A parent is applying for a Federal Direct PLUS Loan to help cover their child's educational expenses. What is a key eligibility requirement for the parent?
A
The parent must demonstrate financial need based on the FAFSA.
B
The parent must not have an adverse credit history.
C
The parent must be enrolled in an eligible program at least half-time.
D
The parent must have a co-signer if their income is below a certain threshold.
✓ Correct Answer: Option B
Eligibility for a Direct PLUS Loan is primarily based on the borrower's credit history. Unlike other federal loans, PLUS loan borrowers generally cannot have an adverse credit history, though there are options for endorsers.
💡 Why is B) the correct answer?
The correct answer to the question "A parent is applying for a Federal Direct PLUS Loan to help cover their child's educational expenses. What is a key eligibility requirement for the parent?" is Option B: The parent must not have an adverse credit history..
The other options — A) The parent must demonstrate financial need based on the FAFSA., C) The parent must be enrolled in an eligible program at least half-time., D) The parent must have a co-signer if their income is below a certain threshold. — are incorrect for this College Advising question. As explained above: Eligibility for a Direct PLUS Loan is primarily based on the borrower's credit history. Unlike other federal loans, PLUS loan borrowers generally cannot have an adverse credit history, though there a…
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