Family Support is Always Welcome!

Federal Parent Loans for Undergraduate Students, or PLUS loans, are an excellent alternative to conventional secured loans for parents who want to help pay for their child’s college expenses. Interest rates are as low as 6.25%! This is especially beneficial for parents who don’t own their home or have little equity available on their current house. But with a federal PLUS loan, even parents with little or no home equity can get a federally sponsored student loan for their child at an interest rate lower than some of the most competitive home equity loans or home equity lines of credit.

Other Advantages of Applying for a Federal PLUS Student Loan

In addition to interest rates as low as 6.25%, parents who take out a federal PLUS loan to help cover the cost of their student’s college education can borrow up to 100% of their child’s educational need. This not only covers tuition, but may include the cost of text books, room, board, transportation and other living expenses. PLUS loans are available year round, so parents can apply for a PLUS loan at any time. PLUS loan borrowers are eligible for federal loan consolidation and in certain cases their interest may even be tax deductible.

Applying for a Federal PLUS Student Loan is Simple

Applying for a federal PLUS student loan couldn’t be simpler. All you need to do is complete the application once. As long as your student continues at the same school and completes a FAFSA each year, your signed mast promissory note is good for ten years. And with an instant pre-approval process in place at most lending institutions, there’s no reason why you can’t get funding for your student’s college education immediately. When that is all said and done you can then look into graduate student loans.