Direct Student Loan, Private student loans
An important thing to remember when applying for a federal Direct Loan is, as a student, the debt is your responsibility – not your parents. Approximately 90 percent of the school loan programs offered by the United States Department of Education (EOD) are designed for students. With that said, the EOD does offer a Federal PLUS Loan for parents to borrow money for their dependent’s tuition. This, however, is a separate loan program with different qualification requirements than the Direct Student Loan program.This rule also applies to students under the age of 18 seeking a direct student loan from the EOD. In typical loan cases, individuals under 17-years-old or younger are subject to the “defense of infancy.” The regulation disallows minors to enter into a financial contract before they are 18. In regards to the Higher Education Act, that ultimately provides students the access to Direct student loans, the defense of infancy is not applicable. Therefore, a student under 18 is eligible to apply for and receive Direct Student Loan funds. Additionally, the EOD provides loans for students without the need of a co-signer.With that said, parents or relatives wanting to assist the student with paying off his or her school loan can ask the student to have the billing statements forwarded to their home. While it is not the responsibility of the relative, and the individual receiving the bill is in no way obligated to pay it, he or she can also opt to have the payment electronically deducted from a checking or savings account.Students should also be aware that if a parent or relative decides to quit paying the bill or makes a late payment, in the end it is the borrower’s responsibility.Unlike Direct Student Loans, borrowers with private loans may require the use of an adult co-signer. If this is the case, the co-signer is also held responsible for loan repayment. More information on private student loans can be found at www.student-loans.net __________________________________________________________
Visit a Chase private student loan site. _____________________________________________________________________
