My parents make too much! How can I get a federal loan? | 03.23.10
One question we get asked frequently from students in our financial aid forums is what to do when their parents’ income makes them ineligible for a federal Stafford loan. Many people are surprised to learn that if your parents make around $50,000 or more, or have particularly strong savings, they might earn too much to receive the need-based subsidized Stafford loans.
Fortunately, there are still a couple of federal-based options you can look into.
1. Unsubsidized Stafford loans. Among the best options for a non-need based loan, an unsubsidized loan from the government can go a long way in covering some of your tuition. One downside is the interest begins to accrue immediately upon disbursement.
2. Parent PLUS loans. PLUS loans (Parent Loans for Undergraduate Students) are loans are taken out by the parent in his or her name. The payments on these loans start right away and are not deferred if the child is still in school. These are a good way for a parent to still have a large say in the payment of their child’s education.
You also have the option to take out a private student loan. Like a subsidized Stafford loan, these loans needn’t be repaid until after graduation. Private student loans are, however, based on credit, not need.
ScholarshipPoints code: PARENT0310
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This is good to know.
Thank you – Good Information!
My parents have already done enough for me, but i know they'll still help me out. LOL, its the interest rates that bug me the most.
This doesn't apply to me, but my friend could really use this information. I will definitely relay the information.
good info to know, i think there are other options for low interest loans
For Parent PLUS loans disbursed on or after July 1, 2008, a parent can request a deferment based on their student's in-school status as long as the student's enrollment is at least half time. The deferment option was eliminated several years ago due to parent's financial situations not getting better when their PLUS debt was increasing. But they have had the option again for the last couple years. Again, they must request it…it's not an automatic. The parent should contact their lender/servicer to make the request.
In the end you will still have to pay something back
great infor
alas, a lone means we still have to pay it at some point
My Parents would never cosign:(