Federal Parent PLUS Loan Program
Many parents dream of sending their children to college. The Federal Parent PLUS Loan Program can help you get there. With a Parent PLUS Loan, the parent is the borrower.
Am I eligible?
- A parent may borrow on behalf of their dependent undergraduate student(s) enrolled at least half time in an eligible program.
- Eligibility for Federal Parent PLUS Loan is not based on financial need.
- You must not have an adverse credit history as defined in the federal regulations.
Adverse credit history may include:
- The applicant is 90 days or more delinquent on the repayment of any debt.
- The applicant has had any debt discharged in bankruptcy during the five-year period before the date of the credit report.
- The applicant has been the subject of a default determination on any debt, a foreclosure, a tax lien, a repossession, a wage garnishment, or a write-off of a Title IV debt during the five-year period before the date of the credit report.
- A loan that has been discharged as the result of a closed school or false certification claim may not be considered to represent adverse credit.
If you have had prior credit concerns or prior financial problems, we strongly encourage you to still apply.
How much can I borrow?
The financial aid administrator at the college your dependent is attending determines and certifies the loan amount.
When do I have to repay the loan?
Repayment begins shortly after the funds are disbursed, and the repayment term can be up to ten years.
What is the interest rate?
Current Interest Rate for Federal PLUS Loans:
The current Federal PLUS Loan interest rate is fixed at 8.5%.
- Loans disbursed prior to July 1, 2006, have a variable interest rate, adjusted annually on July 1, with a maximum of 9.00%.
- The Federal PLUS Loan variable interest rate for July 1, 2009, to June 30, 2010, is 3.28%.
Contact your child's school for information on how to apply for a Federal PLUS Loan.