Parent Plus Loan Advice
A Parent Plus Loan is particularly created for parent who wish to borrow a fund for support their child's education expenses at an university or college. Only student enrolled at least half time is entitle to apply for the loan, and there will be a credit check for the parent to determine whether they are eligible for the loan.
This loan is well known as low interest and fixed rate loan, is administered by Department of Education and guaranteed by federal government.
Here are some guides and tips to acquire the loan :-
1) Check out the eligibility of the loan before apply, such U.S. citizen, a good credit score of parent, acceptable credit history and etc.
2) Filling in and submission of a parent plus loan application and promissory note, lender may take a month to proceed the application and response to parent.
3) Parent must go through a credit check to eligible to the loan, if they failed, the only way of getting the loan is engaged a co-signer. The co-signer must holding a good credit score and history. If student defaulting the loan in future, co-signer will bear a responsibility to repay the loan.
4) Determine how much money will need to borrow from lender, in fact it is depend on cost of attendance deduct other financial aids. For instance, the total costs is $10,000, and other financial aids amounting $7000, you will get an amount of $3000 from the loan.
5) Once the loan be approved and fund obtain, borrower may start paying the interest and fees. This will helps borrower to reduce the loan amount after graduate.
6) Do not defer the payment, a late payment charge will impose to borrower once the payment defer. Plan ahead your repayment, if you are unable to repay at certain time, contact the lender formally to apply for deferment scheme.
For more student loans information, please take a look at Student Loan Guide instead of Parent Plus Loan Tips
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