The Federal Parent PLUS loan (PLUS loan) is a federal loan that allows a parent to borrow funds to help meet your educational expenses. Unlike the Stafford student loan programs, eligibility for the PLUS loan is based on the borrowerâ€™s credit worthiness. A parent with an adverse credit history may still borrow a PLUS Loan if the parent gets an endorser with an acceptable credit history. An endorser is someone who agrees to repay the PLUS Loan if the parent does not repay the loan.
|Interest Rate||6.41% from July 1, 2013 through June 30, 2014|
|Interest Subsidy||The borrower (your parent) is responsible for interest that accrues from the date of disbursement.|
|Fees||Origination Fee: 4.204%|
|Completion Requirements||Parent must complete the Free Application for Federal Student Aid, FAFSA
Beginning July 1, 2013
To be eligible for a PLUS Loan, the parent must not have an adverse credit history.
A parent with an adverse credit history may still borrow a PLUS Loan if the parent gets an endorser with an acceptable credit history. An endorser is a co-signer who agrees to repay the PLUS Loan if the parent does not repay the loan. The endorser cannot be the student.
In some cases, the parent may be able to obtain a PLUS Loan if the parent can document that there are extenuating circumstances related to the adverse credit history.
|Annual Loan Limit||Up to the Cost of Attendance (COA), minus other financial aid and resources.|
* For loans disbursed on or after July 1, 2008