Federal Parent PLUS Loans

The Federal PLUS loan is a credit-based loan available to parents of undergraduate students. Parents who are approved may borrow up to the full cost of their student's education, minus other financial aid. The Parent PLUS loan interest rate is a fixed 8.5%. There is a 3% origination fee plus a 1% default fee charged by the federal government. There are lenders and guarantors who may pay all or a portion of the default fee for loans guaranteed July 1, 2009—June 30, 2010.

Repayment on Parent PLUS loans begins within 60 days after the final disbursement of the loan. Please contact your lender for more information.

How to Apply for a Parent PLUS Loan

• Complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for other financial aid such as grants, Stafford Loans, and scholarships.*
• Student must enroll in at least 6 undergraduate credit hours
• Have a completed financial aid file.
• Student must maintain satisfactory academic progress.
• Choose a lender and apply for a Parent PLUS loan. Refer to the UCCS Suggested PLUS Lender List for more information

Deferment, forbearance and cancellation

PLUS loan borrowers qualify to defer their loan payments if the parent is:

• in school
• under specific economic hardships
• unemployed
• on active duty in the military

Parent PLUS loans that were disbursed after July 1st, 2008 may be defered while the student is enrolled at least half-time.

PLUS loan borrowers who don't meet any of the above criteria, but who still are having difficulty making their loan payments, may appeal to their lender for forbearance to temporarily reduce or delay their loan payments. In either case, interest will continue to accrue during the period of deferment or forbearance. Please contact your lender for more information

* Parents may apply for a Parent PLUS loan for a student who has not submitted a FAFSA, however, the student will not be considered for other federal aid.