Home > Financial Aid > Student Loans > Plus Loans

PLUS Loans

The Parent Loan for Undergraduate Students or PLUS Loan is for parents of dependent undergraduate students and graduate or professional school students. PLUS Loans are affordable and have low interest rates. These loans are insured by the federal government. Schools that participate in the William D. Ford Federal Direct Loan (Direct Loan) Program offer PLUS Loans.

Borrowing Limits

The maximum amount borrowed cannot exceed the total cost of attendance minus financial aid received. For example, if the cost of attendance is $6,000 and a student gets $4,000 in financial aid, they can borrow up to $2,000. The cost of attendance includes tuition and fees, room and board, books and supplies, transportation, and miscellaneous educational expenses. The school determines and certifies the amount.

Interest Rates and Fees

  • -The interest rate for Direct PLUS Loans disbursed on or after July 1, 2015, and before July 1, 2016, is 6.84%. Interest rates are fixed for the life of the loan.
  • In addition to interest, there is a loan fee on all Direct PLUS Loans. A percentage of the loan deducted from each disbursement to pay the fee. The percentage varies depending on when the loan is first disbursed. The fee for loans disbursed on or after October 1, 2014, and before October 1, 2015 was 4.292% and is 4.272% for loans disbursed on or after October 1, 2015, and before October 1, 2016.

Loan Repayment

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 six months after you are no longer enrolled at least half-time.

If you are a parent borrower, contact your loan servicer to request deferment:

  • - while you or your child are enrolled at least half-time and
  • - for an additional six months after your child is no longer enrolled at least half-time.

Interest still accumulates during deferment. You can pay off the interest during deferment. Your loan servicer will notify you when your first payment is due.

What else should I know about PLUS Loans?

PLUS Loans can be cancelled or forgiven. Before your money is disbursed, you can cancel part or all of your loan by notifying your college. After the loan is disbursed, you can cancel part or all of the loan within a specific time frame. Your promissory note and information from your school will explain the procedures and time frames for canceling your loan. You can also qualify for forgiveness of some or all of the loan if you meet certain conditions.

Parent borrowers cannot transfer a Direct PLUS Loan to the child. The parent is responsible for repaying the loan.

Last Edited: December 2015

Latest College & Financial Aid News

Protestors Bully Conservative Guest Speaker, President Not Happy

May 27, 2016

by Susan Dutca

One former and one current DePaul student disrupted a presentation at the school's student center earlier this week. One of them snatched the microphone from the interviewer and appeared to threaten the guest speaker, Milo Yiannopolous, with it. The disturbance was reportedly due to the fundamental disagreement with the subject matter being presented, as it ran counter to that of the protesters [...]

12 Year-Old Genius To Be A Doctor By Age 18?

May 24, 2016

by Susan Dutca

12-year-old Tanishq Abraham has already earned three associate's degrees and has been accepted to two University of California system four-year colleges. 60 percent of college students today are twice that age before they earn a single bachelor's degree. Tanishq Abraham started taking college courses at age 7 and has been accepted to UC Davis and received the highest honor - a Regents [...]

Netflix & Apply for Scholarships

May 19, 2016

by Susan Dutca

Netflix is every college student's delight and distraction. What should've been a two-hour study session ended up being 5 hours of watching Game of Thrones. Apply for one of these Top 10 Scholarships in the time it takes you an episode or two of your favorite TV series. The Scholarships.com "Tell A Friend" $1,000 Sweepstakes Deadline: 6/30/2016 [...]

Follow Us:

facebook twitter rss feed