Federal PLUS
[How To Apply]
A Federal PLUS is a loan in the parent’s name for a dependent student enrolled at least half time in a degree-seeking program. It is a non-need based loan with the benefit of having a fixed interest rate. PLUS Loans are available regardless of income or assets, and no collateral is required. While the parent borrower does not have to prove financial need, a credit check is required.
A Federal Graduate PLUS is a loan in a graduate or professional student’s name enrolled at least half time in a degree seeking program. The Graduate PLUS Loan carries the same terms and conditions as the Parent PLUS Loan. The borrower should apply for the Subsidized and Unsubsidized Stafford Loan before applying for a Graduate PLUS loan. A credit check is required.
Both PLUS Programs are similar in that:
- The PLUS Master Promissory Note is a valid promissory note for up to 10 years.
- The borrower will need to reapply each year for a new loan to disburse.
|
Grade Level |
Fees |
Interest Rate |
Repayment Begins |
|---|---|---|---|
|
Undergraduate (Parent PLUS) |
4% |
8.5% fixed from the first date |
Begins within 60 days after the final disbursement for the loan period or may be deferred for up to six months after the dependent student ceases to be enrolled at least a half time |
|
Graduate (Graduate PLUS) |
4% |
8.5% fixed from the first date |
When the student is no longer enrolled at least half time |
*Origination Fees and Interest Rates apply to loans disbursed between July 1, 2009 and June 30, 2010