Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.
By now, undergraduates are making their final preparations for school: deciding on class schedules, arranging housing and finalizing financial aid awards. While some lucky students have received enough aid and grants to see them through the semester or maybe even the school year, others may be taking on additional work hours to help pay for their college expenses.
Some undergraduate students who have already used all their available resources like grants, student loans, scholarships and federal work-study may still find themselves falling short on their college expenses. These students may want to ask mom or dad to consider taking out a credit-based Federal Parent Loan for Undergraduate Students, otherwise known as PLUS loans.
A PLUS loan may be a good way for parents to meet their child’s educational financing needs, according to NextStudent, a leading Phoenix-based education funding company.�
The Ins and Outs for Mom and Dad
With a PLUS loan, parents can borrow money for dependent children who are undergraduates enrolled in college at least half time. Either parent can apply, and because the PLUS program isn’t a need-based aid program, it doesn’t matter how much mom and dad make. But parents do have to fill out a Free Application for Federal Student Aid (FAFSA) and meet the following eligibility requirements:
- Creditworthy
- Not in default on any federal student loans
- U.S. citizen or permanent resident
- Have a valid Social Security number
The Ins and Outs for Students
For their parents to be able to take out a parent PLUS loan with NextStudent, students must also meet certain guidelines. Children of parent PLUS applicants need to be undergraduates attending a Federal Family Education Loan Program (FFELP) school, have their Student Aid Report and meet the following eligibility requirements:
- Under 24 years old
- Single with no dependents
- Not in the military or a military veteran
- Not a ward of the court
- U.S. citizen or permanent resident
- Have a valid Social Security number
One of the great things about PLUS loans is that the amount a parent qualifies for is based on the entire cost of attendance, which isn’t just tuition and room and board, but also includes a reasonable allowance for other education-related expenses, like student fees, books and educational supplies. Each year, qualifying parents can take out up to the PLUS limit, which is the cost of attendance minus any other financial aid their child receives.
Some parents who take out PLUS loans may find there’s money left over after tuition and on-campus housing payments are met, which they can use to cover their children’s other educational expenses. With a Federal PLUS Loan from NextStudent, both parents and children can have the peace of mind that comes from knowing that college, plus those extra college-related expenses, are taken care of.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.
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