Would your family prefer to pay all, or part of your cost with a parent loan?

A Federal 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 8.5%.

Apply by June 30, 2008

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 3% 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 Guaranteed Student Loan program, 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