When do I apply for a plus loan?
On One Hand: When The Loan is NeededParents of college students apply for Federal PLUS loans when the student needs money for tuition, books and other school-related expenses. Federal PLUS loans will pay up to 100 percent of the student’s expenses and is the responsibility of the parent to repay it.On the Other: Exhaust Other Options FirstBefore a parent applies for a PLUS loan, the student should apply for grants and scholarships through their college or university by completing the Free Application for Financial Student Aid (FAFSA.) Obtaining grants and scholarships, which don’t have to be repaid, could significantly reduce the amount needed to borrow through the PLUS loan program.Bottom LineThree to six months before the beginning of the academic year, parents should have their children complete the FAFSA form to obtain grant and scholarship money.
