Compare Private Student Loans to PLUS Loans

Private Loan Benefits:

• Borrow up to the true cost of your education
  
• Fast eSignature process

PLUS loans (Parent Loans for Undergraduate Students) are recommended for dependent undergraduate students as a supplement to Stafford loans.

There are some situations, however, in which private student loans may be an alternative choice or a complementary choice to PLUS loans.

Loan ownership. In some cases, parents willing to assist their children in borrowing for a college education may not want to have loans taken out in the parent names. PLUS loans require the parent to borrow and assume the full obligation of the loan, whereas private student loans typically only recommend that parents co-sign for the loan. A private student loan is taken out by the student and the obligation to repay is the student's first.

Financial disclosure. Some parents are uncomfortable disclosing their full financial history to the Department of Education using the FAFSA form, and thus will not complete a FAFSA with a student. Those students are ineligible for federal student loans without a FAFSA on file, and some schools will not certify a PLUS loan without a FAFSA on file as a matter of policy. Private student loans require no FAFSA information from the student or parent.

School eligibility. Students may be attending a school (many vocational, technical, and trade colleges fit in this category) which is not Title IV certified, meaning that the school does not participate in the federal financial aid program. PLUS loans are unavailable to parents of students attending these schools, but some of them may accept private student loans.

Independent students. PLUS Loans were originally designed for the parents of dependent undergraduate students, and thus independent undergraduate students are ineligible for PLUS loans. While Stafford loans can certainly help to pay a portion of a college education, independent students should look to private student loans (with a non-parental cosigner when possible) to fill in the remainder of their financial need.

For more information: compare private student loans, check out our frequently asked questions page, view our list of private studen tloan lenders, or simply get started and apply online. As always, PrivateStudentLoans.com always recommends that students explore all of their financial aid options, from scholarships and grants to federal student loans, in addition to learning more about private student loans.