PLUS Borrowing Tips
PLUS Borrowing Tips
1. Take time to carefully review your family’s financial situation
and identify every financing resource available.
2. Determine the total amount of education debt your family is
willing to accumulate during the student’s college enrollment. Take
into consideration the federal student loan debt the student will be
taking on as well as what income the student may realistically
expect after graduation. Use on-line calculators to help determine
future monthly payments.
3. Thoroughly review and decide how important the various features
of a loan are before choosing one; these features includes the fees,
borrower benefits and incentives, and consolidation benefits. Review
the Things to consider when choosing a PLUS loan section for
assistance.
4. Beginning July 1, 2006, guarantors are required to charge a
federal guarantee fee which was previously not charged by many. The
guarantee fee cannot be more than 1% of the amount of the PLUS loan.
When all loan features are the same, select a PLUS loan without a
guarantee fee. If selecting a PLUS loan other than those listed on
our web site, be sure to ask about the guarantee fee.
5. Consider consolidating, or refinancing, your PLUS loans.
Currently, if you consolidate your PLUS loans you receive a FIXED
interest rate. During times when interest rates are low you can
secure a low, fixed interest rate by consolidating your PLUS loan(s)
which will save you money over the life of the loan.
6. Ask questions of the lender when applying over the phone for a
PLUS loan. Don’t feel uncomfortable asking what may seem to be
simple questions. You are borrowing a loan which you will be paying
back over a long period of time so be sure to ask any questions you
may have.
7. Be in touch with our loan counselor. Our loan counselor is
knowledgeable about loan options and new trends in educational
financing and is a great resource for our families.
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