05.10.13 | 5 Tips for Parents Considering PLUS Loans
Parent PLUS loans are just one option for parents to help cover the costs of college. To help you decide if this is a good option for your family, take a look at the following tips on applying for and managing your Parent PLUS loan.
1. Determine if it’s the right choice for you
What I mean by this is, Parent PLUS loans are solely in the name of the parent, and cannot be transferred to the student. Before applying, make sure you know that you’ll be responsible for paying it back. If you’d rather be a cosigner on a loan in the student’s name, then your best option would be for your student to apply for a private student loan.
2. Don’t stress about credit
PLUS loans have minimal credit requirements when compared with private loans. The check does not take credit score into account, and only looks back 5 years to determine if there are any adverse credit issues during that time.
If you did have an issue during that time, don’t fret! You have the ability to appeal a declined PLUS loan if you have extenuating circumstances. For more on what constitutes an extenuating circumstance, read A Parent’s Credit and PLUS Loans.