SOURCE: NextStudent

August 13, 2007 11:47 ET

PLUS Loans From NextStudent Can Give Parents a Way to Help Their Children Pay for College

PHOENIX, AZ--(Marketwire - August 13, 2007) - As parents of undergraduates review financial aid award packages for the upcoming school year, they may realize they might need a little help meeting their expected family contribution. Or some parents may have children who didn't receive any financial aid at all. When parents of undergraduates need a financial boost in order to help their children pay their unmet college expenses, a Federal PLUS Loan may be the solution they're looking for, says NextStudent, a leading Phoenix-based education funding company.

PLUS loans (Parent Loans for Undergraduate Students) are non-need-based federal education loans designed to help creditworthy parents meet their undergraduate child's educational expenses. Since PLUS loans aren't awarded based on financial need, eligible parents, regardless of their income or assets, can qualify for PLUS aid. Eligible parents can use PLUS loans from NextStudent to finance their undergraduate children's full cost of attendance each school year, less any other financial aid (such as Stafford loans, work-study, scholarships or grants) their children have received.

PLUS loans from NextStudent feature several borrower benefits:

-- No prepayment penalties

-- Fixed interest rate on PLUS loans taken out after July 1, 2006

-- Forbearance and deferment periods

-- Consolidation benefits, so a parent consolidating his or her PLUS loan(s) can take advantage of all the benefits of federal student loan consolidation.

-- Mid-year application, so that parents may still apply for a PLUS loan after the school year has already begun, depending on the final deadline set by a school's financial aid office

A PLUS 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 student loans. To be considered eligible, undergraduate children must also be under 24, single with no dependents, and U.S. citizens or permanent residents, and they may not be in the military, military veterans, or wards of the court

Parents of eligible undergraduates, like their children, must be U.S. citizens or permanent residents in order to qualify for a Federal PLUS Loan from NextStudent. Parent applicants must also qualify as creditworthy. Either parent may apply for a PLUS loan, and if a parent applicant doesn't meet the credit eligibility requirements, he or she may apply with a co-signer who does meet those requirements.

Whether qualifying on their own or with an eligible co-signer, parents who want to be able to help their children pay for college can turn to a Federal PLUS Loan from NextStudent. A PLUS loan can provide parents with the financing option they need when their children's financial aid award doesn't completely pay for the cost of attendance or when their children don't receive a financial aid award at all. Either way, a Federal PLUS Loan from NextStudent can help parents ensure that their children's college costs are covered.

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 2.4 million scholarships worth $3.4 billion.

For more information about NextStudent and its student loan programs, please visit the company's Web site at

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