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Standard Loan Agreements

A parent plus loan, also known as a “Direct PLUS Loan,” is a federal student loan obtained by the parents of a child who needs financial assistance for school. The parent must have a healthy creditworthiness to obtain this loan. It offers a fixed interest rate and flexible credit terms, but this type of loan has a higher interest rate than a direct loan. Parents would usually only get this credit to minimize the amount of their child`s student debt. Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to immediately repay the loan (both the principal and all accrued interest) if certain conditions occur. The lender should only have the right to demand repayment of the loan if an event of default has occurred and continues. If the omission has been corrected or rescinded, the lender should cease to do so. A person or organization that practices predatory loans by calculating high interest rates (known as the “credit shark”). . . .

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Deepak Kamboj

Deepak Kamboj is a Solution Architect and Technology Enthusiast, located at Redmond, WA, having 14+ years of hands on experience in the IT industry.

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