PLUS Loans are Loans for Parents
PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. PLUS Loans are available through the Direct Loan and FFELP programs. A different loan than the Private.
Are there any borrowing requirements my parents have to meet?
Yes. To be eligible to receive a PLUS Loan, your parents will be required to pass a credit check. If they don't meet the credit requirements, they are still eligible if someone with good credit co signs, promising to repay it if your parents should fail to repay. Your parents could also qualify for a PLUS loan if they can demonstrate that extenuating circumstances exist. You must meet the general eligibility requirements for federal student financial aid. For example, your parents must meet National City requirements and may not be in any kind of loan default.
How much can my parents borrow?
The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $6,000 and you receive $4,000 in other financial aid, your parents could borrow up to--but no more than--$2,000.
For much more specific detail on PLUS loans try calling the Department of Education at 1-800-4-FEDAID.