Which statement accurately describes a key characteristic of the Federal Direct PLUS Loan for parents?
A
It is awarded based on demonstrated financial need.
B
The interest rate is variable, adjusting annually.
C
It requires a credit check of the parent borrower.
D
Repayment automatically begins while the student is enrolled at least half-time.
✓ Correct Answer: Option C
Federal Direct PLUS Loans for parents require a credit check; adverse credit history can impact eligibility. They are not need-based, and repayment can be deferred.
💡 Why is C) the correct answer?
The correct answer to the question "Which statement accurately describes a key characteristic of the Federal Direct PLUS Loan for parents?" is Option C: It requires a credit check of the parent borrower..
The other options — A) It is awarded based on demonstrated financial need., B) The interest rate is variable, adjusting annually., D) Repayment automatically begins while the student is enrolled at least half-time. — are incorrect for this College Advising question. As explained above: Federal Direct PLUS Loans for parents require a credit check; adverse credit history can impact eligibility. They are not need-based, and repayment can be deferred.
📚 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.