PLUS Loan
PLUS loans offer a 7.9% fixed interest rate and a 4% origination fee based on the amount borrowed. The origination fee is deducted from the amount requested and the net amount is disbursed to the student. For example, on a $10,000 loan, there will be a $400 origination fee ($10,000 x 0.04), and the net amount disbursed will be $9,600 ($10,000 - $400).
Please note: For more information regarding the Parent PLUS Loan deferment option, please click here.
Please note: for Parent PLUS loans set up and approved after July 1, 2008, the parents may choose to have the loan deferred while the student is enrolled at least half time. Repayment will then begin once the student ceases to be enrolled at least half time.
The repayment period will initially be set under the standard repayment plan, which is a 10-year term; however, there are other repayment plans available. There is no grace period. Deferment and forbearance options are available for specific situations. Grad PLUS loans can be consolidated with existing federal student loans, but Parent PLUS loans cannot be consolidated with the dependent's student loans. For more information regarding this option, please go to http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp?tab=funding.
PLUS Loan Denial: In the event that a Parent PLUS loan is denied, the student may borrow an additional federal unsubsidized loan, up to $4,000 for freshmen and sophomores and $5,000 for juniors and seniors. Students need to request these funds in writing after receiving notification of the denial. PLUS loan denials do not carry over to the following year; the PLUS loan must be applied for each year.
