PLUS loans are low-rate loans for parents of undergraduate students designed to help their child afford a college education. With a PLUS loan, parents can fund the entire cost of the student's education, minus the financial aid received by their child. The funds can be used for books, supplies and living expenses, as well as direct costs like tuition and room and board.

The PLUS loan has a fixed interest rate, allows up to 10 years for repayment, and there is no penalty if you pay it off early.

Parent Loans for Undergraduate Students (PLUS) are available to parents with good credit history* to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. PLUS Loans are available through Federal Family Education Loan Program (FFELP). Most of the benefits to parent borrowers are identical in the two programs.

*If a parent is denied a PLUS loan due to credit or any other reason, the
student may be eligible for an additional $4,000 in unsubsidized Stafford loans

Benefits:

• Parents can fund entire cost of their child's education, minus any other financial aid received
• Interest rates vary annually, but are capped at 9%
• Requires a basic credit check, but loans are not based on income or assets

Benefits of Grad PLUS loans include:

• Easy application process
• Competitive interest rates
• Borrowers can delay repayment until after graduation
• PLUS loans have no income or collateral requirements.
• Flexible repayment options offer you a wide variety of choices.
• Interest may be tax-deductible. Consult your tax advisor.
• There is no prepayment penalty.
• You can defer your payments for up to 60 months while still in school.

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