Review:
Federal Plus Loans
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Federal PLUS Loans are federal student loans provided by the U.S. Department of Education that are available to graduate or professional students and to parents of dependent undergraduate students. These loans help cover education costs not met by other financial aid, offering an option for those needing additional funding. They typically have fixed interest rates and the borrower is responsible for repayment after disbursement.
Key Features
- Available to graduate/professional students and parent borrowers of undergraduates
- Fixed interest rate set annually by the government
- Loans accrue interest during in-school, grace, and repayment periods
- Credit check required; approval based on creditworthiness
- Flexible borrowing limits up to the cost of attendance minus other financial aid
- Repayment begins after loan disbursement with options like income-driven repayment plans
Pros
- Accessible for students needing additional funds beyond other federal aid
- Fixed interest rates provide predictable repayment costs
- Available with various repayment plan options tailored to borrower needs
- No need for a separate application process if applying for other federal aid programs
Cons
- Requires a credit check and can be denied based on credit history
- Higher interest rates compared to subsidized loans since interest accrues during school
- Borrowers are responsible for repayment regardless of educational outcome
- Limits may still be insufficient for very high-cost programs