🏫 College Advising

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.

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