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DIVISION OF STUDENT FINANCIAL AID |
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Federal PLUS Loans enable parents with good credit histories to borrow funds to pay the education expenses of each child who is a dependent undergraduate student. Students pursuing a graduate or professional degree with good credit histories can also borrow from the PLUS Loan program. PLUS Loans have fixed interest rates of 8.5% starting with PLUS loans disbursed after July 1, 2006. A fee of up to 4% of the loan can be deducted proportionately from each disbursement. Generally, repayment begins on the date of the last disbursement of the loan. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. In most cases, the borrower must begin repaying both principal and interest while the student is in school. However, the parent has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis. The parent must request this option by contacting the lender. The student must meet general eligibility requirements for federal student aid and be enrolled at least half time (4 hours-undergraduate). If a parent is borrowing on behalf of a dependent undergraduate student, parents must also meet some of these general requirements. For example, they must be citizens or eligible non-citizens and may not be in default or owe a refund to any Federal Student Aid program. You will automatically be awarded a PLUS Loan if you have eligibility. If you have already received an award letter which includes a PLUS Loan, you will need to proceed to Step 2 - Applying for the PLUS Loan.
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