ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

Detailed explanation-2: -The U.S. Department of Education makes Direct PLUS Loans to eligible parents through schools participating in the Direct Loan Program. (We also offer PLUS loans for graduate or professional students.) A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent borrower.

Detailed explanation-3: -To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well).

Detailed explanation-4: -Under PSLF Program rules, if you consolidate your PLUS loans for parents, only qualifying payments you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the PLUS loans for parents before you consolidated them won’t count.

Detailed explanation-5: -Unsubsidized direct loans come with significantly lower interest rates and origination fees. But the amount you can borrow each year is limited to $20, 500. Graduate PLUS loans, on the other hand, let you borrow up to the cost of attendance, which is determined individually by schools.