Parent Loan for Undergraduate Students
If you do not have enough Financial Aid to cover your college expenses, your parents may choose to take out a PLUS loan. This is not a guaranteed loan. A credit check is done by the lender to see if the parent is eligible. If the parent is not eligible, the student may then apply for an additional Unsubsidized loan, normally offered to Independent students.
The parent must begin making payments on the PLUS loan within 60 days of the last disbursement of the loan funds.
Many lenders offer a PLUS loan pre-approval process that is simple and quick. Some lenders will let the parent call in or fax in the information required for the pre-approval process. The PLUS pre-approval Credit Request allows the lender to determine the credit worthiness of a potential PLUS borrower before the parent goes through all of the steps to complete a PLUS Loan Application. After determining the credit worthiness, most lenders will then e-mail, fax or mail the results to the school Financial Aid Office immediately.
