Federal PLUS Loans As a student entering college, it is very unlikely that you have a few spare checks lying around that you can cash and magically use to pay for college. Most college-aged students, ranging from late teens through mid-twenties, have no line of credit and cannot receive much money in loans if they need to do so in order to attend college. Therefore, a loan like the federal PLUS loan through the federal government and U.S. Department of Education makes it easy for you, as a potential college student, to use your parents' line of credit in order to gain financing options for your higher education.

How Your Parents Can Help You Apply If your parents have good credit and you obtain them a copy of the Direct PLUS loan application, you are well on your way to cracking the college books and arriving on campus in the fall. Keep in mind that in order to receive a federal PLUS loan, you must be a dependent potential undergraduate at any college or university in the U.S. You also must be planning on attending college for at least half-time during the upcoming semester. If these all apply to you, obtain a Direct PLUS loan application and promissory note, fill them out with signatures completed, and hand them in to the financial aid office at your college or university.

Fill Out A FAFSA Form First! Have you tried filling out your FAFSA form yet? If not, you may already be entitled to financial aid and/or loans and scholarships that could benefit you! While it is not required for you to fill out the FAFSA form to receive a federal PLUS loan, be aware that you could receive thousands of dollars without even having to use your parents' credit in the first place. Still, if you are not eligible for any other scholarships, the federal PLUS loan will enable you to receive financing for any portion of your college or university bill not covered by other financial aid (i.e. If college costs you $5000 a year and you already receive $4000 in financial aid, a PLUS loan will lend you the other $1000). Federal PLUS loans can help put you through college, even if you do not have a solid line of credit yet.