October 15, 2009
The Parent Plus loan is a great option for parents to help their children with the cost of education, however, if your student is 24 or older they are viewed as an independent through the schools eyes which means the Parent Plus loan option is not a viable one. However, that certainly does not mean that your student is out of loan options.
If your student is viewed as independent the next best loan option is a private student loan which isn’t the worst thing. Actually, in some ways this loan alternative actually helps the parent because the parent is listed as the secondary borrower on the loan and not the primary. With the Parent Plus loan the parent is the primary. Interest rates are also at historic lows making this a great time to take out a private loan. In addition, repayment does not begin until after the student graduates.