Parental Student Loans

Parents sending their child to college often face the stress of worrying about how to pay for tuition. Luckily, there are several loan options available to make college a manageable investment. Whether it is through federal or private loans, numerous options are available to help parents send their child to a university or college of their choice.

Direct PLUS Loan

The U.S. government offers a loan for parents of a dependent student called the Direct PLUS Loan. The parents and student must meet specific criteria - and in order to qualify, must fill out a Direct PLUS Loan Application and Master Promissory Note. The PLUS loan does not have a deferment period, which means that the loan repayment begins immediately upon receiving the loan. Because it is a federally funded loan, the PLUS loan has a long-term repayment period and very low interest rates. Unlike a Perkins loan or Stafford loan, they do not base PLUS loans on financial need. There are PLUS loan consolidation programs that offer fixed interest rates that are extremely low. 

Private Loans

Several organizations and private banks offer parental student loans. Some act as a liaison and alter their program to offer favorable interest rates. When shopping around for a parental student loan that the loan programs have specialized student rates so you do not end up paying the high, standard personal loan interest rates. It may be hard for some parents to obtain alternative loans if they have poor credit ratings.

For further information on parental student loans, two very good sites are, and

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