Financial Aid >
PLUS Loan
PLUS Loan
How do my parents apply for a PLUS Loan?
Your parents complete a FFEL (Federal ) PLUS Loan application, available from your school. After the school completes its portion of the application, it must be sent to a lender for evaluation.
What are the borrowing requirements my parents have to meet?
Generally, they have to pass a credit check. If they don't pass, they might still be able to receive a loan if they can demonstrate that extenuation circumstances exist, or if someone they know-who can pass-agrees to endorse the loan and promises to repay it if your parents don't.
Are there any other requirements?
You must meet the general eligibility requirements for federal student aid, and your 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 FSA program.
Do they need to find a lender?
Yes, your parents will need to contact your school for the list of lenders. There is an online process to filing the credit check and the PLUS Loan application through your shcool.
How much can my parents borrow?
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Eligibility
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Award Amounts
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Interest Rate
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Linder/Length of
Repayment
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Parents of dependent undergraduate students enrolled at least half-time must not have bad credit history
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Student's Cost of attendance - Other aid student receives = Maximum loan amount
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Changes yearly; for 2007-2008 was 8.5 percent for loans in repayment; government
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Same as for Stafford Loan Program
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Do they get the money or do I?
Your school first receives the loan funds and applies the loan funds to your student tuition, fees, room and board, and any other school charges. If there are any loan funds left over, your parents will receive them by check through the mail, unless they authorize the funds to be released to you. Any remaining loan funds must be used for your education expenses.
Can my parents cancel their loan if they change their minds, even if they've signed the promissory note agreeing to the loan term?
Yes, they can cancel just as you can.
Other than interest, is there any other charge involved with a PLUS Loan?
Your parents will pay a fee of up to 4 percent of the loan, just as you would for a Stafford Loan.
When do my parents begin repaying a PLUS Loan?
Generally, within 60 days after the loan is fully disbursed (paid out) to your school. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. Your parents must begin repaying both the principal and interest while you're in school. Your parents have nearly all the repayment options that Direct and FFEL Stafford Loan borrowers have.
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