does the PLUS loan reduce the finaid package?

Paying for College
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<p>Hey everybody, I’m not sure what phrase to use to search for an answer to my question on cc, so sorry if this has been answered before, but does getting a PLUS loan reduce the the amount of aid given to a student in their financial aid package?</p>

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<p>bump
10char</p>

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<p>Nope-- Plus loan helps the parents pay for their part of the EFC, and the EFC is separate from the financial aid package (which itself includes other loans). So parents can either get the EFC from their assets and savings, or take out a bank loan, or home equity loan, or if eligible, a Plus loan.</p>

<p>Parents can borrow up to the total cost of attendence minus the financial aid received. Federally insured, variable rate, T-bill rate plus 3% or so. Not need based, but must have reasonably good credit, as I recall. Some defer payment for a number of years. Pretty good deal.</p>

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<p>aite, thanks sblake</p>