Parent PLUS Loan Eligibility

Understanding Parent PLUS loan eligibility requirements can allow you to see if it is a means of paying for college for you or not. The basic requirements include that the student must be a US citizen. They also have to be enrolled in a accredited college of higher education at least part time. A PLUS loan can cover the entire cost of the schooling, but you can’t borrow any more than that. Understanding the cost of the program can help you to determine how much you need to borrow.

Parent PLUS Loan Eligibility Requirements

For those considered to be a dependent, a parent has to complete the paperwork as part of PLUS loan eligibility. A dependent is categorized as anyone that is under 24 years of age, who isn’t married, and who has no dependent children of their own. They do so on the behalf of the student. There parents have to have good credit too. Otherwise, they will be required to have a student loan co-signer with good credit sign the promissory note as well on behalf of the student. If such a co-signer can’t be found and the parents don’t have good credit, the application will be denied.

Students that are considered to be independent may apply for a PLUS loan on their own. These are students over 24 years of age, those who are married, and those that have at least one dependent child of their own. They are old enough to do so, but they must have good credit in order to do so. If they don’t, then they can also look at the scenario of adding a co-signer to the loan as well for them to meet the eligibility criteria.

PLUS Loans and Credit Eligibility

Many people worry about their credit rating these days due to the economy. It can make you feel better to know that the expected credit rating has been reduced dramatically from what it was only 1 ½ years ago. The economy has been tough of everyone, and this is realized. So don’t think you automatically won’t get the Parent PLUS loan if your credit isn’t perfect.

Many of the schools and lenders require the student or their parents to apply for other forms of Federal financial aid first. This typically means filling out the FAFSA forms to see if they qualify for any Pell Grants. The reason for this is to reduce the amount of money that someone is going to need to borrow through the PLUS loan program.

Parent PLUS Loan Eligibility and Other Loan Defaults

Individuals that apply for a PLUS loan can’t be in default with any other loans out there. There are programs that can help to get this taken out of the way. For example, to get the loan out of default, the individual could ask for a consolidation loan to reduce the amount that they pay per month. They can also ask for deferment which will put their payments in the future and they won’t have to pay them right now.

Individuals can’t owe any refund for any Federal educational grant as part of PLUS loan eligibility. There are various circumstances when someone may have to repay such funds. If you fall into such a category, then you will be contacted by the financial lender. This doesn’t occur very often though so it isn’t something to worry a great deal about.

Needed PLUS Loan Eligibility Documents

There are certain types of documents that have to be completed as well for PLUS loan eligibility. In addition to the promissory note where the parents or the students promise to repay, there are forms that show people borrowing such funds understand the terms. An online entrance exam has to be completed that covers the interest rates and when payments are due.

This online format takes about 1 hour to complete. To login, parents or the student must have a PIN number that is associated with their FAFSA. Once the completion of the exam is done, notification will be sent to the school. They must have that on file before any funds from a lender can be disbursed into the account for the student.