(Also referred to as Direct PLUS Loans)
PLUS Loans are loans in which the parent of a dependent undergraduate student is the applicant/borrower. The amount borrowed can be as high as the cost of education minus other aid or as low as desired or required. A credit check reviewing the parent's credit history is required to determine eligibility. Like the Stafford Loans, the lender and guarantor is the U.S. Department of Education. All borrowers will need to complete a Master Promissory Note (MPN) online at www.StudentLoans.gov.
There is a fixed interest rate of 7.9% for all Direct PLUS Loans. An origination fee of 4.0% is deducted from each disbursement. Repayment typically begins 60 days after the second disbursement of the loan.
Request a Direct PLUS Loan no earlier than 60-days before the first term of attendance each academic year. There is a limited amount of time for college to certify an approved loan, and if you are approved too soon the credit check may expire before it is possible to certify the loan. You would then be required to complete an new application if this were to occur.
Last Updated: 8/8/12