What is the difference between a PLUS and private loan?
• are federal loans • have fixed interest rates that do not vary based on the borrower’s profile • require a very limited check for adverse credit history when you apply • allow borrowing up to the full cost of attendance, less other aidPrivate Loans for Parents (Parent-Sponsored Loans) • have variable interest rates • can be taken out in the parent’s name for their child’s educational expenses, or in the student’s name. NOTE: If a private loan is taken out in the student’s name, the student needs to have a credit history and good credit score. Otherwise, the student will need a credit-worthy co-signer for the loan. • may vary rates / fees based on the borrower’s credit profile • require a credit check when you apply You can compare the terms and features of private student loans and PLUS loans together by searching at http://www.simpletuition.com/student_loans_in_parent_name.
Related Questions
- Fall tuition is due the first week of August. How do I use private or PLUS loan funds to help pay my tuition bill if the funds are not disbursed until the week before classes begin?
- How do I determine what additional amount of funds I can borrow in a Graduate PLUS or private loan?
- What is the difference between a Federal Stafford Loan and a Private Loan?
