What are the two types of PLUS loans?

Asked by: Patrick Ziemann  |  Last update: March 31, 2025
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Note: A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent, and as a grad PLUS loan when made to a graduate or professional student.

Should I accept both subsidized and unsubsidized loans?

Given the option, you should accept a Direct Subsidized Loan first. Then, if you still need additional financial aid to pay for college or career school, accept the Direct Unsubsidized Loan.

What's the difference between a PLUS loan and a Grad PLUS loan?

The U.S. Department of Education makes Direct PLUS Loans to eligible graduate or professional students through schools participating in the Direct Loan Program. (We also offer Parent PLUS loans.) A Direct PLUS Loan is commonly referred to as a grad PLUS loan when made to a graduate or professional student.

What are the 2 most common types of loans?

Common examples include home loans, vehicle loans, and loans against securities. These loans usually have lower interest rates due to the security offered.

What are the 2 main types of federal loans?

Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

How To Pay Off Student Loans Quickly

20 related questions found

What is a direct plus loan?

GLOSSARY. Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students use to help pay for education expenses. Like Direct Subsidized and Unsubsidized Loans, these loans have a fixed interest rate.

What are the two main types of federal grants?

Related, there are two main types of federal grants: categorical grants and block grants.

What are the two main loan terms?

There are several important terms that determine the size of a loan and how quickly the borrower can pay it back: Principal: This is the original amount of money that is being borrowed. Loan Term: The amount of time that the borrower has to repay the loan.

What are the two main types of installment loans?

Examples of installment loans
  • Mortgage—a secured installment loan used to purchase a home.
  • Personal loan—an unsecured installment loan used to pay for major purchases, such as home repairs.

What are the two most common types of consumer loans?

The Basics of Consumer Loans. There are two primary types of debt: secured and unsecured. Your loan is secured when you put up security or collateral to guarantee it. The lender can sell the collateral if you fail to repay.

Are parent PLUS loans forgiven after 10 years?

Parent PLUS loans can potentially be forgiven after 10 years under specific conditions, such as through the Public Service Loan Forgiveness (PSLF) program after consolidation into a direct consolidation loan. Parent borrowers must enroll in the Income-Contingent Repayment (ICR) plan to qualify for PSLF.

What is the maximum I can borrow for a Grad Plus loan?

There are no fixed annual or aggregate loan limits for Direct PLUS Loans. The maximum Direct PLUS Loan amount that a graduate/professional student or parent can borrow is the cost of attendance minus other financial aid received.

What is the difference between a Stafford loan and a PLUS loan?

Unlike a Stafford loan, the funds from a PLUS loan are paid directly to the parents of the student even though the money is being borrowed on behalf of the student.

Can you decline a student loan after accepting it?

After Your Loan Is Disbursed

You have the right to turn down a loan or to request a lower loan amount.

What increases your total loan balance in FAFSA?

Interest accrual, interest capitalization, fees, deferment, forbearance, and grace periods can all increase your student loan balance. Paying more than the minimum each month, making extra payments, and paying interest while in school can help reduce your loan costs.

How much financial aid should you accept?

To determine how much loan money to accept, make a list of your college and living expenses and the resources you'll have available to pay them; in other words, make a budget to help ensure you borrow only what you need.

Do installment loans hurt your credit?

As long as you make your scheduled monthly payments for an installment loan on time, your credit score will improve. Payment history makes up 35% of your FICO score calculation, so it's important you don't miss a due date.

What is the most common type of loan?

The eight most common types of loans you should know about are personal loans, cash loans, debt consolidation loans, balance transfer loans, auto refinance loans, home loans (mortgages), co-borrower loans, and payday loans.

How hard is it to get a personal loan from Chase bank?

While Chase Bank is one of the largest U.S. banks with a wide range of financial services and products, it does not offer personal loans. If you're looking for a personal loan, you'll need to skip Chase and apply for one of the best personal loans available with another bank, credit union, or online lender.

Which loan is easy to borrow?

Eazzy Loan is an easy loan to get, No guarantors, No forms, no branch visits. You receive the loan instantly on your phone, saving you valuable time. It offers a flexible repayment period of up to 24 months.

What does your credit score tell you?

A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time. Creditors and lenders consider your credit scores as one factor when deciding whether to approve you for a new account.

Which loan term is the best financially?

Shorter loan terms generally save you money overall, but have higher monthly payments. There are two reasons shorter terms can save you money: You are borrowing money and paying interest for a shorter amount of time. The interest rate is usually lower—by as much as a full percentage point.

How to get free grant money?

The government does not offer "free money" for individuals. Federal grants are typically only for states and organizations. But you may be able to get a federal loan for education, a small business, and more. If you need help with food, health care, or utilities, visit USA.gov's benefits page.

What are the two types of government funding?

Types of Governmental Funds
  • General Fund. A general fund is the chief operating fund for the entire government. ...
  • Special Revenue Funds. These are used to track the revenue from specific sources restricted to certain purposes. ...
  • Debt Service Fund. ...
  • Capital Projects Fund.

What are the two main sources of funding for grants?

The two primary sources of grant money are public and private funds. Public funds are obtained from governmental units, such as federal, state, and local agencies.