SOURCE: NextStudent

November 15, 2007 12:37 ET

8.5% Fixed-Rate NextStudent PLUS Loan Gives Parents Mid-School Year Option to Help Their Children Pay for College

PHOENIX, AZ--(Marketwire - November 15, 2007) - Unlike some student loans that have application deadlines early in the fall semester, Federal PLUS Loans give parents with college-aged children a financing option that they can apply for throughout the school year (depending on the final deadline set by the school's financial aid office). With fall semester ending and families gearing up their college budgets for spring, parents of undergraduates who need a little more financial help can take advantage of mid-year application with a PLUS loan from NextStudent, a leading Phoenix-based education funding company.

PLUS loans (Parent Loans for Undergraduate Students) are non-need-based federal student loans designed to help creditworthy parents meet their undergraduate children's educational expenses. PLUS loans from NextStudent give families a low-interest option for college financing that serves as an alternative to dipping into the family savings or borrowing against a home.

Since PLUS loans aren't awarded based on financial need, eligible parents can't be disqualified for making too much money. Eligible parents can use PLUS loans from NextStudent to finance up to 100% of their undergraduate children's full cost of attendance each school year, less any other financial aid (such as Stafford student loans, work-study, scholarships or grants) their children have received.

NextStudent PLUS loans feature several borrower benefits:

  • No application fees
  • No prepayment penalties
  • Fixed interest rate of 8.5%
  • Mid-year application
  • Consolidation benefits, so parents consolidating their PLUS loans can take advantage of all the benefits of student loan consolidation

Under certain circumstances, PLUS loan borrowers may also qualify for deferred, income-sensitive, or extended repayment options.

A PLUS loan borrower must be a parent or legal guardian of an eligible undergraduate dependent. Eligible undergraduates are students who are enrolled at least half time, who are meeting satisfactory academic progress standards set by their college or university, and who aren't in default on any federal college loans. To be considered eligible, undergraduate children must also be under 24, single with no dependents, and U.S. citizens or permanent residents; they may not be in the military, military veterans, or wards of the court.

Parents of eligible undergraduates must qualify as creditworthy and must also be U.S. citizens or permanent residents in order to be eligible for a Federal PLUS Loan from NextStudent. A parent applicant who doesn't meet the PLUS loan eligibility requirements may apply with a co-signer who does meet those requirements.

About NextStudent

NextStudent, Federal Lender Code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services, including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation's oldest and largest scholarship search engines, is updated daily, available free of charge, completely private -- and represents 5.9 million scholarships worth over $16 billion.

For more information about NextStudent and its student loan programs, please visit the NextStudent website at www.nextstudent.com.

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