Financial Aid is mostly for Students, but there are many ways
parents can sponsor their child while in college. Most of the techniques for parents revolve around loans and Parent Loans especially.
 |
Apply Now for Parent Loans |
Many different Parent Loans exist. Both federal programs Federal Direct Loans Program and
Federal Family Education Loans (FFEL) Program offer Parent Loans.
If the Federal Programs are not enough students can always take out a Parent Loan at a private bank.
Read more information on Private (Alternative) Parent Loans.
|
|
Need money for college? Use FastWeb's free scholarship search to find information on more than 600,000 scholarships! Find free money for college or an advanced degree. Search now! Heading Back to School? - Don't forget to find scholarships for college at FastWeb.com Find Free College Money! |
If the Federal Parent PLUS Loans and Private Parent Loans
are not the answer parents can try to obtain Peer to Peer Loans.
Peer to Peer Parent Loans are provided by other investors willing to lend money to others. These loans are not educations per say
but they are an option and could be used towards education.
By borrowing money you investment in your child. You borrow the money, knowing college education will create a more prepared child for his/her professional career.
They are called: Federal Parent PLUS Loans.
As the name suggests these loans are Parent Loans offered to eligible students enrolled in accredited American institutions of higher education to help finance their education. The terms of the
loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees repayment to the lender if a student defaults. These loans are guaranteed by the
government and their interest rates are low.
These loans are for undergraduate, graduate and professional students enrolled for at least half-time. Both
Federal Direct Loans Program and
Federal Family Education Loans (FFEL) Program support
Parent PLUS Loans.
These loans are not awarded based on the need and parents can borrow up to the full cost of their child's tuition and extra expense, minus the federal aid the student receives already.
Federal Parent PLUS Loans help parents invest in their loved ones.
Private Education Loans or sometimes called Alternative Loans.
They are credit based loans offered by private lenders (banks) or other private lending institutions. The interest rates on these loans vary. They are not need based.
FAFSA Application does not have to be submitted.
This form of landing connects parents and others that want to borrow money with those that are willing to lend. This is not a parent loan specifically, but it allows parents to borrow money that
can be used towards their child education.
Peer to Peer Loans is picking up momentum as standard lending sources are dying out. It is probably the most flexible form of
lending as anything can be negotiated and tweaked towards every student or parent. This is very important as everyone has a different borrowing requirement. Some of the loans under this method
could have high interest rate for riskier loans, which would not be otherwise possible using private lending (banks and lending institutions) loans.
Under Peer to Peer Loans you define the parameters for the loan and we market your application. If we find a matching lender your
loan process starts. If we do not match a lender you have to option to edit your parameters and resubmit the application back into the market.
These loans are not based on the need and credit history does matter. The better the application the easier it is to find a lender. Check this website in the near future and we will have a fully
automatic way of providing Peer to Peer Loans for parents.
|
|
Need money for college? Use FastWeb's free scholarship search to find information on more than 600,000 scholarships! Find free money for college or an advanced degree. Search now! Heading Back to School? - Don't forget to find scholarships for college at FastWeb.com Find Free College Money! |
Personal Loans are an option for parents if they can not find anything else.
These loans are mostly unsecured loans made for any purpose. They range from $500 to $50,000. Since they are unsecured a large collateral commitment is not required for them.
They are similar to Peer to Peer Loans. Credit check and income verification is mostly required. They are used for any purpose, so
they can be used to pay for your child's education.
Personal Loans are not your classical approach to Financial Aid.
They should be the last line of defense right after Peer to Peer Loans.
You attack this loan after trying everything else. Personal loans carry very high interest rates and these loans have to be repaid.
Parents wants to sponsor their child's education. The problem is most of the Financial Aid is not for them, but rather for
the Students. The most common type of Financial Aid
for parents are Parent Loans. They could be Federal Loans
or Private Loans.
Out of the pool and the best loan out there is Federal Parent PLUS Loan. This loan carries the lowest interest rate, plus
this loan is one of the those that can be forgiven.
We advise our financial aid candidates to use our tools below and see how much college is going to cost, how to plan or save for college, how to find financial aid, and calculate
loan amounts.
 |
 |
 |
 |
 |
||||
| Loan Calculator | Budget Planner | Save Money WIZARD | Financial Aid WIZARD | How Much For College |
Related Information
Federal Direct Loans Program
Federal Family Education Loans (FFEL) Program
Financial Aid Wizard
Related Resources
FAQ
Glossary
Facts
News and Articles
Discussion
Questions
Back To Financial Aid
Back Home
