Parent college loan

2007-05-02 10:04:19

( Family )



Parent plus loans are beneficial to families that have several dependent college students. This is because the parent plus loans gives families the opportunity to send all their children to school without worrying about interest rates. Parent plus loans are actually federally funded so this kind of financial aid is given to all deserving parents who want to send their children to school.

However, you should note that there are also requirements you have to meet in order to be eligible for the parent plus loans. Parent college loan need to have their credit standing verified and the parent must be living in the state where this kind of loan is available. Meeting all these requirements is essential in securing the future of your child and your entire family. As you can see, there are a lot of benefits of parent college loans. Other advantages include flexible repayment scheme, collateral is not required, and no penalty charges. In addition, the interest rate you have to pay for this loan is tax deductible so when you look into it, you are not really paying an interest amount at all.

It is no wonder then that a lot of students are sent to college by their parents by availing of this service. There are also many types of repayment schemes you can choose from so it is very easy for you have a good credit standing. For example, standard repayment usually allows you to pay the parent college loan for up to ten years. But you will have to pay the both principal and interest amount when you choose the standard repayment scheme every month. Another type of repayment scheme is called income sensitive repayment. In this scheme, you are required to pay a percentage based on your income annually. Income sensitive scheme is very convenient but you should note that you may end up paying more in the long run when you use this scheme.


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