Parent PLUS loans work best for parents with steady sources of income, but who struggle to pay for their child’s education out of pocket. (Getty Images) Parent PLUS loans can be a good alternative to private student loans because they offer more flexible repayment options.What is a PLUS loan for college?
Parent Loan for Undergraduate Students, or PLUS, originated in 1980 10, and are federal loans that parents can take out to cover their child's college costs. The parent, not the student, is responsible for repaying the PLUS loan.What happens to Parent PLUS loans when the parent dies?
Parent PLUS loans are forgiven if either the student or the parent borrower dies. Private loans are still collectible in the event of death, although some lenders have forgiveness policies for death or disability. The main advantage private student loans offer is that they tend to come at lower interest rates than their federal counterparts.How can I get a PLUS loan for my child?
First, you have to fill out the Free Application for Federal Student Aid, or FAFSA, for the academic year when you want to borrow. You can then apply for a PLUS loan. Parent PLUS loan eligibility requires that you: Are the parent of a dependent undergraduate student enrolled at least half-time at an eligible school