What is a Parent Plus loan?

    Published: 06-16-2009
    Views: 17,678
    Financial advisor Brad Barnett discusses what a Parent Plus loan is.

    Brad Barnett

    Brad received his Bachelor of Science degree from Southern Arkansas University, with a major in Psychology and a minor in Business.  He furthered his education by graduating from the Medical College of Virginia at Virginia Commonwealth University with a Master of Science degree in Rehabilitation Counseling, specializing in Mental Health.  He has been involved in the financial aid and/or rehabilitation professions for the past 15 years. Brad, a Past President of the Virginia Association of Student Financial Aid Administrators (VASFAA), currently serves as the Senior Associate Director of Financial Aid & Scholarships for James Madison University.  Immediately prior to JMU, he served as an Assistant Director of the Financial Aid Office at Virginia Commonwealth University.  Brad has presented numerous sessions at state, regional, and national conferences, and has served on a variety of association committees.  In addition to speaking at professional conferences, Brad has conducted an abundance of workshops and presentations in non-conference environments, including teaching a credit based financial literacy course at JMU entitled “Dollars and Sense.”  Many of the topics Brad’s speaks on include communication, leadership, values, financial aid policies and procedures, financial literacy, and saving for college.  He has also facilitated strategic planning and value development retreats.

    Host: What is a Parent PLUS Loan?

    Brad Barnett: A Parent PLUS loan is a loan that the Federal Government will allow a parent to take out on behalf of a dependent student and the dependent student is defined by the FASFA. The FASFA form will tell you whether that student is dependent. So, after we have given the student all the financial aid, we possibly can if there s still more assistance that s needed, then the parents can apply for a PLUS loan, then they have a pass a credit check. So, it's not a Give-me loan but if they qualify they can get this loan. The other side of this though, is to keep in mind that parents will begin paying on that PLUS loan while the student is in school. There maybe some options for them to put that into a forbearance or deferment until the student graduates but they need to talk to lender about that and if they do, ask them what s going to happen to the interest while they are not paying on this loan.