Federal Parent PLUS Loan
The Federal Parent Loan for Undergraduate Students (PLUS) helps parents assist with their student’s educational costs. PLUS loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.
Parents can generally borrow the difference between the university's cost of attendance minus the student's other financial assistance. Filing the FAFSA is not a prerequisite for borrowing a PLUS loan, but families are encouraged to complete a FAFSA, so the student can be considered for the maximum aid they may be eligible for.
The PLUS interest rate is a fixed rate and is set July 1st of each year. For the 2007-2008 academic year the interest rate is 8.5%. PLUS loans are subject to a 3% origination fee. The repayment period for a PLUS Loan begins on the date of the final disbursement of the loan, and the first payment is due within 60 days after the date the loan is fully disbursed. Although repayment doesn't begin until after the final disbursement, interest does accrue while the student is enrolled.
Application Process
- PLUS loans (Parent Loan for Undergraduate Students) are available for parents to help meet the financial needs of dependent undergraduate students.
- Parents who wish to borrow under the PLUS program must be pre-approved from the lender of their choice.
- After being pre-approved, parents must complete and submit a PLUS Request Form.
- After submitting the PLUS Request Form, the parent will receive a PLUS Master Promissory Note from their lender, which must be signed and returned directly to the lender.
- Parents must complete the lender pre-approval and PLUS Request Form every year in order to obtain a Parent PLUS loan.