The united states department of education offers parents and graduate students a plus loan to fund college-related expenses. For parents, this means an opportunity for them to pay for their child’s collegiate education without the hassle of taking on a second mortgage or another form of private funding. For graduates, who find themselves qualifying for less student aid once an initial bachelor’s degree is achieved, it means funding education to earn a master’s or doctorate’s degree. The following is a brief breakdown of the pros and cons associated with the plus loan.
Because the eod plus loan is a federally backed loan, it boasts a very low-interest rate. Quite typically, the plus loan features a loan rate considerably lower than the student or parent’s other financing options.
Covers College Expenses
A PLUS Loan borrower can take out the total amount needed to cover all education expenses minus any other student aid awarded to the student.
Accommodating Repayment Plans
The federal government offers several repayments plans flexible in nature in an effort to make it easier for the borrower to repay the debt.
Credit Check Needed
Unlike other EOD loan programs, the PLUS Loan does require the borrower to undergo a credit check. The borrower must have a positive credit score in order for the government to award him or her a loan.
This loan process can be a bit long and extensive.
Federal student aid is a renewable process that takes place on an annual basis. The PLUS Loan program is no different. Students and parents taking out a PLUS Loan must reapply through the FAFSA each year in January. Once the student is out of college, he or she (or the parent) can opt to have the multiple borrowings consolidated into a lump sum for payoff.