The Federal Government has two loan programs, one for students and one for parents. Loans for undergraduate students offer great rates but cap out at just $27,000 over 4 years; Federal Parent PLUS loans allow qualifying parents to fill their gap but have the same rate regardless of their credit score and charge expensive origination fees.
| FEDERAL GOVERNMENT LOANS | |
|---|---|
| STUDENTS Loans |
PARENTS PLUS Loans |
| Best rates but limited to $27,000 over 4 years | The same rate for all borrowers, plus expensive origination fees |
| PRIVATE LOANS | |
|---|---|
| STUDENTS | PARENTS |
| Best rates when there is a co-signer; more funds available than Federal Student Loans | Better rates than PLUS Loans for borrowers with good credit |
SHOULD WE CONSIDER PRIVATE LOANS?
Because Federal Student loans aren’t usually enough, private student and parent loans can be a great alternative to PLUS loans.
For parents with good credit, private loans may be a much better option than Federal PLUS loans for several reasons.
- Better rates for well-qualified applicants
- No origination fees or prepayment penalties
- More flexibility in loan type and repayment options
- Anyone can borrow on student’s behalf – a parent, grandparent, spouse or friend
HOW DO WE CHOOSE A PRIVATE LENDER?
We’ve vetted the nation’s leading private student and parent loan providers based on these criteria:
Competitiveness of Rates
Available Discounts
Repayment Options and Terms
Lack of Fees and Penalties
User-Friendly Application
Likelihood of Getting Approved
Value-Added Resources for Our Clients
Variety of Loans Offered
Responsiveness to Customers and Applicants
Lender’s Reputation, History, and Solvency
The hands-down winner of our exclusive recommendation?
VALUABLE BENEFITS FOR SMARTTRACK CLIENTS.
SMARTTRACK® clients get these valuable benefits – but you must apply through this link:
- Automatically be entered to win one of ten $500 Scholarships!
- 4 months of free study help – a $100 value – to help students solve study questions and textbook problems 24/7.
- Free access to robust financial literacy resources to help you and your student borrow wisely.
- Interest rate discount of .25% when you enroll in automatic payments.
- SMARTTRACK® will provide our clients with a congratulatory gift card when their loan is approved!
You MUST apply using this link to qualify for all of these valuable benefits!
GREAT RATES.
LOAN RATES THAT BEAT FEDERAL PARENT PLUS LOANS
Well-qualified borrowers may be eligible for loan rates that beat federal Parent PLUS Loans. To know for sure which Parent or Student Loan is the right choice for you, submit an application now.
| PLUS Loan | Our Top Pick Parent Loans | |
|---|---|---|
| Origination Fees | The Federal Parent PLUS Loan currently charges a 4.236% origination fee | No origination fees |
| Interest Rates | Non-competitive fixed rate | Choice of competitive fixed or variable rates |
| Better Rates for Good Credit | No | Applicants with good credit may be offered better interest rates |
| Eligibility Requirements | Loans are for parents only, but the student must be enrolled at least half-time | Any creditworthy adult (other family, friends) may apply, and the student may be enrolled for less than half-time |
| Student Loan Options | No | Multiple options for student borrowers |