PLUS Loans

Overview of Parent PLUS Loans

PLUS Loans are available through US Department of Education funding programs. This page covers the basics of PLUS Loans. PLUS loans are unique because you can get really large loans depending on your costs of attendance.

PLUS Loan Eligibility

PLUS Loans are available to students who are all of the following:

• Dependent students
• Part-time or more
• Undergraduate

You must be a US citizen, national, permanent resident, or have other special status.

PLUS Loan Highlights

Borrowers who use PLUS Loans may enjoy:

• Higher loan amounts after other loans are exhausted
• Flexible repayment options (including consolidation)
• No prepayment penalty

Note that the amount you can borrow is reduced if the student receives resources such as scholarships.

Details on PLUS Loans

If you’ll use a PLUS Loan, be aware of the following:

• Parents must pass a credit check
• You may pay a fee of up to 4%
• You must repay the loan
• Loans issued after July 2006 have a fixed 8.5% APR
• Interest will not be subsidized
• Repayment begins 60 days after the loan is made – no grace period

As always, some lenders may vary their offerings slightly.

How to Get a PLUS Loan

PLUS Loans are for parents – you might hear them called Parent PLUS Loans. A parent (not the student) completes a PLUS Loan application to get the ball rolling. Ask your financial aid office for this application.

How Much Can I Borrow?

The maximum loan depends on your cost of attendance and any resources you get. You can’t borrow more than it costs for school, but you can include a variety of costs when calculating cost of attendance – including books, supplies, and more.

For Additional Information

Your Financial Aid office is really the best place to go with questions. You can also visit:

• The Department of Education’s loan page (where you can view the Student Guide)
• The Federal Student Aid Direct Loans site