Parent PLUS loans can be a great way to help your child finance their education, but what if you want to transfer the loan to the student? Here’s how.
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The Parent PLUS Loan is a federal loan that allows parents to help pay for their child’s education. Parent PLUS Loans have fixed interest rates and can be used to cover the cost of tuition, fees, room and board, books and supplies, and other educational expenses. Parent PLUS Loans are not need-based, which means that parents can borrow the full amount of the loan regardless of their income.
In order to apply for a Parent PLUS Loan, parents must first complete a Free Application for Federal Student Aid (FAFSA). Once the FAFSA has been completed, parents will need to complete a PLUS Loan Application.parents can borrow up to the full cost of their child’s education minus any other financial aid that the child is receiving.
Once the parent has been approved for the loan, the money will be sent directly to the school. The school will then apply the money to the student’s account and disburse any remaining funds to the student. If the parent wants to transfer the loan to the student, they will need to contact their loan servicer and request a Direct Consolidation Loan.
What is a Parent PLUS Loan?
A Parent PLUS Loan is a federal student loan available to the parents of dependent undergraduate students. PLUS Loans help pay for education expenses up to the cost of attendance minus any other financial aid the student receives.
The parent borrower is fully responsible for repaying the loan and may choose any repayment plan offered by the U.S. Department of Education. If the parent borrower dies or becomes totally and permanently disabled, the loan will be discharged.
How to Apply for a Parent PLUS Loan
If you’re a parent of a dependent undergraduate student, you can apply for a Parent PLUS Loan to help cover your child’s education expenses. You’ll need to complete a Free Application for Federal Student Aid (FAFSA®) form first.
Once you’ve filled out the FAFSA form, you’ll receive a Student Aid Report (SAR) that will list your expected family contribution (EFC). Your child’s school will use this information to determine how much financial aid they’re eligible to receive. If your child is eligible for a Parent PLUS Loan, the school will include this information in their financial aid offer.
If you decide to take out a Parent PLUS Loan, you’ll need to complete a PLUS Loan Application and Master Promissory Note (MPN). You can do this online at StudentLoans.gov or by completing and returniing the paper forms that your child’s school provides.
Once you’ve completed the application and MPN, the loan funds will be sent directly to your child’s school. The school will then disburse the funds to your child according to their schedule and use them to pay for tuition, fees, room and board, and other education-related expenses.
How to Transfer a Parent PLUS Loan to the Student
A Parent PLUS Loan is a federal student loan that allows parents to borrow money for their child’s education. Parent PLUS Loans have high interest rates and can be difficult to repay, so many parents choose to transfer the loan to their child. If you’re considering this option, there are a few things you need to know.
First, you’ll need to contact your lender and request a loan transfer form. Once you’ve completed and signed the form, your child will need to sign it as well. Once the form is complete, it will need to be sent back to your lender.
Once your lender has received the form, they will begin the process of transferring the loan. This process can take several weeks, so you’ll need to be patient. Once the loan has been transferred, your child will be responsible for making all future payments.
If you’re considering transferring a Parent PLUS Loan to your child, it’s important that you understand the pros and cons before making a decision. Weighing your options carefully will help you make the best decision for your family.
If you have a Parent PLUS Loan and your child is attending or planning to attend college, you may be able to transfer the loan to your child. This can be a good way to help your child get started on their college education without having to take on all the debt themselves.
To transfer a Parent PLUS Loan to your child, you will first need to contact your loan servicer and request a Direct Consolidation Loan. Once you have received the Direct Consolidation Loan, you will then need to contact the new loan servicer and request that they transfer the loan to your child.
Once the loan has been transferred, your child will be responsible for making all future payments on the loan. If you have any questions about how to transfer a Parent PLUS Loan to your child, please contact your loan servicer for more information.