Sponsor Loans
A Sponsor loan allows a parent or other creditworthy person to
borrow on behalf of a student and take full responsiblity for the
loan.
The greatest advantage of a sponsor loan is that the loan is in the
name of the sponsor borrower only. The student does NOT sign on the
loan, similar to a PLUS loan. This means that the total debt of the
student would not include the amount of the sponsor loan.
A sponsor loan would be an option for a parent who is willing to
accept a variable interest rate on a private loan over a fixed rate
on a Federal PLUS loan.
A sponsor loan would be an option for a person other than a parent
to borrow on behalf of a student. The borrower can be anyone other
than the student.
Click on the sponsor loans to the bottom to review and compare their
features and benefits.
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