Federal PLUS Loan
Federal PLUS Loans provide parents of dependent undergraduates with additional funds for education
expenses. 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 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.)
The interest rate is a variable annual rate and is capped at 9%. Rate changes take effect each July 1.
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PLUS Loan Guidelines: |
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- Principal and interest payments begin when the second loan disbursement is made.
- Federal regulations allow a fee of up to 4% 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 checks are made co-payable to the parent borrower and the University.
- Parents have up to 10 years to repay their PLUS Loan.
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