The Student PLUS loan is an alternative program with a low cost to a private traditional loan for students. This program is created by Graduate Leverage to give a response to the uncertainty conditions of the current economy. The turmoil in the economic situation made students to face the uncertainty of study by the increasing price of interest rates and fees of private student loans which are more difficult to obtain. The Student PLUS loan assists the students to access a better utilization for the lower cost of Federal Parent PLUS loan. Just like any other private loan, this Student PLUS loan is mainly purposed for those who are eager to meet the costs of educations which are not covered by grants, scholarships, or other financial aids.
There are some benefits of the Student PLUS loan program, such as:
The interests’ rate of this loan is now fixed. It is around 7.9% by using the Federal Direct Parent PLUS loan. The payment should be made by students following their graduations. Another benefit is that the score of parents or students is not used to determine the rate of interests for Student PLUS loan program.
The Student PLUS loan program needs dedicated participated of the parents as the borrower of the Federal Direct PLUS loan. For you who are thinking of signing up for a private loan and want to use your parents as a cosigner, you must consider the Student PLUS program as an option for lower costs. Also for you who are parents who likely to make your children as the students in making the payment for the loan, this Student PLUS loan program is the best option for you.
The details of the Student PLUS loan Program is described into two sectors, which are the eligibility and the repayment of the loan. For the eligibility of Student PLUS loan program, the student must enroll in a Direct Lending School. Because the Student PLUS loan program is the underlying loan of the Federal Direct Parent PLUS loan, the credit of the parents should be standing good. The students who sign up for this loan must be at least 24 years old.
The repayment for this loan comes in three ways. First, the student pays following their graduation. Secondly, the payments can be delayed until 6 months after graduation. Last, the payment process facilitated by the Graduate Leverage, in order to protect students against risks of delinquency.