PLUS loans are meant to help parents and students who are having a hard time paying the "Family Contribution".
Who is Eligible for PLUS Loans?
PLUS loans are available to parents of undergraduate students, regardless of need and income level. Similar loans are available to graduate students and to students who will not be receiving financial help from their parents.
The Cost of PLUS Loans
The interest rate on PLUS loans is a bit higher than the rates on Stafford Loans and Perkins Loans, with the cap averaging somewhere around 9 percent. Payments will begin as soon as the loan is issued, but borrowers can take up to ten years to pay the loan off.
Applying for PLUS Loans
PLUS loans can be obtained from many different commercial banks and online lenders. Borrowers will be subject to a credit check prior to approval.
PLUS Loans – Parent Loans for Undergraduates Students
Using PLUS Loans to Pay for College
By Karen Schweitzer, About.com
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