Pay for college with a parent loan vs a student loan
Student loans are one of those things that everyone, or almost everyone, is going to need to get. Parents want to be able to pay for their children’s entire college and university education but with the rising costs that is getting harder and harder to do. There is an option that you and your family can use in place of student loans however, and this option is a parent loan.
Parent loans are loans that the parents of a student can get in order to pay the tuition for college. If your son or daughter is planning on going to college then he or she will still want to apply for student loans but the parent loans can supplement this financial aid wonderfully. They can take some of the burden off of the student. This way once they have graduated they will not have so much debt resting on their shoulders. Parent loans can even be used to buy the things that the student loans may not cover.
There is more than one place to get a parent loan to help with the costs of college. You can get a parent loan from your regular bank or straight from the government.
Parent loans will need to be repaid much sooner than student loans. They will often require repayment to start at soon as 90 days after the loan has been taken out. The repayment schedule is not a grueling one, you can take as long as 10 years to pay back the money from the parent loans. Talk to the lender about what kind of repayment schedule is right for you and your situation.
What makes parent loans so wonderful is that they are never the responsibility of the student. If a parent does not pay the loan payments on time this will have no bearing on the child’s education or credit. This makes them a favorite among many families. Parent loans are a great option that you should learn more about if you have a child that is getting ready to go off to college.