You may need to endorse a Grad PLUS or Parent PLUS Loan to help a student or parent pay for the cost of attendance if a credit check reveals the loan applicant has an adverse credit history.
An endorser is like a cosigner on a private student loan – they agree to repay the debt if the student or parent borrower falls behind on their monthly payment. But unlike private lenders, the U.S. Department of Education offers a unique path to easily releasing endorsers: loan consolidation.
Parent PLUS Loans assist parents of undergraduate students, while Grad PLUS loans cater to graduate students. Origination fees apply, and interest begins to accrue upon disbursement.
But what exactly does being an endorser entail? And why is this endorsement necessary?
Ahead, we’ll answer those questions and more.
