Parent Plus Loans: Everything You Need to Know Part 1

[@honeydoll8128]

My mom and I were looking at Federal PLUS loans and we didn't quite understand it. Thank you so much for helping! You made it really simple and understandable

[@paid4college]

You are so welcome!

[@ToriMurray-k1m]

Thank you for sharing this information! I am in the process of preparing to pay these loans back so this information is useful!!!

[@jobeee11]

When I went to school 5 yrs ago, The government wouldn’t give me the loan by myself and required a parent plus loan. I literally had no choice other than private loans at higher rates and those loans don’t have repayment plans unlike the government

[@paid4college]

There are limits to how much a student can receive in Federal Student Loans each year. This is good feedback, I'll do a video on this.

[@susankenny1243]

THANK YOU! Even though you made this in 2019, you helped explain A LOT to me in planning for college. Question: When you said “Don’t take out more than you need”. There is a question I have had regarding what I can use for the Federal loans. Do you have a video that covers that? Thank you!

[@mariiahv3173]

I can't cover tuition even with both subsidized or unsubsidized plus aid ;-;

[@mariiahv3173]

@Pelumi Soyebo I did the graduate plus loan (it's the equivalent but debt goes to me not parents) because I started graduate school

[@mariiahv3173]

I finished undergraduate in Puerto Rico where the tuition is covered with fafsa and sub loan

[@paid4college]

We believe that students should not solely depend on loans to cover tuition. There are more options including scholarships to cover the cost. Stay tuned, we’ll post videos on these.

[@DiasporaNewJersey]

Same here

[@denisepatterson7405]

WOW! this was excellent information. We watched this as a family and learned so much in 10 minutes please keep these videos coming. I subscribed and will share this with other parents.

[@paid4college]

This means the WORLD! Kudos to you and your family! Family Financial Fridays! Love it! I will certainly keep them coming. Thank you for subscribing and supporting!

[@thedude5040]

Avoid parent plus loans at all costs. If the loan is not paid the government will garnish your social security income!

[@paid4college]

@@thedude5040 Thank you for your input. We will share all the consequences in the part 2 video. This video was the share the background information and how to plan for payments.

[@Mixinyi]

Is the parent plus loan start paying every month? or does it wait until after the student graduate?

[@paid4college]

A parent can start paying towards the loan while the student is enrolled. They can also wait till after the student graduates or is no longer enrolled but please note interest is accruing the entire time you have the loan. It does not wait.

[@mariaaleong2892]

Thank You! Great video

[@dynabite-2361]

Can your parent switch responsibility of loans to children

[@paid4college]

Great question! I answered in part 2. No they can not. Parents are the sole owners of the loan.

[@milagrosfernandez8405]

Good night. I am seeking responses to these specific questions I have. I have been watching videos for quite long days, searching in FAFSA StudentAid, etc., but still not. So any help will be much appreciated. I am not unfamiliar with Direct Plus Loan. Actually, my daughter is in her second semester. I do already have a parent plus loan for the 2022-23 academic year. Then, my questions are: 1) My daughter would like to go do some credits during the summer and signed up for 3 classes. Then, does the parent plus loan, will cover summer classes? I simply can't pay for such classes "a la carte" (3 courses for around $15k). Then, I reviewed the steps of my application last year, and the options are the ongoing academic year (2022-23), the next academic year (2023-24), or the loan period, which apparently you can pick. So my question is: Can this loan be given or requested to cover a short period (summer only)? During summer, although you may want, students won't be able to do the same number of credits they do in a semester FT. Are there any restrictions on that? Is it possible? 2) Then, my second question, which is contingent on the first one..... I will definitely need a parent plus loan for the Fall-Spring 2023-24 year. So, can I request one (1) parent plus loan (which will be smaller) for the summer courses (if it happens to be possible); AND, a second parent plus loan for the standard academic year? Or not? I can't find responses anywhere, so any help will be appreciated. Thank you!

[@paid4college]

Good night! Thank you for asking. Great questions. All financial aid years are from July 1 to June 30, which is directly connected to which FAFSA year you completed for funding. 1. Your student should contact her school to determine which FAFSA form she should complete for funding for summer school - as it’s dependent on the summer months enrolled. Your student does not have to take FT credit hours. 2. Your students school can direct you on how to apply for a parent plus loan for the summer months. So bottom line your main point of contact is your students’ financial aid office. They can direct you on how to get funding for summer courses.

[@milagrosfernandez8405]

@Paid4College Thanks so much for your response. Now I have the picture less foggy. But, another question comes to mind. Is it possible to request/apply for more than one parent plus loan---for the same student and for the same academic period?? Please let me know any info on this regard that you can share with me. Thanks!!

[@milagrosfernandez8405]

I have a question (that is killing me). Can you apply for a second, another parent plus loan, for the same student for the same academic year? I applied and I was granted the loan during late July. And all of it was disbursed right before classes (Fall). But, because of some financial problems and the small financial aid package my daughter got, I may need a loan for Spring. Is it possible? I'd appreciate it if anybody knows.

[@shaundrasantana4751]

great video- thanks Fast forward to 2022- I want my child to take out a federal loan in her name. Is that through FAFSA?

[@paid4college]

You’re more than welcome. Yes, if your child completed the FAFSA she will receive notice of how much she is able to take in federal student loans on her Financial Aid Offer from the institution

[@shaundrasantana4751]

Thanks for your reply. FAFSA didn’t give much, 20% of tuition I guess next step would be pvt loans. Any suggestions for under her name.

[@paid4college]

Yes, FAFSA does limitations for undergraduate students. She should contact her institution first to consider additional free aid, and payment plan options before loans.

[@shaundrasantana4751]

THANK YOU- I appreciate the advice

[@curbsidetech]

Awesome information Thank you! just sub'd

[@paid4college]

Awesome, thank you!

[@ericgoldberg1079]

But a student cannot secure a student loan unless they are gainfully employed

[@teestyle85]

You must be referring to a private loan not Federal student loans

[@milagrosfernandez8405]

Thanks so much for the advice you provided me a few days ago regarding this parent plus loan with summer courses. I contacted my daughter's financial counselor and she steered me in a good direction. However, I have a question that stems from experience. I am being asked in the Summer application for financial assistance if I would need a plus direct loan. My question is.... Do colleges/universities offer more grants/aid if you indicate you are planning to supplement any cost with the direct plus loan? (Because the parent plus long/short term or any kind of loan is your problem.) OR, if you simply DO NOT say anything (which is ok; it is just collecting information). My rationale is that it may drive the college to provide you a better package. (For this matter, FAFSA is already done and submitted, and Direct Plus Loan is separate)

[@adaezeahanotu9109]

Where is the excel sheet?

[@paid4college]

The link is in the description. :-)

[@angels7571]

@@paid4college I clicked on the link but it’s not appearing

[@paid4college]

When you click on the www.paid4college/videos link it will take you to the page where there is a downloanable link to the free excel sheet. I just tested to make sure.

[@harlangleeson9496]

thanks!

[@felci]

gotta be a taurus

[@paid4college]

Good guess but I’m not actually.

[@jordanjreamer203]

@paid4college ARIES

[@coastallivingmississippi188]

So basically take out a loan when you’re in your 40s and 50s and then working till you’re 120 so your kids can finish college that’s OK I’m not interested 😂😂😂

[@paid4college]

This video was informational not a recommendation. It’s great if you don’t have to take out a loan for your student for many that’s not an option.