When looking for a student loan there are often many ways to proceed. Your first decision will be whether to seek a Federal Student Loan or a private student loan. Federal offers the best terms.

One Federal program to consider is the Parent PLUS Loan. This is a federally sponsored low interest loan made to fund an undergraduate education. What makes the PLUS program different from some of the other student loan programs is that the PLUS loans are made to the parents of the undergraduate student. The parents then take responsibility to transfer the funds to the student or his school. Bear in mind, however, that as of 2006 the interest rate was fixed at 8.5%, a higher rate than other federally sponsored loans.

The PLUS program offers the benefits of a federally sponsored loan while retaining parental control over the funds. But remember, the PLUS program is just one program of many federally sponsored programs available to qualifying students and their families.