INFORMATION FOR PARENTS

Federal PLUS Loan

Frequently Asked Questions

Glossary of Financial Aid Terms

Federal Parent PLUS Loan

Federal Parent PLUS Loans are meant to provide parents and stepparents of dependent students with additional funds for education expenses. Under the Federal Parent PLUS Loan Program, creditworthy parents may borrow up to the cost of attendance minus any financial aid awarded to each child who is a dependent undergraduate student and enrolled at least half time. Federal Parent PLUS Loans are made through a lender participating in this loan program. Typically, lenders include banks, savings, and loan associations, credit unions, or other financial institutions. To apply contact American Student Assistance by phone at (800) 999-9080 or online.

The interest rate is fixed at 8.5% for loans disbursed on or after July 1, 2006. For loans disbursed prior to July 1, 2006, the interest rate is variable, adjusted annually, and capped at 9%. Principal and interest payments begin when the second loan disbursement is made. Federal regulations allow a fee up to 4% (3% origination fee and 1% federal default fee) to be deducted from each disbursement of the loan. The net amount is forwarded directly to the University in multiple disbursements (usually one disbursement for the fall term and one for the spring term). Loan proceeds are typically disbursed by electronic funds transfer. If the loan is disbursed by check, the checks are made co-payable to the parent borrower and the University. Parents have up to 10 years to repay their PLUS Loan.