The grace period is usually six to nine months, depending on the loan type. A guarantee agency also provides public information about student loans, keeps permanent records of all loans made through it, enforces state and federal rules, and collects on defaulted loans. The lender is the financial institution that provides the funding for student loans, and includes commercial banks, federal savings banks, savings and loans, and credit unions. It gives information about the loan, including guarantee and insurance fees, and the interest rate. Documentation of the situation is required and eligibility is determined by the guarantor.
PLUS loans are federal educational loans for parents of dependent undergraduate students.
Parents may borrow up to the cost of education , minus any other financial aid received. PLUS loans may be used to replace the expected family contribution . It lists rights and responsibilities, and the terms and conditions of the loan. A policy determined by schools, in conjunction with federal guidelines and regulations. Students must maintain academic progress to continue receiving financial aid, including loans.