What are Federal Parent Plus Loans?

Parents can obtain a Plus loan to help pay the cost of education for their dependent undergraduate children.  To qualify, the parent borrower must meet the general eligibility requirements for federal student aid such as:

·        Be a U.S citizen or eligible noncitizen

·        Not be in default on a federal student loan

·        Not owe a refund on a federal educational grant (i.e. Pell Grant)

In addition,

·        The interest rate is fixed at 7.9% for loans disbursed on or after July 1, 2006

·        The parent borrower is responsible for paying all the interest

·        The parent borrower will have between 10 and 25 years to repay the loan, depending on the amount owed and the repayment plan selected (Exception: The Income Contingent Repayment Plan is not an option for the Plus Loan)

·        The parent borrower must not have an adverse credit history. (Parents with adverse credit may still be considered for the Plus loan by documenting existing extenuating circumstances or by obtaining a co-signer).

·        The amount will be determined by the following equation:

Cost of Attendance

-         Any other financial aid you receive

=    Amount of Plus Loan