When do I apply for a Parent PLUS loan?
A Parent PLUS loan is a federal loan available to parents to help cover the cost of their child’s education. If you are considering applying for a Parent PLUS loan, it is important to understand when you should begin the application process. Timing plays a crucial role in securing this loan, so let’s explore when to apply and answer some related FAQs to make the process smoother.
1. When should I start the Parent PLUS loan application process?
You should begin the Parent PLUS loan application process as soon as possible. The application becomes available each year in the early spring, and it is advantageous to complete it early to ensure timely processing.
2. Can I apply for a Parent PLUS loan before my child is accepted to a college?
Yes, you can apply for a Parent PLUS loan before your child is accepted to a college. The loan approval is contingent upon your child’s acceptance to a qualifying institution.
3. Is there a deadline for applying for a Parent PLUS loan?
There is no specific deadline for applying for a Parent PLUS loan. However, it is recommended to submit the application at least six to eight weeks before the funds are needed to allow for processing time.
4. Can I apply for a Parent PLUS loan after the school year starts?
Yes, you can apply for a Parent PLUS loan after the school year starts. However, it is best to apply early to ensure the loan is processed and the funds are disbursed in a timely manner.
5. What happens if I submit an application for a Parent PLUS loan and then decide not to accept it?
If you decide not to accept a Parent PLUS loan after submitting the application, you can usually contact the loan servicer and cancel the loan before it is disbursed.
6. Can I apply for a Parent PLUS loan for multiple years?
Yes, you can apply for a Parent PLUS loan for each academic year that your child requires financial assistance. Remember to submit a new application each year.
7. Is there a credit check involved in the Parent PLUS loan application process?
Yes, a credit check is part of the Parent PLUS loan application. However, the requirements are less stringent compared to other loan types, and adverse credit history can often be appealed or overcome with an endorser.
8. Can I apply for a Parent PLUS loan if I have bad credit?
Yes, you can still apply for a Parent PLUS loan even if you have bad credit. However, you may need to obtain an endorser or appeal the credit decision with additional documentation.
9. What happens if my Parent PLUS loan application is denied?
If your Parent PLUS loan application is denied, you have a few options. You can appeal the credit decision, obtain an endorser, or explore alternative private loan options.
10. Can I borrow more than the cost of tuition with a Parent PLUS loan?
Yes, you can borrow more than the cost of tuition with a Parent PLUS loan. The loan amount can cover other educational expenses, including room and board, books, and transportation.
11. Can I transfer a Parent PLUS loan to my child?
No, you cannot transfer a Parent PLUS loan to your child. As the borrower, you are solely responsible for repaying the loan.
12. Can I make payments on a Parent PLUS loan while my child is in school?
While it is not required, you have the option to make payments on a Parent PLUS loan while your child is in school. This can help reduce the overall cost of the loan by minimizing accrued interest.