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For a parent federal direct plus loan, why doesn't the student sign the promissory note?
The point of the loan is the to establish that the parents' credit makes them ineligible to cosign for a loan or get a loan in the first place, so technically isn't it the student who is taking out the money. Why does it ask the parents to sign a promissory note?
i think it's a plus loan. The information on it says Federal Direct PLUS Loan Program, so yes. The person I was talking to in financial aid said that if my parents' credit didn't qualify to help me out then I could be eligible for up to $2000 in loans each semester
but this isn't the same loan, this is for students whose parents CANNOT get a loan, so it makes the student eligible for more money.
4 Answers
- 1 decade agoFavorite Answer
The student is only eligible for more money ($4000) if the parent is denied the Parent PLUS loan, if you are approved then the loan is only in your name, if the school is asking you to fill out a promissory note, you may have been approved, and therefore as the other poster said you are the only one responsible for the loan.
Source(s): Student Loan Rep - 1 decade ago
The student isn't actually applying for the loan, just the parents. The student will never be responsible for paying any part of the PLUS loan back. It will never effect their credit, just their parents'.
- Anonymous5 years ago
No. Parent PLUS loans can only go to your parents, not you. Your parents are responsible for repaying them. Payment starts immediately.
