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What is a Parent Plus loan?

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Brad Barnett: A Parent PLUS loan is a loan that the Federal Government will allow a parent to take out on behalf of a dependent student and the dependent student is defined by the FASFA. The FASFA form will tell you whether that student is dependent. So, after we have given the student all the financial aid, we possibly can if there s still more assistance that s needed, then the parents can apply for a PLUS loan, then they have a pass a credit check. So, it's not a Give-me loan but if they qualify they can get this loan. The other side of this though, is to keep in mind that parents will begin paying on that PLUS loan while the student is in school. There maybe some options for them to put that into a forbearance or deferment until the student graduates but they need to talk to lender about that and if they do, ask them what s going to happen to the interest while they are not paying on this loan.

Expert: Brad Barnett

Brad received his Bachelor of Science degree from Southern Arkansas University, with a major in Psychology and a minor in Business. He furthered his education by graduating from the Medical College of Virginia at Virginia Commonwealth University with a Master of Science degree in Rehabilitation Counseling, specializing in Mental Health. He has been involved in the financial aid and/or rehabilitation More »