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How to Get a Parent PLUS Loan

With so many different options for college funding these days, you may not know about the Parent PLUS loan option. These are specifically given to the legal parents of undergraduate students who need more money to pay for their degree program. Students cannot apply for these themselves, and they are not available to grandparents, temporary guardians, foster parents, or anyone else. If you are a parent of a college hopeful or current student, explore the possibilities of this unique loan option to find the money you need to pay for tuition and other expenses.

What Is the Parent PLUS Loan Program?

This source of college money is available from the federal government if you fill out the Free Application for Federal Student Aid (FAFSA) form and fulfill necessary qualifications. As stated above, it is only eligible for parents of new or returning undergraduate students. Other criteria include:

·         The student must be enrolled in part- or full-time classes.·         Income-related and legal federal aid qualifications·         No adverse credit history (although a low FICO score is allowed)
You can get some idea about how much you may be eligible for at the Parent PLUS Loan Calculator. However, this is just an estimation, and the final decision after filling out the FAFSA and actual application may differ.

Six Steps to Receiving a Parent PLUS Loan

The process for getting approval for this type of federal student loan is pretty much the same as any other provided financial aid. Follow these simple steps to see if you qualify and get approval for money to help your son or daughter achieve their degree program dreams.

1 – Fill Out the FAFSA – The Free Application for Federal Student Aid is a necessary step in getting any type of federal student loan or grant. Make sure you fill this out during the correct time for the following school year.

2 – Determine Parental Eligibility – In order to qualify for this loan, you must be a legal parent with an enrolled dependent who meets federal loan rules and has no delinquent credit marks.

3 – How Much Can You Get? – Figure out how much you need and want to borrow based on your child's tuition and related educational costs. You can frequently get help with this question from the school's financial aid office.

4 – Pick a Loan Amount – Decide to borrow as much as possible or a specific loan amount based on your child's individual needs.

5 – Fill Out the Application Completely – Fill out the entire loan forms with accurate and complete information. This includes information about you, the student, your financial situation, employment status and income, the terms of the loan itself, and more.

6 – Sign the Parent PLUS Promissory Note – If you are eligible to receive a Parent PLUS loan, the financial aid office at the college or university will help guide you through the rest of the process. Part of it is signing a Master Promissory Note online. This is essentially a loan agreement that states you will pay the loan back.