The federal PLUS Loan— Parent Loans for Undergraduate Students, is a smart and easy way for parents to pay for their child’s college education. The PLUS loan is not based on financial need or income, so most people qualify for the loan. Since it is a federal loan, the interest rate is as low as 8.5 percent. These loans help families meet college costs, beyond tuition and fees, at below-market rates and with generous terms. Parents can borrow up to 100 percent of the total college costs, less any financial aid received.
According to NextStudent, the Phoenix-based premier education funding company, a little-known fact about PLUS loans is that parents can consolidate multiple PLUS loans into a single loan, even for different children. So, if a parent has three children in college at one time and takes out a PLUS loan to cover college costs for each child, the parent can consolidate those three loans into one easy-to-manage loan.
Here’s the key: Loans are identified by Social Security number. Therefore, the same parent must take out all three loans. The bonus is, if that same parent still has three children with three PLUS loans in school the next year, that parent can consolidate the three new PLUS loans into the initial consolidation, making for one loan, at an extended term and a lower monthly payment.
NextStudent Offers Excellent PLUS Loan Benefit Package
When parents qualify for a PLUS loan through NextStudent, they get more than money, they get personalized service and incentive features:
* Cash Rebate of 3 percent at Repayment: on the remaining principal balance after the first 12 months of consecutive on-time payments
* Interest Rate Reduction of 2 percent: after the first 48 months of consecutive on-time payments
* Interest Rate Reduction of .25 percent: for using Auto-Debit for repayment
* Generous Borrowing Limits: Borrow up to the entire cost of education (less any federal aid), including books, supplies, and even a computer!
* Simple Application Process with E-Signature: When borrowers apply online, NextStudent can qualify an application within minutes. Also available is our Credit Solutions program for borrowers who initially are denied due to unresolved credit issues.
* PLUS Credit Resolution Team: NextStudent’s team has an 87 percent success rate for qualifying borrowers.
* Flexibility: PLUS Loans have various repayment options including
deferred repayment while students are enrolled in school at least half time. The loans are eligible for consolidation and there never are prepayment penalties.
It’s Easy to Renew a NextStudent PLUS Loan
Parents can take out a PLUS loan for their child each year that the child attends college. During the initial application for a PLUS loan, Master Promissory Notes (MPN) are completed and good for 10 years, provided that the student remains at the same school, is current in his or her FAFSA filing, and the parent is credit-approved. To renew the PLUS loan the parent must contact the school’s financial aid office and submit a PLUS loan renewal form, http://www.nextstudent.com/PDF_Applications/PLUS-Serial.pdf.
Parent borrowers must remind the school that their lender is NextStudent, Lender ID 834051. However, it is important to remember that the “renewed” PLUS loan essentially is a “new” loan. It is separate from the previously acquired PLUS loans but does qualify for consolidation.
It is easy for parents to help their children pay for college with NextStudent’s PLUS Loan Program. First-rate benefits and incentives make paying for college much more manageable so that parents can help their children receive the college education of their dreams.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.
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