Federal Direct Parent Loan for Undergraduate Students (PLUS)
Federal Direct PLUS Loan:
The Federal Direct PLUS Loan allows parents to borrow up to the cost of attendance (less any other financial aid) each year. The current 2012-2013
interest rate is a fixed rate of 6.41 percent. Monthly re-payment begins within 60 days after the final disbursement for each academic year.
The standard repayment period is 10 years with no penalties for prepayment. Deferment options are available. PLUS loan borrowers cannot have
an adverse credit history (credit check will be done).
All first-time parent borrowers must complete the online PLUS Master Promissory Note (MPN) before PLUS loan funds can disburse. The PLUS Loan MPN can
be completed at www.studentloans.gov. Parents who are approved with an endorser (credit worthy cosigner) must complete a new MPN for each loan
application they submit. Parent borrowers do not need to complete a Federal Loan Entrance Interview. The parent who is borrowing the PLUS loan must
sign in using their Federal FAFSA PIN.