Plus Consolidation (All About PLUS Consolidation)
PLUS loans are taken out by parents of higher education students to supplement the financial aid package offered and cover all aspects of education. PLUS loans can be used for tuition, books, residence, meal plans, etc and are a great way to insure against unexpected education expenses.
PLUS loans can be repaid immediately upon disbursement and can be consolidated whenever you wish. There are aspects of federal PLUS loans that are similar to and different from the other types of federal loans.
Similarities
- They are secured by the US government
- The are available under the Direct Student loan program
- They are available through private lenders
- They can be consolidated through various federal consolidation loan programs
Differences
- They are taken out by the parent, rather than the student
- They have higher interest rates
- They require a credit check for the parent
- They offer a few repayment options
- They are immediately due for repayment
