Since money for college no longer goes as far as it did even 30 years ago, Parent Loans for Undergraduate Students (PLUS) often are used to fill the funding gap for many college students attending their dream school. Using the Federal PLUS Loan to pay for college is a smart and easy solution, according to NextStudent, the Phoenix-based premier education funding company.

Year-Round Availability

Available at any time of the year, the Federal PLUS Loan equips parents with a reasonable, low-cost answer to covering rising college expenses, such as tuition, housing and books. With a PLUS Loan, parents may borrow up to the entire cost of their child’s education (less any other financial aid received), as long as their child is enrolled at least half-time, and even if tuition and other expenses almost are completely covered.

In order to qualify for the PLUS Loan, students and parents must complete the Free Application for Federal Student Aid (FAFSA). Parents may apply online using NextStudent’s easy application process that utilizes E-Signature and can ascertain their eligibility usually within only five minutes.

PLUS Loans Not Just for Parents

Graduate and professional students have similar access to the PLUS Loan Program with Graduate PLUS Loans (http://www.nextstudent.com/), which include many of the same benefits as PLUS Loans (http://www.nextstudent.com/plus_loans/plus_loans.asp): excellent rates and terms as well as generous borrowing limits. The only major difference is that instead of the funds being disbursed to the school, the funds go directly to the student and do not have to be repaid until after graduation.

Aggressive PLUS Loan Benefits Aid Borrowers

Whether a borrower is a parent who participates in the PLUS Loan Program or a graduate student involved with a Graduate PLUS Loan, the rates are set by the government. There are many competitive incentives offered by NextStudent that pass along substantial savings to borrowers. If parents or students opt to make automatic payments with Auto Debit they will receive a .25 percent interest rate reduction. If borrowers make 12 consecutive on-time payments, they will receive a 3 percent cash rebate at repayment on the remaining principal balance. After 48 consecutive on-time payments, borrowers will receive a 2 percent interest rate reduction.