PLUS Parent Loans
Program Description
These are the two sources of Plus Loans
- Federal PLUS Loans are made through Federal Family Education Loan (FFEL) Program. While FFEL funds come from private lenders, such as banks and credit unions, they are subsidized and supported by the U.S. Department of Education. You repay a FFEL PLUS Loan to the private lender that made the loan or to its designated agency.
- Direct PLUS Loans are made by the U.S. Department of Education. You repay a Direct PLUS Loan to the U.S. Department of Education.
Whether your school program is a Direct or FFEL PLUS loan terms it is generally the same. The school applies PLUS loan funds toward your child’s educational costs such as tuition, fees, and room and board. If any loan funds remain after school charges are paid, you will receive the remaining amount from the school, unless you authorized the school to release the funds to your child. Any funds you or your child receives must be used to pay the child’s educational expenses.
General Program Requirements
- Be a parent of a dependent postsecondary student who is working toward a postsecondary degree or certificate; and
- Not have an adverse credit history.
Loan Terms
Maximum Loan Amount: Your child’s cost of attendance minus other financial aid. For example, if your child’s cost of attendance is $6,000, and he or she receives $4,000 in other financial aid, you can borrow up to $2,000 in PLUS Loans.
Interest Rate: The interest rate is variable (adjusted annually on July 1), but it does not exceed 9 percent. You’ll be notified any time the variable rate changes. For the current PLUS Loan interest rate.
Maximum Loan Length: up to 30 years, depending on the amount borrowed and the repayment plan chosen. There are a number of repayment plans offered through the Direct and FFEL programs
Application Process
For more information, Select above the Type of Loan that you want.