🏫 College Advising

Which of the following is a key difference regarding the borrower's responsibility between a Federal Direct Parent PLUS Loan and a Federal Direct Stafford Loan?

A Stafford Loans require a credit check, while PLUS Loans do not.
B Parents are the sole borrowers responsible for repaying a PLUS Loan, while students are the primary borrowers for Stafford Loans.
C PLUS Loans have fixed interest rates, whereas Stafford Loans have variable rates.
D Stafford Loans are only for undergraduate students, but PLUS Loans can be for graduate students.

✓ Correct Answer: Option B

For Parent PLUS Loans, the parent is the borrower and solely responsible for repayment. For Stafford (Direct) Loans, the student is the borrower. Both have fixed rates.

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