| The parents of students opting for higher education | | | | provisions for consolidation of plus loans. |
| take the Plus Loans. These loans are taken to | | | | The differences between plus loans and federal loans |
| supplement the income of students. It meets the | | | | are as follows: |
| various necessities of funds to finance the aspects | | | | - unlike federal loans, the parents can take plus loans |
| other than their fees of college education. To | | | | too. |
| elaborate, the plus loans are used to finance boarding, | | | | - Plus loans have higher interest rates as compared |
| lodging, books, tuition fees and so on. Plus loans are | | | | with federal loans. |
| also used for financing any unexpected expenditure | | | | - The credit worthiness of the parent is checked and |
| incurred in education. | | | | only then the loan is issued. |
| Features of Plus Loans | | | | - A few repayment options are offered to plus loans. |
| The two important features of Plus Loans are as | | | | - Plus loans are due to be repaid immediately. |
| follows: | | | | Consolidation of plus loans |
| - they can be repaid immediately upon disbursement | | | | Plus loans have the option of consolidation. The |
| and | | | | consolidation of plus loans can be done immediately |
| - they can be consolidated. | | | | after disbursement. The plus loans can be |
| Plus Loans Versus Federal Loans | | | | consolidated for the following education categories: |
| Plus Loans share certain similarities with federal loans. | | | | - under graduate studies |
| Also, they pose certain differences as compared with | | | | - graduate studies. |
| federal loans. | | | | The benefit of plus consolidation is that |
| The Common features that plus loans share with | | | | - it gives the students the option of further |
| federal loans are as follows: | | | | continuing their education program. |
| - The US government secures plus loans too. | | | | - Also, if they are unemployed after finishing the |
| - The Plus loans are available under the Direct | | | | course or if they face any financial difficulties, they |
| Student loan program. | | | | have the option of defusing the loan. |
| - Plus loans are available through the private lenders | | | | Thus, most parents and students prefer to |
| too. | | | | consolidate their plus loans. |
| - Various federal consolidation loan programs offer | | | | |