Federal Parent PLUS Loan
The Federal Parent PLUS loan program is directed to natural, adoptive, and in some cases step-parents of dependent undergraduate students. Eligibility is based on credit, not income or need. Parents may borrow up to the cost of attendance minus other financial aid for each student enrolled at least half-time. Repayment of the Parent PLUS loan begins between 30 to 60 days after the loan is fully disbursed; however, deferment of payments while the student is enrolled may be requested by contacting the Direct Loan Servicing Center. Interest rates are established each year for which the first disbursement is on or after July 1 through the following June 30. This interest rate is then fixed for the life of the loan. The interest rate cap is 10.50%. For the 2013-2014 academic year, the fixed interest rate is 6.41%. For the 2014-2015 academic year, the fixed interest rate is 7.21%. There is a 4.292% origination fee for this loan.
Parents who wish to apply for a PLUS Loan will need to complete the PLUS Loan Credit Authorization each year. In the initial year, the parent will also need to complete a Master Promissory Note (MPN).
Complete both steps online at www.studentloans.gov. (Select Request PLUS loan option)
Please take a look at this video tutorial to help guide you through the Parent PLUS loan application and process.