The Parent Loan for Undergraduate Students or PLUS Loan may be taken out by parents of dependent undergraduate students and by graduate or professional school students. It is an affordable, low-interest loan designed to help students and parents pay for a college education. This is a government loan meaning that it is guaranteed (or insured) by the federal government. Schools that participate in the William D. Ford Federal Direct Loan (Direct Loan) Program offer PLUS Loans.
The maximum amount borrowed may not exceed the total cost of attendance minus any other financial aid received. If the cost of attendance is $6,000, for example, and a student receives $4,000 in aid, only $2,000 may be borrowed. The cost of attendance may include tuition and fees, room and board, books and supplies, transportation, and miscellaneous educational expenses. The student's school will determine and certify this amount.
Interest Rates and Fees
- - For Direct PLUS Loans first disbursed on or after July 1, 2014, and before July 1, 2015, the interest rate is 7.21%.
- - For Direct PLUS Loans first disbursed on or after July 1, 2015, and before July 1, 2016, the interest rate is 6.84%.
- - These are fixed interest rates for the life of the loan.
Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out).
However, if you are a graduate or professional student, your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.
If you are a parent borrower, you may contact your loan servicer to request a deferment
- - while you or your child are enrolled at least half-time and
- - for an additional six months after your child ceases to be enrolled at least half-time.
If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.
Last Edited: May 2015
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