If federal aid, along with scholarships, state grants, tuition waivers and personal savings is not enough to cover your student's educational expenses, parents may wish to consider borrowing a parent loan. Below you will find information which should help guide you as you decide whether a parent loan is right for you.
What is a Parent Loan?
Parent loans are non-federal, interest-bearing loans through private lenders where the parent or other creditworthy individual is the borrower. Approval is not guaranteed and the borrower may be required to be creditworthy. There are a variety of parent loans available and it’s up to the borrower to choose the one that is best for them.
Who is eligible?
Parent loans are available to parents and other creditworthy individuals who wish to borrow to help the student finance their education. Lender requirements may vary; contact the lender directly for all eligibility requirements.
Federal Direct PLUS Loan
The Federal Direct PLUS Loan is a long term, fixed rate loan that parents can use to help pay educational expenses for their dependent undergraduate student. Parents may borrow up to the cost of the student's attendance minus other financial aid. Students must be enrolled at least half-time. The Department of Education is the lender. This loan does accrue interest beginning on the date of the first disbursement. There is an origination fee. To apply the Federal Direct PLUS Loan visit https://studentaid.gov/understand-aid/types/loans/plus
FASTChoice (Private Loan Comparison Tool)
NDSU offers an online loan comparison tool for you to use called FASTChoice. FASTChoice is designed to assist you in making the education loan choice that is best for you. FASTChoice is not a lender. Select the link for Parent - Private Loan Options to view only parent loans. Please keep in mind that you may select any lender of your choice, even if they do not appear on FASTChoice.