Overview

The Parent PLUS Loan offered through WaFd Bank is designed to provide families with an additional source of funds to cover college expenses not met by scholarships, grants, or other loans. It is tailored for parents and legal guardians who want to take responsibility for financing their dependent student's higher education. This loan focuses on simplicity and customer service, combining a straightforward application process with clear repayment choices so families can choose a structure that works for their financial situation.

Who is it for?

This loan is intended for parents or legal guardians of undergraduate students enrolled at an eligible college or university. It is ideal for families who have exhausted federal subsidized and unsubsidized options or who are seeking supplemental funds to cover tuition, fees, room and board, books, supplies, and other education-related expenses. Borrowers should be prepared to demonstrate the ability to repay and provide necessary documentation during the application process.

Key Features

• Borrower: Parent or legal guardian of the enrolled student.
• Use of funds: Tuition, fees, housing, books, supplies, transportation, and other education-related costs.
• Loan amounts: Flexible borrowing limits based on the school’s cost of attendance and existing financial aid.
• Repayment options: Multiple repayment plans, including immediate repayment, deferred repayment while the student is in school, and graduated repayment plans.
• Fixed or variable terms: Depending on program availability, choose a fixed-rate option for predictable payments or variable options where applicable.
• Cosigner availability: Cosigners may be allowed to help qualified applicants secure favorable terms when necessary.
• Disbursement: Funds are typically sent directly to the school to cover billed charges and, if applicable, to the borrower for approved education expenses.

Repayment Options

Repayment flexibility is a hallmark of this product. Borrowers can elect from several repayment patterns:

• Immediate repayment: Begin paying principal and interest right after the loan is disbursed, which minimizes the total interest paid over the life of the loan.
• Deferred repayment: Defer payments while the student is enrolled at least half-time; interest may accrue during deferment depending on the plan.
• Interest-only payments: Make interest payments during enrollment and pay principal after graduation or when deferment ends.
• Graduated repayment: Start with lower payments that increase over time, useful for families expecting future income growth.

Selecting the appropriate repayment plan will affect the monthly payment and the total cost of borrowing. Borrowers are encouraged to review projected schedules and select the plan that aligns with their cash flow and long-term financial goals.

Eligibility and Application Process

Eligibility typically requires the borrower to be a parent or legal guardian of the student, to meet credit criteria, and to submit documentation verifying income and identity. The application process is designed to be straightforward and includes the following steps:

1. Complete an application providing personal, employment, and financial information.
2. Provide required documentation such as proof of identity and income verification if requested.
3. Undergo a credit review; additional requirements or a cosigner may be requested for applicants who do not meet standard credit parameters.
4. Accept the loan terms and select a repayment option prior to disbursement.
5. Funds are disbursed to the school per institutional policies and the approved budget.

WaFd Bank’s lending team aims to process applications promptly and communicate clearly about any additional steps needed to finalize the loan.

Benefits for Families

• Bridges funding gaps: Complements other student aid to cover the full cost of attendance.
• Predictability: Fixed-rate options offer consistent monthly payments and easier budgeting.
• Choice: Multiple repayment plans allow families to match payments with current financial realities.
• Support: Dedicated loan servicing and guidance help parents navigate repayment and manage accounts.
• Potential tax advantages: Interest may be tax-deductible in certain circumstances; consult a tax professional for individual guidance.

Considerations and Responsible Borrowing

Before taking on a Parent PLUS Loan, parents should consider the long-term implications of borrowing. Loans in the parent’s name affect the parent’s credit profile and may impact debt-to-income ratios, which could influence future borrowing. It is important to:

• Borrow only what is necessary for education-related costs.
• Compare repayment scenarios to understand total interest costs under different plans.
• Explore scholarships, grants, and work-study options that do not require repayment before choosing loan amounts.
• Keep careful records of disbursements and communications with the lender and the student’s institution.

Customer Service and Account Management

WaFd Bank provides support throughout the life of the loan, from initial application to payoff. Account management tools include online access to loan balances, payment schedules, and statements. Borrowers may request account assistance, modify payment arrangements when eligible, and obtain amortization schedules to track progress toward repayment. Clear communication and timely assistance are core elements of the service.