Additional Information for Parents
If you are a parent with a dependent child in college, you may be eligible for a low-interest Federal Plus Loan
to help pay undergraduate college expenses. You don’t have to demonstrate financial need to take out a PLUS loan, but a credit check is required. If you are denied a PLUS loan due to poor credit, the student may be eligible for additional Unsubsidized Federal Direct loan funds. If a PLUS loan is denied, contact the college’s financial aid office and ask about additional unsubsidized funds for the student.
Borrowing or co-signing a private student loan
is a serious financial commitment. Private loans have higher interest rates and most charge fees, making them more expensive than Federal loan options. Be sure to exhaust all Federal loan eligibility before borrowing or co-signing an alternative loan.
If a private loan is needed, student borrowers may secure better terms and pricing by adding a credit worthy co-signer to their application. Always check the interest rate, fees, interest capitalization policy, repayment period, prepayment penalties and other terms and conditions of the loan before you sign or co-sign a promissory note.