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Alternatives to Direct PLUS Loans for parents

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As a parent, you may wonder if borrowing for your student's education is best done through Direct PLUS Loans, or if you should pursue other avenues. The following are just some of the differences you'll find between private industry loans and Direct PLUS Loans.

Home equity or private/personal loans

Alternative/private student loans

Some students are opting to borrow alternative/private student loans instead of asking their parents to borrow Direct PLUS Loans. Students can use alternative/private student loans to cover the remaining cost of education after receiving all other forms of available financial aid.

The characteristics of these loans are usually very different from Direct Student Loans: