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“@type”: “FAQPage”,
“mainEntity”: [{
“@type”: “Question”,
“name”: “What Are Parent PLUS Loans?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The federal Parent PLUS loan is one of several undergraduate student loans offered by the Department of Education (DOE). Families can use Parent PLUS loans to cover the cost of standard undergraduate programs and graduate programs at traditional colleges and universities.
The PLUS loan for parents is part of the William D. Ford Federal Loan (Direct Loan) Program. To receive a Parent Plus loan, parents must complete a Direct Plus Loan Master Promissory Note (Direct Plus Loan MPN) and go through an online application process. From there, you will go through an evaluation process, and the federal government will determine if you are eligible to receive the loan.”
}
},{
“@type”: “Question”,
“name”: “What Is the Interest Rate of Parent PLUS Loans?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “So, how do Parent PLUS loans work in regards to interest rates? Parent PLUS loans have a fixed interest rate, but that rate may change depending on the loan’s disbursement.
On July 1, the new rate will take effect for the next academic year. Loans disbursed between July 1, 2021, and July 1, 2022, will have an interest rate of 6.28%.
It’s important to distinguish between unsubsidized and subsidized loans. The government pays the interest that accrues for subsidized loans while your child is in school at least part-time. However, the Parent PLUS loan is unsubsidized, which means you may be responsible for the interest that accrues during the loan’s entire lifetime.”
}
},{
“@type”: “Question”,
“name”: “How Do Parent PLUS Loans Work?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Most schools require parents to submit the PLUS loan application. You can find the application online at StudentLoans.gov, but it’s important to check with your child’s school first. Some schools have different requirements and application processes you’ll need to follow.
The loan can’t be borrowed by anyone else or transferred into another person’s name, including the student you are supporting. You, the cosigner, will also be solely responsible for repaying the loan. It will not show up on your student’s credit or show on their credit history since this is not a cosigned student loan.
You can also borrow up to the total cost of your child’s expenses after financial aid. If you haven’t completed the Free Application for Federal Student Aid (FAFSA), make sure you complete the application before you apply for the Parent PLUS loan.
Through the Parent PLUS Loan, you can borrow up to your child’s total cost of attendance. It’s up to your child’s school to determine what that “total cost” figure will be.”
}
}]
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