PLUS Parent Loans
PLUS Parent Loans are loans that your parent(s) may be eligible for to help pay for your schooling, as long as you are enrolled at least half-time at a school in the program.
Your parents will have to pass a credit check or, if they have bad credit, get someone to sign for them. If approved, you can then borrow enough to cover all education related expenses minus the aid you already receive.
The money will be sent directly to your school to cover your bills, such as tuition, room and board, etc. If there is money left over, it is either sent to your parent(s), or if they have given permission, is sent to you. It must be used only for expenses related to your education.
The current interest rates are either 7.9% or 8.5% depending on which type of PLUS loan you choose, and it starts as soon as the first payment is made to you. Once the entire loan has been sent to you, your parents are expected to begin making payments within 60 days.