Need A Full Student Loan With An Easy Repayment Plan?
A Parent PLUS loan is available as a student loan for parents of undergraduate dependent children. For independent children, the parents will not have the eligibility for a Parent PLUS loan. Of course, you must be a US citizen or national, a US permanent resident or an eligible non-citizen, and a credit check is required.
Benefits of the Parent PLUS Student Loan
There are many Sallie Mae benefits to the suitable borrowers of Parent PLUS
student loans. This loan offered so you can save money and flexible repayment options are also available. The loan is not required to be repaid as long as the student is in school and up to 60 months after that.
You can easily manage a Parent PLUS loan online 24 hours a day seven days a week and there is no prepayment penalty. While there are no income or collateral requirements there is credit check.
To Improve Credit Rating
There is a free confidential counseling service available to Parent PLUS borrow worse. It’s called Sallie Mae PLUS Success. Specialized counselors work with the parents to resolve credit issues so they can become eligible for a Parent PLUS student loan. And if they’re not eligible using their own credit, they may obtain a credit worthy endorser.
On this type of loan the interest may be tax deductible. There are applications online where you can have the results of the approval process with an instant credit decision for the parent plus loan
Options for Repayment of the Parent PLUS Student Loan
There are several options for repaying the Parent PLUS student loan. You can do the standard repayment where you’re paying on the principle and the interest payments every month for 10 years. That plan has the lowest interest rate. You can use graduated repayment so you might reduce payments in the early years. And then increase, but you’re still paying it off within a ten year period. This can issue a higher total loan cost than the standard repayment.
With the income sensitive repayment plan payments are based on a percentage of your gross income so you have to re-apply every year for this plan because
your income may change. With income sensitive repayment you have a higher total
loan costs also than with standard repayment.
An extended payment is perfect if you have a high school student loan debt.
You can be eligible for up to 25 years repayment term and the choice of standard or graduate payments to keep the payments affordable with an extended repayment. Of course the total cost of the loan is more than what the standard repayment would be.
Student Loan Consolidation
With a student loan consolidation you can combine all of your loans into a new one. This is so you will have a single monthly payment and a fixed interest rate. This can substantially lower your monthly payments that it well result in a higher total loan cost.
Filed under: Financial, Student Loans