Question

what limitation applies to federal plus loans? no credit check is required. they are available only to undergraduate students. interest does not accrue while the student is in school. a credit check is required.

Explanation:

Federal PLUS loans (Parent Loans for Undergraduate Students) are federal student loans that parents of dependent undergraduate students can use to help pay for education expenses. One of the key aspects is that a credit check is required. If the parent has an adverse credit history (with some exceptions for certain derogatory marks), they may not be eligible for the PLUS loan.

• "No credit check is required" is incorrect as a credit check is a part of the eligibility process.
• "They are available only to undergraduate students" is wrong because PLUS loans are for parents of undergraduates (not for the undergraduate students themselves in the sense of being the borrower; there is also a Grad PLUS for graduate/professional students).
• "Interest does not accrue while the student is in school" is incorrect. For Federal PLUS loans, interest starts to accrue as soon as the loan is disbursed.

Answer:

A credit check is required.