Question

Sheila receives a merit scholarship to cover part of her private college tuition. Her parents have a low income, poor credit, and want to apply for a PLUS loan to cover her expenses. Will her parents qualify for a PLUS loan? Why or why not?
A.
Sheila's parents may not qualify for a PLUS loan if they have poor credit history.
B.
Sheila's parents may not qualify for a PLUS loan if she's attending a private college.
C.
Sheila's parents will qualify for a PLUS loan because she's attending a private college.
D.
Sheila's parents will qualify for a PLUS loan because of their low income.

Answer 1

Answer:

The correct answer would be D, Sheila's parents will qualify for a Plus loan because of their low income.

Explanation:

PLUS loan stands for Parents Loan for Undergraduate Students. It is the loan given to the parents of the students who are graduating with the college. It can be a post secondary loan. This loan is given to the students who cannot afford to meet the expenses of their studies as well as of other activities like books, notes, handouts etc. This loan is given to the parents of the students who have low incomes and can't afford to finance their child's education.