Federal Direct PLUS Loan for Parents
The Federal Direct PLUS Loan for Parents is a credit-based loan that parents may borrow on behalf of their dependent undergraduate students. Students must be enrolled at least half-time in a degree program to utilize this loan option.
Interest Rate and Fees
The interest rate for the 2015-2016 PLUS loan is fixed at 6.84 percent. Federal Parent PLUS loans are subject to a 4.292 percent loan origination fee at disbursement.
Repayment on the PLUS loan begins within 60 days of the final disbursement, unless the option to postpone repayment until six months following the students graduation is selected.
Maximum Loan Amount
The maximum amount a parent can borrow in a PLUS loan is the total cost of attendance (comprised of tuition and fees, room and board or living costs, books and personal expense allowance) minus all other financial aid.
- Apply for the total amount needed for the entire academic year
- 50 percent of the loan will be disbursed in August and 50 percent in January
- Repayment would begin after January disbursement
- Remember to account for a 4.292 percent loan fee in determining your loan amount
- Have your and your student's Social Security numbers available when you are applying