Parent Information

The parent(s) of a dependent student is required to supply income and household information on the Free Application for Federal Student Aid (FAFSA). This information assists in determining the student’s eligibility for different types of aid including grants and federal student loans. In addition, the parent must sign the application.

Parents may complete the application online or by paper. Completing the application online requires a signature with a PIN (Personal Identification Number). (Click here to apply for a PIN)

Dependent students are often able to borrow a limited amount of federal student loans. In order to help pay educational costs, a parent may also apply for a (PLUS) loan. PLUS loan approval decisions are credit based and the credit check will appear on your credit report as an inquiry. If approved, you must sign a promissory note in order for the loan to be processed. If denied, your child may have an opportunity to borrow additional federal student loan funds.

• To learn more about or apply for a PLUS loan, click here.

Parents with good or exceptional credit may wish to consider a different loan option. Private loans are also credit based; the interest rates are determined by the credit worthiness of the borrower and/or co-borrower. Some of the general differences are listed as follows:

Repayment

• PLUS loans go into repayment within 60 days after the loan has been fully disbursed.
• PLUS loan borrowers often have forbearance availability in the event that the borrower is not able to make scheduled payments.
• Private loans often offer an after graduation grace period.

Co-Borrower Obligations

• Responsibility to repay a PLUS loan can never be transferred to another individual.
• Some private loans offer a co-borrower release option. The co-borrower can asked to be released from the loan obligation after a specified number of payments have been made on time.

Interest Rates

• The maximum interest rate on a federal PLUS loan is 9.0%.
• The interest rate on a private loan may be higher due to the borrower's and/or co-borrower's credit worthiness.

Living Expense Funds

• Students who wish to borrow living expenses immediately can often be accommodated by utilizing a private loan.
• PLUS loans may also provide living expenses to the student. However, credit balances created by a PLUS loan are disbursed to the parent. In addition, it often takes longer to receive than if borrowed via a private loan.

Loan Management

• Both private and PLUS loan lenders are often able to provide good customer service and the ability for the borrower to manage their loans online.