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Considering Parent Loans For Helping Your Kids With Their College Expenses


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Attending college is not always easy. Monthly expenses are multiplied, and tuition and other college's fees must be paid. If your kids are already in college, or they will be soon, they have probably already applied for any kind of financial aid, either Federal or private such as student credit cards or student loans.

Student credit cards are a good option to afford general expenses, as books, food or clothing are. They are also a good source of fast money in case of an emergency occurs. But they are not the best solution if our kids mayor concern are about tuition or college fees. In these cases, they will probably need a mayor amount of money that could come from a student loan.

What Are Parent Loans?

Parent loans or Parent Loans For Undergraduate Students (PLUS) are offered to dependent student's parents. They can be used in combination with other financial aid or, to afford the whole education expenses.

When To Consider Parent Loans?

Federal student loans are always a good option when talking about academic expenses, the inconvenient they have, is that these loans are calculated within a range of annual expense set by the selected school, minus any other financial aid your kids may already asked for, so many times the amount to borrow is less than the amount which is really needed. A Parent loan, may be borrowed to cover the difference between a Federal loan and your kids’ uncovered expenses.

Other option if your kids are not interested in a Federal loan is to consider a private student loan. These loans are offered by private financial institution, and your kids will need a good credit score to be eligible. If their credit history is not so good or they still do not have any credit records, you can help them either as a co-signer for the private student loan or by resorting to a Parent loan.

What Kinds Of Parent Loans Are Available?

PLUS loans as student loans are granted through the Federal Government. There are also Parent Loans granted by private lenders that work the same as PLUS loans.

Requirements To Apply

As any other loan, either Federal or private parent loans require a good credit history to be eligible. If you want to apply for a PLUS loan, you will also need to fill the PLUS loan application and you will be also required to sign a promissory note. If you are willing to apply for a private parent loan, other documentation may be required depending on the lender.

How Much Can You Borrow?

In a Plus loan, you may borrow up to but no more than the estimated annual education cost minus any other financial aid your kids may already have. For example, the estimated annual education cost is around $5000 and your kid has a Federal student loan worth in $3000, you may borrow up to $2000 yearly with a PLUS loan.

If you apply for a private parent loan, as in any other loan the loan limits are based in your credit score.

Loan Repayment

Generally, a PLUS loan repayment starts within the next sixty days the loan has been fully disbursed. That means that you have to pay the loan while your kids are in college. Private loan for parents offer different repayment options. Depending on the lender repayment can start after a longer period, but this may have higher interests. If you chose to be a co-signer for your kids’ private student loan, repayment will start in this case, after the graduation, this implies a longer period to plan the repayment but also may have as well as private loan for parents, higher interests.

Jessica Peterson is a Personal Loan Consultant with more than twenty years of experience.For more information about Personal Loans for Bad Credit People, Guaranteed Credit Cards, Unsecured Loans, Fresh Start Loans, Debt Consolidation, Student Loans and others please visit


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