Federal Parent Loan for Undergraduate Students (PLUS)
Federal Parent PLUS Loans are loans available to parents of dependent students. Unlike the Stafford Loans for students, the PLUS loan is not guaranteed. A credit check will automatically be completed based upon receipt of your PLUS Loan Request Form. The PLUS Loan allows parents to borrow funds up to the student’s cost of attendance after deducting any financial aid received by the student.
Completing the PLUS Loan Application Process you must:
If parent(s) are denied PLUS Loan based on credit, the student may be eligible to borrow an additional Unsubsidized Stafford Loan by filling out a Change Request Form.
Interest Rate: -
Academic terms beginning after July 1, 2006 is a fixed 7.9%.
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Loans disbursed prior to July 1, 2006 have a variable rate which is adjusted each year on July 1, but capped at 9%.
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PLUS loans are charged a 4% processing fee by the lender which reduces the total amount applied against the students account.
Repayment -
Begins 60 days after the loan is fully disbursed in an academic year.
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Interest begins accruing after the first disbursement.
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Standard repayment is 10 years, but there are other options available.
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Loan repayment calculator
| PLUS Loans |
| Need Based | No |
| Interest | Begin repayment after first disbursement |
| Capitalized | Yes, if not paying on interest |
| Enrollment | At least half time |
| Contact for loans 2007 and prior | Great Lakes Higher Education Corp.1-800-377-9095 |
| Contact for loans in 2008 | Direct Loan Servicing Center 1-800-848-0979 |
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