Direct PLUS Loan (for parents and graduate/professional students)

Borrower Eligibility

• Be a U.S. citizen, permanent resident or eligible non-citizen.
• Pass credit check and
• Be a parent or stepparent of an undergraduate student enrolled at least half–time or be a graduate/professional student enrolled at least half–time.

Application Requirement

• Complete a Free Application for Federal Student Aid (FAFSA) (This also applies for federal grants and work–study, as well as for many state financial aid programs).
• Complete a Federal PLUS Master Promissory Note at www.studentloans.gov.
• Required credit check performed at no cost.
• Student is notified of additional unsubsidized eligibility if PLUS loan is denied.

Maximum Loan Amounts (PLUS Loans)

Total annual cost of education (tuition, fees, housing, meals, etc.) less financial aid awarded (scholarships, grants, work-study and loans).

Interest Rate

Interest accrues while you or your son or daughter is in school. PLUS Loans now have a fixed interest rate of 7.9%. Loans disbursed before July 1, 2006, have a variable interest rate that changes every year, but is capped at 9%. The variable rate is based on the 91–day Treasury bill rate. Your lender will let you know each year what the new interest rate is on any variable-rate loans you have.

Repayment

Payment of principal and interest begin approximately 30-45 days from the date the loan is fully disbursed. The repayment loan term is 10 years with a minimum payment of $50. Principal deferment options are available.

Billing

Convenient monthly statement

Disbursement

Checks are co-payable to the parent and school, and mailed directly to the school.