Federal PLUS Loans

Federal Direct Parent PLUS Loans (Dependent Undergraduate Students Only)

Parent PLUS Loans are loans taken out by parents of dependent undergraduate students, enrolled at least half-time, to help pay for their child’s college expenses. Parents are responsible for repaying Parent PLUS loans.

Unlike federal loans for students, you must start making payments on your Parent PLUS loans right after they are fully disbursed, with the first payment being due no more than 60 days after disbursement (the time at which funds have been sent to you or the school to pay for the education expenses).

Parents cannot borrow more than the cost of the child’s education or cost of attendance(COA) minus other financial aid received(scholarships, fellowships, grants, federal student loans, private student loans)

 

Basic Eligibility Factors for borrowing Parent PLUS Loans

  • An established financial need
  • U.S. citizenship (or eligible non-citizenship)
  • Student of Parent must enroll at least half-time
  • A valid Social Security Number
  • Filing out the Free Application for Federal Student Aid (FAFSA)

For more information please click here

 


 

Federal Direct Graduate PLUS Loans (Graduate Students Only)

The Grad PLUS Loan is a federal student loan available to students attending graduate school and professional school. The Grad PLUS Loan allows you to borrow up to the full annual cost of attendance (COA) minus other financial aid received (scholarships, fellowships, grants, federal student loans, private student loans).

A cosigner is not required. The borrower for the Graduate PLUS Loan can only be the graduate student, Unless the grad student has adverse credit history. If that is the case then the grad student must find an endorser for the PLUS loan.

 

Basic Eligibility Factors for borrowing GradPLUS Loans

  • A Simple credit check
  • U.S. citizenship (or eligible non-citizenship)
  • Student must enroll at least half-time
  • A valid Social Security Number
  • Filing out the Free Application for Federal Student Aid (FAFSA)

For more information please click here

 


 

Federal PLUS Interest Rates Federal PLUS Fees
Academic Year* Parent Plus Rate Graduate Plus Rate Beginning October 1st of every year
2018-2019 7.60% 7.60% The Origination fee is 4.264%**
2017-2018 7% 7% The Origination fee is 4.264%
2016-2017 6.84% 6.84% The origination fee is 4.276%
2015-2016 6.31% 6.31% The origination fee is 4.272%

*academic year starts from July 1st-June 30th

**Loan Fees are valid thru September 30th, 2018


 

How to Apply for a PLUS Loan

  1. Complete the Free Application for Federal Student Aid (FAFSA).
  2. Complete the PLUS Loan Application and Master Promissory Note at Studentloans.gov*.
  3. Student must enroll at least half-time
  4. Have a completed financial aid file.
  5. Student must maintain satisfactory academic progress.

*The 2018-2019 PLUS Application will be available on studenloans.gov on July 1, 2018


 

Deferment, forbearance and cancellation

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

PLUS loans that were disbursed before July 1st, 2008 may be deferred if the parent borrower is:

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

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 the Federal Direct Loan Servicer 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.