LIFE AFFAIRS

If you’re the parent of a child who’s planning to attend college, you should be aware of student loans you may be eligible for to help fund the cost of their education. One of the biggest advantages of student loans for parents is the amount that can be borrowed. While students are limited in the amount of federally guaranteed loans they can borrow, parents of students are generally eligible to borrow considerably more.

Another advantage of student loans for parents is the relatively low fixed interest rates that are available. Unless parents are able to secure a very favorable home equity loan rate, student loan rates are probably going to be better. In addition, student loans for parents are unsecured debts. Although their credit ratings will suffer if they do not make timely payments, parents don’t stand to lose their home.

Are there any disadvantages to parent loans for students? Some consider it a disadvantage that payments begin immediately and there is no grace period for parent loans. Other types of loans generally also require payments to start right away, however. Parents can take advantage of a student loan payment calculator to determine how affordable their payments will be.