If you have several children who are going to school and you are experiencing difficulty with your finances, then you should know that the government is ready to help you. The PLUS program of the federal government grants parents loans to cover educational costs needed for each student to finish the studies with very low interest rates.

Parents who have dependents who are still studying can avail of the Federal Parents Loan for Undergraduate Student or PLUS. This is also referred to as a children’s aid that helps parents finance the tuition fees for their child or children. PLUS allows parents to avail of a loan amount to pay for the remaining educational cost left after applying for other student’s financial loans and any aid availed. A PLUS loan has two faces:

• FFELP – where the loan amount is granted by private institutions like banks or a lending company
• Direct loan – where the loan amount is granted by the government

Also, the Parents PLUS loan is solely a “parent” responsibility and the student is not liable to pay it. After all, it is the parent who should apply for it and the loan is under the parent’s name. If in case the student agrees to pay the amortization but was unable to do so, it is still the parent that is liable and held responsible for the loan. A separate loan program, Graduate/Professional loans are available for students who would like to borrow to finance their own education.

Parents applying for the Parents PLUS load are not obliged to have their child or children file for FAFSA but generally, it is very advisable to do so, so that your child will not miss any federal grants or aids provided by the government. Loan requirements are as follows:

• Completely filled up loan application with a signed promissory note
• The child or student must be enrolled in a school or learning institution at least 50% of the time to become eligible for the federal students’ aid
• Both the student and the parent are US citizen, eligible non-citizens or nationals
• Both should not have federal judgment lien on property
• The parent is not allowed to owe overpayment on any educational grant or at maybe in default on a former federal educational loan unless the parent had made satisfactory arrangements to pay the loan.
• The student must register with a Selective Service
• Colleges or schools must determine the eligibility of both the parent and the student by conducting a thorough aid history before Parents loan is certified.
• The school may also require the parent to submit or complete supplemental documents like a signed statement of education purpose.

Other important facts about Parents PLUS loan:

• When the parents had divorced, both parents; the custodial and the non-custodial can file for a PLUS loan as long as the sum of the loan amount does not go beyond the computed cap amount.
• Step parents can borrow for the student as long as he or she is legally married to the custodial parent.
• Legal guardians do not qualify to apply for a parents loan.

The government in coordination with other financial organizations is doing its best to assists parents to provide the best education to their child or children. This is because the government understands the need for the young to be educated to be good citizens of the nation and the world.