Attending college is not always trouble-free. Monthly expenditures are increased, and tuition and other college fees must be paid. If your kids are already in college, or they will be in the near future, they have most likely already applied for any kind of financial aid, either Federal or private like student credit cards or student loans.
Having said that, with federal aid, often the amount been awarded is less than the amount actually needed. Parent loan or a PLUS loan can help here. It can be borrowed to provide for the difference between a Federal loan and your kids’ uncovered expenditures.
What are parent loans?
Parent loans are offered to dependent student’s parents. They can be used in combination with other financial aid or, to bear the expense of the whole college education.
Requirements to apply
As with any other loan, college loans for parents require an up to the mark credit history to be eligible. If you want to apply for a PLUS loan, you will need to fill out the application and sign a promissory note. If you are in favor to apply for a private parent loan, other documentation may be required depending on the lender.
How much can you borrow?
With a parent loan, you may borrow up to the estimated amount of what is the tuition fee minus any other financial aid your kids may already have. For example, if the estimated annual education cost is around $5000 and your kid has a Federal student loan worth $3000, you may borrow up to $2000 yearly with a parent loan.