PLUS Loan Default: Consequences of Not Paying

A PLUS loan default is a serious matter that is much different than a regular student loan default. In fact, a PLUS loan default can have consequences that are much more severe than other loan types, such as federal Stafford or Perkins loans. Regardless of the type of student loan that you have, there are some important considerations that you should make in the event that you find yourself struggling to pay. The consequences of a PLUS loan default are significant and should be avoided at all costs.

Pell Grant: Get one Fast via the FAFSA

The Pell grant is a type of educational funding offering by the United States Department of Education that never has to be repaid. Like other types of grants, the federal Pell grant works by awarding students who meet certain criteria with money for college and college-related expenses. Students seeking a Pell grant will need to apply using the FAFSA or Free Application for Federal Student Aid. These forms are available at thousands of schools in the US, making the Pell grant easily available to students who qualify.

ACG Grants: How to Get a Federal ACG Grant

ACG grants or Academic Competitive Grants are sources of free money for college provided by the United States Department of Education. By filling out a FAFSA or Free Application for Federal Student Aid, a student can determine their eligibility for the ACG grant, as well as a host of other types of federal educational funding, including other grants, loans, scholarships, and work study. ACG grants are different from any other federal programs

Stafford Loan Default: How to Repair the Damage

A Stafford loan default is a very serious issue that requires immediate attention. Stafford loan default accounts are often pursued aggressively by both the federal government and professional collections agencies. In almost all cases, the Stafford loan default being held by the creditor is very easy to enforce in a court of law. This is because the MPN or Master Promissory Note that you sign in conjunction with filling out a FAFSA is your personal and legally binding guarantee

Stafford Loans: What Happens if I Default on a Federal Stafford Loan?

Stafford loans are essentially a contract between you as a student and the federal government. When you apply via the FAFSA for a Stafford loan, you agree to repay any money lent as either a subsidized or unsubsidized Stafford loan. This is why students who apply for a Stafford loan must sign a MPN or Master Promissory Note.

Perkins Loan: How to Get a Federal Perkins Loan

How to get a Perkins loan is as easy as filling out a FAFSA or Free Application for Federal Student Aid. The Perkins loan is a federally funded educational loan program that is offered to students with financial need. Because of this, not every student will qualify for a Perkins loan. In general, Perkins loans are granted to students whose household income is about $25,000 or less per year.

PLUS Loans: The Parent PLUS Loan Application Process

The PLUS loan provides parents with a means to fund the cost of their children’s undergraduate education. PLUS loans feature a low, fixed rate of interest and flexible repayment terms. This includes the ability to defer payments on the loan until the student has graduated or drops below half-time status. In some cases, parents may even have the ability to request a forbearance during times of financial difficulty.

PLUS Loans: Terms and Conditions of the Parent PLUS Loan

PLUS loans are the best option available to parents who wish to pay for their children’s college education. In fact, the federal government created the PLUS loans program specifically for this purpose. It can be difficult or impossible for some parents to pay for a child’s education out of their pocket- college is expensive and money is tight for many people.

PLUS Loans: How Much Money for College Can I get with a PLUS loan?

PLUS loans offer parents the ability to pay for their children’s education even when they do not have enough capital to pay out-of-pocket. PLUS loans for parents provide families with a way to enable a student to concentrate on what matters most- their studies. By not having to worry about paying for education on their own via taking out student loans or other forms of financial aid, students experience much less stress and in theory will perform better overall in their academic studies.

PLUS Loans: An Easy Way for Parents to Help Pay for College

PLUS loans do not enjoy the same level of attention that is paid to other forms of financial aid available on the FAFSA such as Stafford loans, Perkins loans, and the FSEOG. This is because PLUS loans are for parents. A PLUS loan allows a parent to fund their children’s education with a low interest rate and great terms on a loan that would be difficult or impossible to obtain elsewhere. However, because most of the information provided on the FAFSA or Free Application for Federal Student Aid is aimed at students, the availability of the PLUS loan is not widely known.