College Financial Aid

Today, financial aid officers and financial advisors often recommend PLUS loans (Parent Loans for Undergraduate Students) to families looking to bridge the college affordability gap.

Unlike scholarships or grants, PLUS loans are not need-based. Parents can borrow up to 100% of the estimated cost of their child s college attendance, including tuition, room and board, books, transportation and additional expenses, minus any other financial aid awarded to the student and they can do so retroactively to cover educational costs they ve already incurred for the current school year.

Other PLUS loan benefits include tax deductibility of PLUS loan interest payments and a favorable interest rate. Many people take advantage of the PLUS loan due to the low interest rates and favorable repayment terms. With simple interest rates as low as 2.22%, many families place the money that they were going to use for college into investments that earn more compounding interest.

Selecting the best college funding options for your family will depend on your specific financial circumstances and personal preferences. In the end, most families pay their portion of college costs using some combination of disposable income, savings, and long term financing.