What does Federal Direct PLUS loan mean?
Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.
What is different about federal loan plus?
Direct PLUS loans are federal loans that graduate or professional degree students or parents of dependent undergraduate students can use to help pay for education expenses. Direct PLUS loans have a fixed interest rate and are not subsidized, which means that interest accrues while the student is enrolled in school.
What does the PLUS loan stand for?
Parent Loan for Undergraduate Students
PLUS stands for Parent Loan for Undergraduate Students. Like federal student loans, PLUS loans are offered through the U.S. Department of Education’s William D. Ford Federal Direct Loan Program.
Who is legally obligated to repay a PLUS loan?
Only the parent borrower is required to pay back a Parent PLUS Loan, as only the parent signed the master promissory note for the Parent PLUS Loan. The student is not responsible for repaying a Parent PLUS Loan. They’re under no legal obligation to do so.
Do Parent PLUS loans get forgiven?
A federal parent PLUS loan may be eligible for forgiveness through an income-contingent repayment plan or through the Public Service Loan Forgiveness program. There are also options for parents who took out a loan from a private lender. A parent PLUS loan, or direct PLUS loan, is a form of federal student aid.
Do Parent PLUS loans have to be paid back immediately?
Parent PLUS loans need to be repaid right away unless they are deferred. When you take out a parent PLUS loan, a direct loan granted by the U.S. Department of Education to parents, you’re expected to begin repayment immediately after the loan is disbursement.
What is the maximum amount of a Direct PLUS loan?
|Max Loan Length||30 years, depending on amount borrowed and repayment plan chosen|
|Max Loan Amount||$2,625 to $8,500|
|Fees||Up to 4% of the loan|
Do PLUS loans require a credit check?
Unlike other federal student loans, there is a “credit check” requirement for both parent and graduate/professional PLUS loans. The “credit check” basically requires that PLUS loan borrowers show that they do not have adverse credit histories.
Do parent PLUS loans get forgiven?
What is the income limit for fafsa 2020?
For the 2020-2021 cycle, if you’re a dependent student and your family has a combined income of $26,000 or less, your expected contribution to college costs would automatically be zero. The same goes if you (as an independent student) and your spouse earn no more than $26,000 annually.
Can Grad PLUS loans be forgiven?
Yes. Direct PLUS Loans are made to graduate or professional students and to parents of dependent undergraduate students. Like other Direct Loans, Direct PLUS Loans are eligible for PSLF.