Nov 14, PLUS Loans - Federal Loans for Parents
Posted by ~Ray @ 2007-12-15 17:58:32
PLUS loans differ from federal student loans made to students. Parents can borrow much more — usually enough to cover gaps in the cost of education. However there is no alter period and payments mouth immediately.
Parents need to be aware that THEY are responsible for repayment on these loans not the student. This is not a 'cosigner' loan where the student has equal accountability. The parents have signed the master promissory say to pay and if they do not do so it is their credit rating that suffers not the students.
It is advisable to consider 4 year payments rather than 1 year payments. What sounds like a "manageable" debt load of $200 a month in freshman year can suddenly mushroom to $800 a month by the time four years undergo been funded through loans and can put a serious strain on the parents.
Under new legislation graduate students are eligible to acquire these loans in their own names. These loans undergo the same interest rates and terms of Parent loans.[ADVERTHERE]Related article:
http://www.student-loans-digest.com/plus-loans.html
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