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 borrowerâ€™s credit worthiness. A parent with an adverse credit history may 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 Parent 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%|
Beginning July 1, 2013
|Credit Worthiness||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.|