December 3, 2009

Does A Parent Plus Loan Have Fees?

Posted in Private Loans tagged , , at 12:02 PM by dbonvie

YES. Parent Plus loans do have fees.

The standard fees attached to a federal Parent Plus loan include a 3% origination and a 1% default fee. That 4% can be quite significant too if you are taking out a great deal of money for your student. It’s also important to note that those fees are taken right off the top as well. So if you need $10,000 you should apply for $10,400. That way $10,000 will make it’s way over to the school.

You may also find that some lenders are willing to waive the default fee. If this is the case jump on that deal. A 3% fee is obviously better than a 4% one.