PLUS Loan - Why Choose a PLUS Loan?

Vanessa McHooley


PLUS Loan - Why Choose a PLUS Loan?

A PLUS Loan can be your ticket into college, but it really has more to do with your parents than it has to do with you. What exactly are PLUS Loans? Well, basically, a PLUS Loan is a loan that must be obtained by your parents in order to pay off your educational tuition. If you are a dependent of your parents and a future undergraduate student at any college or university within the country, a Federal PLUS Loan might be the right choice for your family. Additionally, your parent’s credit history must be in good standing in order to receive a PLUS Loan for you.



Why A PLUS Loan Works

Why should you choose a PLUS Loan when going into college though? Aren’t there better options for you? Often times, college students have little to no credit history, and they themselves cannot afford to put a loan onto their credit history. Scholarships can only take most students so far, and parents/students usually cannot bring in enough income to pay off a college tuition, especially at most private universities. When this becomes the case, a PLUS Loan offers the best alternative to the student taking out a loan, as parents can use their established credit to help students through college without a hitch.



Supplementing Your Aid

The best part about a Federal PLUS Loan though is the fact that it helps you to cover any expenses at school that are not already being covered, For instance, if your yearly tuition at school is $10,000, and you receive $5000 a year through some other source of financial aid, a PLUS Loan enables you to pay the other $5000 without worry. Additionally, applying for a PLUS Loan is as simple as filling out your FAFSA form, which can be obtained at your school’s financial aid office, and sending it in. PLUS Loans are dispensed directly to your school and leave you with no worries during the school year. If you are thinking of options for paying your way through college, think about applying for a PLUS Loan.



This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about PLUS Loans at http://www.NextStudent.com .


About the author:
My goal is to help every student succeed - education is one of the most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.