The plus student loan is a parent loan. The plus loan comes as parent plus loan and graduation plus loan. It is a non need based loan. The parent plus loan is a federal loan for the parent. The parents with good credit score can borrow the loan for their children who are dependent on them and are enrolled in a college or university.

Eligibility for Plus student loans

• The child should be dependent undergraduate.
• Child should be enrolled in the approved college or university.
• Parent should have a good credit history. If you have a history of paying your debts late by more than ninety days or have a history of bankruptcy, write off, tax lien or foreclosure, then you cannot apply for the loan.

The amount that is sanctioned is calculated by deducting the aid received from the total cost of education. Suppose your total cost of education is $5000 and you are receiving an aid of $1000, then your loan amount will be calculated by deducting $1000 from $5000. This will give you $4000. Thus under this type of loan your parent can borrow up to $4000.

You can use this loan amount to finance your tuition fees, spend it on stationeries or pay your hostel fees. You can use the amount for your education.

The grad plus loan is also a low interest loan with similar nature like the federal plus loan. Both the loans are guaranteed by the federal government. Plus loan consolidation is also available at low interest rates, so that you can consolidate all your debts and lower your monthly installments.

The interest rate on the loan is 8.5%. This rate is a fixed rate and applies to whole life of the loan. This is an unsecured loan and thus you don’t have to place property as collateral.

Benefits of plus loan

1. The interest rate is low and fixed. Hence this rate is not affected by the fluctuations in the market.
2. You can borrow the total cost of the education which includes tuition fees, hostel and mess fees, expenses on stationeries and lab expenses.
3. As it is a non need based loan only thing that is required is a good credit score. Regular credit check are carried so as to ascertain that parent do not have a bad credit history.

You can find the detail information about the plus loans by visiting the approved colleges and universities. You can find out the details of how the money will be sanctioned and who will get the money by visiting the financial aid office in these colleges.