Parent PLUS Loans

— Detail Information —

Available to the parents of dependent undergraduate students enrolled at least half time in an eligible program at an eligible school

The student must meet certain criteria in order qualify for financial loan assistance:

view student eligibility requirements

The school's Financial Aid Office will determine the student's dependent or independent status.

General guidelines state that students who are "independent" from their parents or guardians for basic living expenses will be eligible for Independent loan limits. Students who are "dependent" upon their parents or guardians for basic living expenses will be eligible for Dependent loan limits:

link to view student dependency status

Parents may borrow up to the cost of attendance minus the amount of any financial aid received

(including received Stafford loan amounts)

Borrowed funds will be paid directly to the school from the lender or by the Federal Government under FDSLP.

The school will first use the money to pay your child's tuition and fees. Any remaining loan money is credited to your child's account or paid to the parents directly. The school must notify the parent of all credited funds.

PLUS loans are fixed rate loans with an upper limit,

meaning that the rate will remain fixed for term of the loan. Fixed rates are applicable for all loans disbursed after July 01, 2006.

view current PLUS Loan rates:
click here for rates

view rate structure as set by the Federal Government (download docs): www.fp.ed.gov

You may be required to pay up to 4% processing fees

to the lender upon loan disbursement. Portion of these fees go the Federal Government and another portion to a guaranty agency to help reduce the cost of issuing the loans.

Generally these fees are deducted proportionately from each loan disbursement.

You may cancel the loan within 14 days after you receive written notification that funds have been credited to your child's account. Contact the school's financial aid office for cancellation terms.

Repayment begins 60 days after loan funds have been disbursed to the school —

deferments may be available for parents (the adult students) who are attending school at least half-time.

The repayment period is 10 years under one of the following plans:

1. Standard Repayment Plan:
   you pay a fixed amount per month
   
   
2. Graduated Repayment Plan:
   you begin payments that are low (equal to the interest accrued) and then increase over time until full repayment
   
   
3. Income-Sensitive Repayment Plan:
   the monthly payments change based upon annual income
   
   
4. Extended Repayment Plan:
   allows new borrowers on or after 10/7/98 with a total FFELP debt of at least $30,000 (FDSLP loans offer other repayment terms) to repay their loan (either fixed or graduated) for up to 25 years.
   
   You can consolidate your loans with extended repayment terms if you qualify. See our affiliated student loan consolidation site: click here
   

The PLUS loan is available only to parents who can pass a credit check;

if the parents fail to pass the credit check, they may receive the loan if someone with a good credit history co-signs for the loan or if the parent can show extenuating circumstances.

Interest paid on student loans qualify a tax reduction

borrowers who file tax returns can deduct some of the interest paid on their student loans. Taxpayers who have taken out loans to pay for the cost of attending an accredited college for themselves, a spouse, or a dependent may be eligible for this deduction.

see IRS tax publication for more information:
tax benefits of higher education

For more information:

steps in the application process: reviews the steps required when applying for federal financial aid.

link to the U.S. Department of Education to download the latest version of the Student Guide