most of the time the student does not begin repayment until after he/she graduates but the student is responsible for the interest from the date of disbursement and the interest is capitalized, or added to the loan principal. Taylor University offers a list of lender options for this program as well and we are able to process loans through these le
Related Questions
- As a parent, if I borrow a Direct Parent PLUS Loan for my student, how can I get funds from that for my student’s books and/or living expenses? Can the refund be sent directly to my student?
- If a students single parent is disabled and not able to work will the student still qualify for a federal loan or are there other sources of funding for a student in this situation?
- I am a parent and plan to borrow a Parent PLUS Loan for my student for the Summer Session 2010 and/or the 2010 - 2011 academic year. What should I do this year?
