Single Mom School Loans

Parent Student Loans-Help Your Children To Reach Their Goal

Parent student loans could really do a lot to ease the burden of financing a college education. Although student loans exist, these are often not enough. It’s even tougher for students to tap into other alternative financial aid for college because of their non-creditworthy status. Parent student loans could be their only hope.

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There are some options that parents could take to help cover their child’s education costs. But, the first place that they should look for parent student loans is from the government. Here, you can access low fixed interest rate loans with flexible repayment plans. One of the federal programs built for parent borrowers is the PLUS Loan.



The Federal Parent PLUS Loan is only offered to biological parents or legal guardians of a dependent undergraduate student. The interest rate for this is locked at 7.9%. Parent borrowers will have to start repaying once the funds are released. There are generally three repayment options specific for Parent PLUS Loan: standard, graduated, and extended.



To qualify, a borrower must be a parent or legal guardian of an undergraduate with a dependent status. Since this is credit-based, a parent shouldn’t have an adverse credit history. A FAFSA may or may not be required depending on the school’s policy. You can inquire about this from your child’s school financial aid office.

The amount you can borrow is equivalent to your child’s cost of attendance (COA) minus other financial awards given. So, if the COA is $8,000 and your child received a Pell Grant worth $5,500, you can only borrow exactly $2,500.  The funds will go directly to your child’s respective school. An origination fee of 3% is required plus a 1% fee for defaulted loans.

As what’s been mentioned earlier, a parent borrower shouldn’t exhibit a bad credit history to qualify. This includes overdue loan payments (more than 90 days) that took place for the last 5 years. Luckily, the credit check that’s done with a Federal PLUS Loan for Parents is not as strict as credit checks done by private lenders.

If you don’t qualify, there’s still something you can do. You can reapply, but this time with an eligible co-signer. If that doesn’t do the trick, you can check out alternative funds from private lending institutions. You can start your search from well-known lending entities, such as Sallie Mae, US Bank, and Wells Fargo.

The good thing about personal loans for school is that the money is sent directly to you. However, one of the big flaws of private parent loans is their high variable interest rates, which has a minimum rate of 3.50%. To get a better overview, try checking out the Wells Fargo Student Loan for Parents.

As you much as you want your college-bound children to be independent, it’s sometimes necessary to step in to help them pay for their education. You really don’t have to take a loan immediately. Start searching for free money first. Private parent student loans should always be your last option.