🏫 College Advising

Which of the following is a key distinguishing factor for eligibility for a Federal Direct PLUS Loan (for parents or graduate students) compared to a Federal Direct Stafford Loan?

A Demonstrated financial need
B Enrollment at least half-time
C A credit check
D Submission of the CSS Profile

✓ Correct Answer: Option C

Unlike Stafford (subsidized/unsubsidized) loans, Federal Direct PLUS Loans require a credit check for the borrower (parent or graduate student) to ensure there is no adverse credit history.

💡 Why is C) the correct answer?

The correct answer to the question "Which of the following is a key distinguishing factor for eligibility for a Federal Direct PLUS Loan (for parents or graduate students) compared to a Federal Direct Stafford Loan?" is Option C: A credit check.

The other options — A) Demonstrated financial need, B) Enrollment at least half-time, D) Submission of the CSS Profile — are incorrect for this College Advising question. As explained above: Unlike Stafford (subsidized/unsubsidized) loans, Federal Direct PLUS Loans require a credit check for the borrower (parent or graduate student) to ensure there is no adverse credit history.

📚 About This College Advising Practice Question

This 2-level College Advising question from the Financial Aid & Scholarships topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free College Advising practice test or use flashcards for spaced repetition review.

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