Understanding the Subsidized & Unsubsidized Federal Direct Student loans & Parent Plus Loans

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This video is about the Subsidized & Unsubsidized Federal Direct Student loans and the Federal Parent Plus Loans. We discuss the Subsidized and Unsubsidized Federal Student loans from completing the Fafsa form. We also go into detail about the Parent Plus Loan. All to help you understand the process and help pay for the college cost.

What types of federal student loans are available?
The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.

Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.

Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

Other videos to check out here:

Understanding the 3 types of student loans to help pay for college

Understanding the College Bill & how to reduce it. Plus what happens if you don't pay it...

529 Plans VS Student Loans VS Payment Plans, what is the right choice?

Take Gap Year leap or head off to College?

Online resources mentioned in the video:
Plus Loan & Master Promissory Note & Entrance Forms

Principia Prep has been around for almost 20 years helping families with the college process both admissions and financial aid.

#College #highschool #loans

Комментарии

The explanation you're looking for starts at minute 2:47 Thank you for this video Ed.

JoudaniMaria

Thank you for everything that you do, especially helping with scholarships and applications. Our daughter is at Bergenfield HS, Bergenfield NJ Class of 2022.

barbarathen

Thank you for the video. Hackettstown High School Class of 2023!

josephbielski

Thanks Ed, very helpful content. My daughter already submitted her FAFSA and received the financial aid summary report which outlines the COA and estimated remaining cost after grants and scholarships. Freshman fall classes already start in mid-August, and was wondering what is the latest to apply for PLUS? Of course, we'll try to do this as early as possible.

davekaneshiro

WOW!! I think you just took a WHOLE lot of stress off of me!! My son is a sophomore and the financial aid office suggested the Parent Plus loan when he went to set up a payment plan.

We have been struggling paying off the balance each term! One parent has low credit score the other excellent, should the low score parent/spouse apply for the Parent Plus loan?

thehumblehygienist

hi Ed, thank you so much for the video, really helpful. We wonder if we should pay it off for 25 years? Which one is better 10 or 25 years?

maido

Thanks for this video Ed! Tons of helpful information on this one. Will be watching this multiple times in the future when it comes time to deal with the loan process. Roxbury High School Class of 2022

robertneumeyer

Jeeze these are really helpful advices, my parents are dumb and would never utilize these concepts. 12:08 - "For obvious reasons", the government really helping future students out here.

ShopperPlug

I'm convinced that state schools and community schools are the way to go. The pickle I am in now is due to my naivety. My ex's new wife at the time, and my ex, played up a particular university out of state, to my child, which was a nice school of course, but at 40K a year. My child could have gone to another nice school, in-state, but would have only cost me approx 4K a year. My ex and I intended to split the tuition, on the upscale university, which we did. I would do anything in the world for my son. If he was convinced that this was the school that he needed to go to, then so be it, in my eyes, although we went on many a tour, and he would have been able to attend all, but one other college. I have clawed my way through much to care for him in any way that I possibly can. Unfortunately, me, not knowing the price of tea in China, and thinking all would be well. Here we are, 12 years down the road, and the payments keep going up and up. It's scary. I'm getting older, and worry about that loan more and more. I had no idea what I was getting myself into, but my ex's wife knew EXACTLY why she was pushing for the higher-priced school. I will not go into details, but she was determined to control the course of the future, unbeknownst to me. Her brother-in-law, married to her sister, a second marriage, did the same thing to his ex. He is a lawyer. I don't begrudge the education or the experience that my son was able to enjoy, and friendships made, due to attending this particular university, but 12 years down the road, and no relief in sight, has me stuck in places I don't want to be. I have no clue how this will work out. I'm going to apply for IDR, but, aside from lowering the payments; how can this change-of-status payment actually re-size the loan in my favor. Trying not to cry here. What to do???? Any sound advice?? Thanks.

allkindsamusicchick

Should the plus loan show on the students credit ? I know you stated that it’s only in the parents name but I believe some of my parent plus loans are on my credit report

Asiahkye

Thanks for the video Ed, it was very informative and helped me fill out my FAFSA. Also nice Spider-Man poster in the background, I'm a big Spider-Man fan LOL

newwaveplus

Thank you for the video! Very helpful! I just got back my FAFSA reward and it tells me that I need $3, 500 in subsidized, $2, 000 in unsubsidized, and $2, 272 in parent plus loan and those are waiting my approval or disapproval. I'm unable to do the parent plus loan because my parents are financially unable to help me through college. What does it mean for me financially if I deny the loan on the tab to "accept award offer"? Is this parent loan required? If my parents are unable to help me, what should I do?

rosiehudak

Thanks for sharing this information. I have yet to understand why I'm being discouraged to take out student loans that are rewarded to me. Why do they offer it, then turn around and tell you that you really should try not to? Such mixed signals. Is it true that if they reward you these loan amounts, that you are actually eligible for them, or they see a financial need for it?

tdw

Hi Ed, I'm a confused about what you said in a couple of videos: If FAFSA says your family can pay $20, 000, and the net price of the collge is $40, 000, you need $20, 000 of aid. But is the maximum loan amount $5, 500? How can you come with the rest of the money. Will they give you other forms of financial aid?

rw

Hey guys,

What if I already graduated from a bachelor's degree and I am interested on pursuing a second bachelor's, will I be able to get an undergraduate loan and the grad plus at the same time?
Will they just aprove the cost of tuition or they will aprove more based on other related expenses?

Thank you!

mythiclunar

I’m lookin for federal spending money can we Get education only or public school

heroldcabanban

So I’m struggling with filling out paperwork for Medicaid because they wanna know how much my student loans are but the paper in the list is so long I don’t know what to put in to the information line.

meganboyer

Excellent excellent info. This answers ALL my questions. So clear. Ed you are awesome.

christyschiller

If the student is 17 can they still can still apply for the federal loan and do the MPN?

msj

Thanks. This really helps to clarify things, re: federally subsidized loans--

katherined.