William Ford Loan and No Cosigner Student Loans

No Cosigner Student Loans

William D Ford Loan

Federal Direct PLUS Loans are not no cosigner student loans, but need to be explained here because they are a part of the William D Ford Federal Direct Loan Program and normally most federal student loans are no cosigner student loans. The PLUS loan within the Ford Student Loan Program is not, but the Ford Stafford Student Loans – FFEL and Direct Loans, are indeed no cosigner loans and do not require a cosigner to participate to insure approval of the loan.  Credit is important in qualifying for the Federal Direct PLUS William Ford Loan. Bad credit will exempt the applicant from obtaining this loan program. Let’s take a closer look at the Direct PLUS student loan program in more detail.

Federal Direct PLUS loans differ from other student loans in that these loans are typically applied for by the parent of a college student. As mentioned previously these loans are a part of the William D. Ford Federal Direct Loan Program. There are many conditions that must be met before a parent is eligible for this type of loan.

Federal Direct PLUS loans or the William Ford PLUS Loan, are made available to parents who have a dependent child enrolling in school. The student must be classified as a half time or full time student, at a school that is eligible for the loan program. Most accredited colleges and universities are eligible. You must also be enrolled in an eligible program, and your school counselor can tell you if your program of study is an eligible program.

Unlike other student loans, the credit history and credit rating of the parent that applies for the loan matters a great deal. If the parent has anything less than excellent credit, the William Ford Loan will not be approved. This is the reason why it’s not to be used for no cosigner student loans, because if credit is bad a cosigner will be required to sign on the loan.

It is also important to note that a Direct PLUS loan is not the same as an FFEL PLUS loan, and your parents cannot apply for both loans at the same time. The loan application is available from the financial aid office at eligible schools. The parent fills out the application and returns it to the school. The school then fills out the information required of them, and sends the application to the US Department of Education.

Unlike FFEL PLUS loans, the direct PLUS loan does not require a private lender. The money is loaned directly from the Department of Education. The amount of the Federal Direct PLUS William Ford Loan is determined by taking the cost of tuition and subtracting other financial aid that you have or will receive. If approved, the funds are sent directly to the school. If there are any remaining funds after the school takes their share, those funds will be sent to the parent, and not the student, but those funds must be used for the education of the student. This loan is especially good to use when other no cosigner student loans are not sufficiently covering the students total college bill, therefore necessitating more funds to cover them.

What makes William Ford Direct Plus loans better than other types of private loans is the fixed rate of interest. The interest rate for this type of loan is determined on July 1st of each year, and the parent is locked into that interest rate – it cannot change for the duration of the loan. However, the borrower will pay a fee each time a loan disbursement is made to the school. This fee is 4% of the loan amount and this money are taken out of the disbursement automatically.

There are two options for repaying the Federal Direct PLUS William Ford Loan. The parent can choose to start making payments sixty days after the loan is approved, or they can opt to start making payments after the student has graduated or stopped attending the school at least half time.

Finally, it is important to note that parents are not the only people able to apply for Federal Direct PLUS loans. If you are an independent graduate student, you can also apply for and receive this type of loan; however the same rules that apply to parents also apply to you. Remember, the Federal Direct PLUS William Ford Loan will not work for no cosigner student loans because bad credit will exempt students from this federal student loan program.

Guidelines on No Cosigner Student Loans for Students.
Other Federal Loans that are not No Cosigner Student Loans.
William Ford Loan Program.
More on Federal Direct PLUS Loans (Parent Loans) made available through the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan (Direct Loan) Program.
Questions & Answers on the William Ford Student Loan – Direct PLUS Loans for Graduate and Professional Students.

13 Comments.

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