Federal Parent PLUS Loan (for parents of Dependent Undergraduate Students)
The Parent PLUS loan is a federal loan that allows a parent to borrow funds to help meet your educational expenses. Unlike the Stafford loan, eligibility for the Parent PLUS loan is based on the borrower’s credit worthiness.
Parent must apply for a Parent Plus Loan at StudentLoans.gov
Parent must sign a Plus Master Promissory Note (Plus MPN)
|Annual Loan Limit||Up to the Cost of Attendance (COA), minus other financial aid and resources.
|Interest Rate||6.84% from July 1, 2015 through June 30, 2016 (expected to change July 1, 2016)
|Fees||Origination Fee: 4.272%|
|Credit Worthiness||A parent with an adverse credit history may still borrow a PLUS Loan if the parent gets an endorser/co-signer with an acceptable credit history. 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.
|Additional Student Loan Eligibility if PLUS Loan is denied||If the parent is denied a PLUS Loan, the student may request additional unsubsidized student loan funds. The amount of additional loan eligibility will vary, based on the student’s classification and previous student loan borrowing history, but cannot exceed the following limits: