PLUS Loan Borrower Benefits
With rising tuition costs, the Parent Plus loan is a practical way to fund your child's education. While Stafford loans and other financial aid may help to cover some costs, they usually are not enough to cover what is due. The PLUS loan can be used to pay tuition and any eligible school expenses, minus any other aid the child receives.
Benefits to the Parent
While Parent PLUS Loans may not be right for every family, there are some great benefits for those who choose this option. For example, PLUS loans can provide more financial stability for students since some of the school debt is handled by the parents. For parents who want a little more control over their student's financial future, the PLUS Loan provides a solution without saddling students with too much student loan debt.
Parent PLUS Loan Benefits
The loan benefits (or incentives) PLUS Loans offer are:
- Fixed 7.21% interest rate
- 0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account
- Fund up to the cost of education minus other aid received
- Deferment and forbearance options if you experience financial difficulties
- 10 year repayment term
- Option to consolidate multiple loans into one
The primary benefit is that families can borrow federally guaranteed, low interest loans to help pay for their child's education, without needing to worry about collateral, need-based forms, or the student's ability to repay. Use our online form to request application information today!