Parent PLUS Loan for Summer 2013
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 borrower’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||7.9% fixed|
|Interest Subsidy||The borrower (your parent) is responsible for interest that accrues from the date of disbursement.|
|Fees||Origination Fee: 4.204%|
|Completion Requirements||To receive a Parent PLUS loan:|
To be eligible for a PLUS Loan, the parent must not have an adverse credit history.
A parent with an adverse credit history my still borrow a PLUS Loan if the parent gets an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if the parent does not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.
In some cases, the parent may also be able to obtain a Direct 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.|