Which of the following is a key eligibility requirement for a parent to obtain a Federal Direct PLUS Loan for their dependent undergraduate student?

A The parent must demonstrate financial need.

B The parent must have a satisfactory credit history.

C The student must be enrolled at least half-time in a graduate program.

D The parent must have defaulted on a previous federal student loan.

✓ Correct Answer: Option B

Unlike other federal student loans, eligibility for a Federal Direct PLUS Loan for parents (Parent PLUS) is contingent upon the borrower (the parent) not having an adverse credit history. Financial need is not a requirement for PLUS Loans.

💡 Why is B) the correct answer?

The correct answer to the question "Which of the following is a key eligibility requirement for a parent to obtain a Federal Direct PLUS Loan for their dependent undergraduate student?" is Option B: The parent must have a satisfactory credit history..

The other options — A) The parent must demonstrate financial need., C) The student must be enrolled at least half-time in a graduate program., D) The parent must have defaulted on a previous federal student loan. — are incorrect for this College Advising question. As explained above: Unlike other federal student loans, eligibility for a Federal Direct PLUS Loan for parents (Parent PLUS) is contingent upon the borrower (the parent) not having an adverse credit history. Financial n…

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Which of the following is a key eligibility requirement for a parent to obtain a Federal Direct PLUS Loan for their dependent undergraduate student?

✓ Correct Answer: Option B

📚 About This College Advising Practice Question

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