On October 14, experts from FinancialAid.com contacted The Prospector in a press release from CEO Mike O’Brian about “Plus” loans currently available to students and the parents of students for continuing education.
According to FinancialAid.com, more than half a million students and their parents turn to “Plus” loans to cover sky rocketing college costs.This year alone nearly six million undergraduate students will require approximately $90 billion in financial aid. The bulk of this aid will be in the form of student loans, with more than half a million students relying on Federal Parent Loans for undergraduate students (Plus loans) to pay for school.
“Whether you’re Bill Gates or someone who is late paying bills you can qualify for a ‘Plus’ loan to pay a hundred percent of school costs for tuition: room and board; computers; books and vacation trips for the holidays,” said CEO Mike O’Brian of FinancialAid.com. Additionally, O’Brian stated that interest rates are as low as 2.22 percent.
Unlike scholarships or grants, loans have easy credit requirements; parents can borrow up to 100 percent of the estimated cost of their son’s or daughter’s college attendance, including tuition; room and board; books; travel and other expenses-minus any other financial aid awarded to the student. Parents can borrow funds retroactively to cover costs already accrued by the student for the current year. The Plus loan is tax deductible for certain families.
Many Yuba College students are unaware of the financial aid available because the EOP&S and Financial Aid departments of Yuba College have established an ongoing policy to advise students against initiating an application for loans during the first years of college.
In an interview with EOP&S specialist, David Perez, he said, “It is a fine line. A student should not be discouraged from continuing their education, but a Student loan should be the last resort. If it’s the only recourse to stay in school, then get one. However, students have to pay back the loans. Grants are free.”