Does The Federal Parent Plus Loan Make the Most Sense & Why do the colleges recommend you to take It

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A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions. Federal student loans over private loans in almost all cases. But PLUS loans have some features that may make a private loan a more desirable option. As a general rule, take out student loans in this order:
Choose federal subsidized and unsubsidized loans first. As a parent, that means your child will borrow as much as they need in federal loans in their own name, up to the maximum. As a graduate student, that means taking out the maximum in unsubsidized federal loans.
Look into the interest rates you’d likely receive for private loans. Since these are based on credit history, borrowers with good or excellent credit will get the best rates. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments. Private loans have limited repayment flexibility. But if you think you’ll be able to pay them off quickly or won’t need the option to postpone or lower payments, they may be cheaper.
Take out PLUS loans if your credit isn’t strong enough to get a low-interest private loan, or if you plan to qualify for Public Service Loan Forgiveness. Use PLUS loans to fill a gap after subsidized and unsubsidized loans, grants, work-study and scholarships have been applied. Borrow as little as you can manage.
Fees for Federal Student Loans
Most federal student loans have loan fees. These fees are a percentage of the total loan amount.
A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.
You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2019.
Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans
First Disbursement Date
Loan Fee
On or after 10/1/20 and before 10/1/23
1.057%
On or after 10/1/19 and before 10/1/20
1.059%
Loan Fees for Direct PLUS Loans
First Disbursement Date
Loan Fee
On or after 10/1/20 and before 10/1/23
4.228%
On or after 10/1/19 and before 10/1/20
4.236%

[@alaluke7159]

Enjoyed watching this and looking at the different rates for loams.

[@edzamoracollegeprepchannel3820]

Thank you for your support

[@christyschiller8931]

Watching all your videos. I am your new biggest fan. My son will be a Freshman Fall 22. Thank you for these amazing videos. So explanatory!!

[@edzamoracollegeprepchannel3820]

Thank you I appreciate the support

[@randy_g2094]

Thank ypu for the information. Very helpful. My daughter is a senior at Bryant High School in Arkansas, class of 2023.

[@barbrabowers571]

NJ Class or Parent Plus....Go! I didn't want to do a private lending company as their rates I was told vary by credit score. Thank you!

[@makallen5928]

Thanks Ed! Class of 2023 and Roxbury Highschool

[@fmed2412]

Right now, this has better interest rate than other private lender due to increase in interest rates.

[@edzamoracollegeprepchannel3820]

The State Loans are the top at the moment but yes Plus loan is now very competitive

[@clarkerots9348]

Thank you for the insightful information. West Morris Central HS, Class of 2024

[@dawnmousie3398]

Thank you! Pequannock Township HS 2022-23😊

[@edzamoracollegeprepchannel3820]

Thank you for watching your high school has been counted

[@MultiSUNFLOWER18]

Thank you! Florida Connections Academy Class of 2024

[@aalcox31]

I really need help. I'm currently paying 1k monthly out of pocket due to my college student incorrectly filling out FASFA.

[@christopherd7922]

Hi my daughter is attending college fall of 2023. We were thinking of taking a parent plus loan through the feds, but its at 8.05% plus origination fee. Private I can get under 5% to me it seems like a no brainer to go private. Friends of mine say go Federal just in case the government ends up paying it? To be honest Im not holding my breath on that happening. I would like to hear your thoughts. Ty

[@ryanneumeyer5553]

Thanks for the info Ed! Roxbury High School Class of 2024

[@karendeane7786]

IHA 2023 videos are beyond helpful

[@neilbhatt7096]

who needs credit score of 600/620. student or parent?

[@jodireiss]

Huge fan! Met you last fall at JTHS. Have a rising college freshman and rising senior. Your college loan videos have been very helpful. Thank you! Question though: you name your top five, but should you apply to a couple simultaneously or wait to see how it goes. As a teacher I received something from the NEA/College Ave. partnership. And something similar from Sallie Mae. I was just going to apply for PLUS until I saw your videos. Just not sure how to organize myself, so to speak.

[@edzamoracollegeprepchannel3820]

I'd do the top two and see what the rate comes back at. If it's too high above 6 or so I'd go with NJ Class

[@ReneeSantos-wd5xd]

I need help

[@daikonnn822]

😊thank you

[@josephbielski8027]

Emily Bielski Hackettstown High School class of 2023

[@FIRE_AtTheBeach]

this is crazy.. who can afford college anymore

[@pep590]

Community college for starters. A fraction of the price for the first 2 years.