Federal Parent PLUS Loans

When parents want to help finance a child's education, there is no easier way than a Federal Parent Loan for Undergraduate Students (PLUS). Federal PLUS Loans are not based on need but rather parents' creditworthiness. Federal PLUS Loans are disbursed directly to the school, generally in two installments.

Parents of eligible undergraduate students, meeting the requirement set forth by the U.S. Department of Education, are eligible for the Federal PLUS Loan.

Federal PLUS Loans enable parents with good credit histories to borrow up to the cost of education minus financial aid received.

Parents pay a four percent processing fee which is deducted proportionately each time a loan payment is made. The interest rate is variable, but it will never exceed nine percent. Generally, repayment begins within 60 days after the final loan disbursement for the academic year. There is no grace period for PLUS loans. This means interest begins to accumulate at the time the first disbursement is made.

To apply for a Federal PLUS loan, go to Plus on the Web.