PLUS Loans for Parents
BY MARK ALLEN, FinancialAidFinder
After you have exhausted all of your other possibilities for your college expenses, your parents may be able to help you by getting a PLUS college student loan. These loans, which are guaranteed by the government, have fixed interest rates and you can get all or part of your education’s needs through it. Another benefit of a PLUS loan is that a graduate student can get one for his or her own education.
The government does not pay the interest on PLUS loans, as is true with the Stafford subsidized loans. Although the interest rate is set at 8.5%, the loan charges interest at a rate of only 4% while the student is still in school. If a parent is rejected for a PLUS college student loan, then the student is most likely eligible for an increased amount toward a Stafford loan.
