Federal Direct Parent PLUS Loan
Would your family prefer to pay all, or part of your cost with a parent loan?
A Federal Direct Parent Loan for Undergraduate Students (PLUS) is a low-cost education loan for parents. The PLUS Loan offers excellent repayment terms and a fixed interest rate of 7.9%.
IMPORTANT DATE: Apply starting July 1, 2012.
Advantages of the PLUS Loan include:
- Qualifications for a PLUS are based solely on good credit, and there are no debt-to-income ratio guidelines or employment verification requirements
- Plenty of borrowing power - up to the full cost of attendance minus financial aid. Parent borrowers are charged a 4.0% origination fee. The fee is deducted from the amount borrowed before the college receives the funds
- Flexible repayment terms with up to 10 years to repay the loan, which includes interest-only payments or deferring principal and interest payments for up to four years
- Interest may be tax deductible
- Payments as low as $50 a month
- No penalty for early repayment or payoff
- If the PLUS loan is denied, freshmen and sophomores are eligible for an additional $4000 from the Federal Direct Unsubsidized Stafford Loan, while juniors and seniors are eligible for an additional $5000
- Provides a built-in insurance for death and disability that applies to both the borrower and the student at no additional cost
- Some parents may opt to do a combination of the TuitionPay Payment Plan and Parent PLUS Loan
You can start the application process with the PLUS Loan request form.