PLUS Loans

Paying for College
1

<p>I have about 2000 in remaining fees for this upcoming semester.</p>

<p>My Parents absolutely do not have the credit scores to qualify for a PLUS loan, and I have no other options in terms of co-signers for a loan.</p>

<p>I have heard if they are denied a PLUS loan on credit based reasons, that I can take out an additional 2000 dollar loan from the feds? How does this work? Are there any other routes I can take?</p>

<p>Thanks for your input.</p>

2

<p>If your parents apply for & are turned down for a PLUS loan, you can borrow up to another $4000 (fr/soph) or $5000 (jr/sr) in unsubsidized loans. If your cost of attendance doesn’t leave room for the whole $4k/5k, you can only borrow as much as you have room for (COA-all aid).</p>

<p>Contact your financial aid office for instructions on how to apply for the PLUS & how to get the unsub loan if the PLUS is denied.</p>

<p>This is by far your best bet. The other option is a private education loan.</p>

3

<p>Your parents have to apply for a PLUS loan. If they are denied then you are eligible for an additional $4000 in unsubsidized Stafford loans. Talk to your FA office about how to proceed if they are turned down.</p>

4

<p>I’m sorry to be a nuisance, but my parents would probably want to look at something on the web that clearly states that.</p>

<p>I am not sure if they’re embarrassed of their low credit, which isn’t necessarily anything they truly could have avoided, or just leery of the entire situation, but if you have a link I’d appreciate it :)</p>

<p>Thank you so much.</p>

5

<p>[Student</a> Aid on the Web](<a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp]Student”>http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp)</p>

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<p>The criteria for getting a PLUS loan may not be as strict as for private loans so they may find they can get one.</p>

6

<p>Even if they get it they couldn’t afford it, so it may be best if they are turned down.</p>

<p>Thank you.</p>

7

<p>Yes, once they’re turned down, you get to borrow $4k more.</p>

8

<p>If for some reason they are approved, they can cancel the loan … if they don’t sign the master promissory note, it won’t pay out.</p>

<p>If they ARE approved, your federal aid options are exhausted (if they don’t want to borrow the PLUS). In that case, you will have to find a private lender who will lend to you.</p>

9

<p>Ok, is there anyway we can apply for the PLUS online?</p>

10

<p>[PLUS</a> Loans - Federal Parent PLUS Loans for Undergraduate Students](<a href=“Parent Student Loans Hub - Articles, FAQ, and Applications | Edvisors”>http://www.parentplusloan.com/)</p>

<p>It says here you can apply online.</p>

<p><a href=“Parent Student Loans Hub - Articles, FAQ, and Applications | Edvisors”>Parent Student Loans Hub - Articles, FAQ, and Applications | Edvisors;

11

<p>The reason I ask is because I don’t know if those are the legitimate federal sites or not?</p>

12

<p>One more chance?</p>

<p>Keep in mind, University of Michigan Ann Arbor if that makes a difference.</p>

13

<p>There is now an additional Stafford Loan for students who have subsidized STafford loans. It is $2000 and unsubsidized. You can pay or defer the interest until you graduate. You just need to see financial aid and your parents don’t need to apply for a plus loan for this.</p>

14

<p>Where do I apply for that?</p>

<p>Either option works…</p>

15

<p>How much Stafford loan do you already have? I was assuming you already have the maximum allowed ($5500 for a freshman).</p>

16

<p>swimcat…</p>

<p>Are the links I provided above to apply online legit or not? The OP’s parents want to know. </p>

<p>Thanks :)</p>

17

<p>No idea. We have only had Stafford loans.</p>

<p><a href=“http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/typesofFSA_loans_plus.htm[/url]”>http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/typesofFSA_loans_plus.htm&lt;/a&gt;&lt;/p&gt;

<p>If the school is a direct lender (we have one in a school that is and one in a school that is not) then I believe the application would be through the school. If not then I would suggest asking the school for a list of their preferred lenders. You don’t have to use the list but it gives you a place to start.</p>

18

<p>I think Michigan is a direct lender, after looking around a bit more today.</p>

<p>I have 5500 in staffords already.</p>

19

<p>Then you already have the maximum (assuming you are a freshman). The $2000 mentioned by Justamom is already included in the maximum $5500.</p>

<p>If your school is a direct lender then you should talk to them about how your parents can apply for the PLUS. Or they may have the information on their web site.</p>

20

<p>I work at a DL school. We require our parents to accept the award offer online AND to fill out a paper application that is returned to the school. PLUS requires a credit check, so we want the actual parent signature. Also, many of our students accept all of their loans without regard to what they are or how much it will cost to pay them back. We don’t think it would be good to have a student accept a $14,000 PLUS loan without the parent knowing … and have it pay out.</p>