PLUS Loans

Federal Parent Loans for Undergraduate Students (PLUS) are borrowed in the name of the parent and interest is capped at 9 percent. Parents can take out a PLUS Loan to help pay for education expenses of their dependant,undergraduate students who are enrolled at least half time. Parents must have an acceptable credit history.

Repayment of Parent PLUS loans usually begin 60 days after the first or second disbursement. The standard repayment period is 10 years. You may borrow up to the cost of attendance minus other financial aid including loans. Selecting a lender for a direct Parent PLUS is the same as for the Stafford loans. If your school participates in Direct Lending, your lender will be the federal government. If you borrow through FFELP you will need to select a lender.

PLUS Loans for graduate or professional students (Effective July 1,2006)
Graduate or professional students are now eligible to borrow under the Federal Grad PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The same terms and conditions as those for Parent PLUS Loans also apply to Graduate/Professional PLUS loans, including good credit, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5 percent in the FFEL program and 7.9 percent in the Direct Loan program. Applicants for these loans are required to complete the FAFSA. They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.