As tuition costs increase, college is becoming more expensive. Fortunately, there are financing options available to students and their families after scholarships and grants have been exhausted. Direct PLUS loans (commonly called simply PLUS loans) are one example. Another option is a private student loan from a lender such as ACT 1st FCU.
So which is the better option? Every situation is unique, and there isn’t one right answer. But we can help you break down the differences.
Federal PLUS Loan Basics:
– Taken out in the parent’s name (Parent PLUS loan) or graduate student’s name (Grad PLUS loan)
– Fixed interest rates that stay the same over the life of your loan (but may be higher than private student loan rates in today’s environment)
– Comes with loan fees
– May be eligible for some federal student loan forgiveness programs
Private Education Line of Credit from ACT 1st FCU:
– Taken out in the student’s name, but can include a co-applicant
– Competitive fixed and variable rate options [link to rates – include only the type(s) your CU offers]
– No origination fees
– Line of credit structure that allows you to secure funding for an entire undergraduate career with just one application*
Have more questions? Click here and learn more with our comparative guide.
Ready to get started with a private student loan? Apply today!
*Subject to annual review and credit qualification. Must meet school’s Satisfactory Academic Progress (SAP) requirements.
