Which Direct PLUS loan provider should I choose for freshman student?

There's actually a common misconception here - Direct PLUS loans are federal loans administered through the Department of Education, not private companies. You apply directly through StudentAid.gov, and the loan is then serviced by one of the federal loan servicers like Nelnet or MOHELA. The interest rate is standard (currently 8.05% for the 2023-2024 academic year) and doesn't vary between servicers. You don't get to pick the servicer - it's assigned to you after the loan is processed. What your financial aid office sent you was likely a list of private student loan options, which are completely different from federal Direct PLUS loans.

my daugter started last year and i did the plus loan thing. its all the same intrest so dont waste time comparing companies. just go to studentaid.gov and fill out the application its pretty fast

As others mentioned, Direct PLUS loans are federal loans with standardized terms. For the 2025-2026 academic year, the fixed interest rate will be determined in May 2025 (based on the 10-year Treasury note plus a fixed margin). Important things to know: 1. Credit check required (but standards are less strict than private loans) 2. 4.228% loan fee deducted from disbursement (so borrow accordingly) 3. You can defer payments while your student is enrolled at least half-time 4. Income-contingent repayment options available if you consolidate Start at StudentAid.gov using the same FSA ID you used for the FAFSA.

I got confused by this too!!! The list they sent you is probably for private loans which are COMPLETELY DIFFERENT from federal Parent PLUS loans! Private loans usually have variable interest rates and fewer protections. I almost made this mistake last year with my son. Also be careful because the Parent PLUS interest rate is pretty high compared to other federal loans your daughter might have qualified for directly. Make sure you've maxed out her direct subsidized/unsubsidized loans first before taking PLUS loans in your name.

I was in your exact position last year! The financial aid office was completely unhelpful when I called, and I spent HOURS on hold with the Federal Student Aid number trying to get answers about PLUS loans. Finally I found Claimyr (claimyr.com) which got me connected to an actual FSA agent in under 5 minutes instead of waiting on hold forever. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent explained everything about the PLUS loan process and confirmed I was doing the application correctly. Totally worth it for the peace of mind!

LISTEN UP: Before you take out ANY parent plus loans, consider other options. I'm now $78k in debt for my oldest who graduated 2 years ago and struggling to make the payments. These loans are in YOUR name, not your daughter's. If I could do it all over, I would have: 1) Had serious convo about choosing a cheaper school 2) Made her apply for more scholarships (seriously, there are thousands) 3) Considered community college for 2 years first Don't let emotion cloud your financial future.

If you don't pass the credit check for a PLUS loan, you have two options: 1. Get an endorser (similar to a co-signer) 2. Appeal by documenting extenuating circumstances for credit issues If those don't work, there's actually a benefit: your daughter would become eligible for additional unsubsidized direct loans (up to $4,000-$5,000 more per year) since you were denied the PLUS loan. And yes, regarding the loan fee - if you need $10,000 for costs, you'd request about $10,440 to cover the fee that's deducted.

yeah the parent plus loan intrest rate is way higher then the regular student loans. my daughters direct loans are like 5% something and my plus loans are over 8%. wish i knew that before :