| College expenses are high; there is little argument | | | | write-off. |
| over that. Students and parents of students often | | | | The college of choice may require additional loan |
| need financial help in order to get into and | | | | applications. For this reason, parents should check |
| subsequently get through the years of education | | | | with your school's financial aid office. |
| that leads to an advanced degree. Thankfully, there | | | | As of July 1, 2006, the interest rate on the PLUS |
| is a somewhat new student loan program available | | | | Loan was set at 8.5 percent. The PLUS loans do not |
| that help out with these costs. | | | | require any collateral to be placed by the parents. In |
| The Federal Parent PLUS Loans can help those | | | | addition, the interest that is paid on the loan may be |
| parents with good credit histories to borrow money. | | | | tax deductible. It should be noted that the interest |
| This money can be used to help pay the education | | | | rate on these loans can and will vary over time, so |
| expenses of their children. Each student-child must be | | | | parents should investigate the latest news concerning |
| a dependent undergraduate student enrolled in an | | | | interest rates before assuming any posted rate is |
| approved university or college, for at least half time | | | | correct. |
| in order to qualify for the loan. | | | | There are some restrictions on the PLUS loans. For |
| The most useful benefit of the PLUS Loan is that | | | | instance, the annual limit on a PLUS Loan is equal to |
| parents can borrow federally guaranteed, low-interest | | | | your cost of attendance, minus any other financial aid |
| student loans in order to pay for the child's college | | | | that is received from other programs. For example, if |
| education. Unlike many other loans, the PLUS Loan | | | | the annual cost of attendance to a school is $8,000 |
| program lets parents borrow the total cost of | | | | and the student will receive $5,000 in other financial |
| undergraduate education to include tuition, supplies, | | | | aid, the parents of the student would be able to |
| room and board, books, lab expenses, and even | | | | borrow up to, but no more than, $3,000. |
| some travel costs. | | | | There are also certain restrictions and requirements |
| Also, unlike many other student loans that are based | | | | concerning the way the funds are to be disbursed. |
| on "need", these loans are non-need based. Eligibility is | | | | Much of the disbursement rules that apply to a |
| dependent on a regular credit check that determines | | | | particular loan will be directed by the particular school. |
| whether the parent has an adverse credit history. | | | | In order to get the most recent issues concerning |
| An adverse credit history is defined as being more | | | | how the money will be sent and to whom it will be |
| than 90 days late on any debt or having any Title IV | | | | sent, parents and students should visit with the |
| debt (including a debt due to grant overpayment) | | | | financial aid office of the intended university. |
| within the past five years subjected to default | | | | Students and parents who wish to learn more about |
| determination, bankruptcy discharge, foreclosure, | | | | this loan program can visit the PLUS loan website |
| repossession, tax lien, wage garnishment, or | | | | where more detailed information is located. |