🏫 College Advising

A parent is seeking a federal loan to help cover their dependent child's college expenses. Which of the following is a key characteristic of a Federal Direct PLUS Loan for parents?

A Eligibility is primarily based on the parent's financial need.
B The interest rate is fixed, and repayment typically begins immediately after disbursement.
C The loan can be disbursed directly to the parent, bypassing the student's account.
D A credit check is required for the parent borrower.

✓ Correct Answer: Option D

Federal Direct PLUS Loans for parents require a credit check to ensure the borrower does not have an adverse credit history. While other factors apply, the credit check is a distinctive feature.

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