The Parent Loan for Undergraduate Students (PLUS) is an affordable, low-interest loan designed to help parents pay for their child's undergraduate education. 

Parents can borrow up to the student's total cost of education minus the student financial aid awarded. This total cost can include tuition and fees, room and meals, books and supplies, transportation, and more.

Loan Program Benefits

• Rapid eligibility and determination including pre-approval in minutes
• Borrow up to the total cost of attendance minus other aid received
• Eligibility is not based on household income or financial need all parents may apply

PLUS Benefits and terms

• Your parents must complete and submit a PLUS loan application and will be required to pass a credit check.
• If your parents are denied, they will need to seek an endorser (relative or friend who will be able pass the credit check) so your parents can be approved.
• An endorser's role is to repay the loan if your parents fail to do so.
• A credit check may not be necessary if your parents can demonstrate extenuating circumstances and hardship.

Borrowing Limits

On a PLUS Loan parents can borrow equal to your cost of attendance minus any other financial aid received. So if your cost of attendance is $8,000 and you receive $6,500 in financial aid, your parent can take the PLUS loan for the $1,500 difference.

What is the Interest Rate?

The Federal PLUS loan is calculated by using the 91 day -Treasury bill + 3.10%. From July 1, 2006 till June 30, 2007 the interest rate is 8.50%. This is a fixed rate that is adjusted each year on July 1. It caps at 9.00%

Repayment

Standard Payment Plan

You pay the same amount each month for up to 10 years towards the principal and interest of the loan. The minimum payment amount is at least $50 per month.

Graduated Payment Plan

You begin repaying your loan with a lower payment and increase that amount after two to four years. The minimum payment amount is at least $50 per month.

Income-Sensitive Payment Plan

You may repay your loan based on your gross monthly income. You must show income documentation annually and additional documentation may be required.

Extended Payment Plan

You may take up to 25 years to repay your loan if you received your first loan after October 7, 1998 and your combined loans totals $30,000 or more.

PLUS In-School Forbearance

You may request forbearance on your loan payments while your child is enrolled at least half-time for up to 48 months. You must reapply every 12 months and your accrued interest will be capitalized at the end of each forbearance period.

Things to Remember

• U.S. citizens or permanent residents can apply
• It is for parents of undergraduate students enrolled at least half-time
• Available regardless of income or assets
• Your credit will be checked
• Parents do NOT have to demonstrate financial need
• You can take up to 10 years to repay your loan(s)