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PLUS Loans have a fixed rate throughout the life of the loan.
The federal Parent PLUS and Graduate PLUS (Grad PLUS) Loans are supported by the federal government and can carry lower interest rates than consumer loans obtained by private lenders. Always explore federal loans before choosing private loans.
PLUS and Grad PLUS Loans are available for families and graduate students who do not qualify for the lower interest rate Stafford Loans or who need additional funds over what they are eligible for under the Stafford program.
Interest Rates
- loans first disbursed on or after July 1, 2006, the fixed interest rate = 8.5% for FFEL Plus or = 7.9% for Direct PLUS
- loans first disbursed July 1, 1998 but before July 1, 2006, the interest rate is variable and may change annually on July 1 but will never exceed 9%
Parent PLUS Loans
The Parent PLUS program allows parents to borrow the entire cost of attendance (less other aid including Stafford Loans) for each dependent undergraduate child who is enrolled at least half-time. For example, if the cost of attendance is $12,500 and the student receives $4,000 in other aid, the PLUS Loan amount may be up to $8,500.
Grad PLUS Loans
The Grad PLUS program allows graduate and professional students to borrow under the PLUS Loan program up to their total cost of attendance minus financial assistance received through other financial aid programs including the Stafford Loan programs. Applicants for the Grad PLUS Loan must complete the FAFSA. They must also first apply under the subsidized and unsubsidized Stafford Loan programs before applying the Grad PLUS Loan.
PLUS Loan Requirements
Credit Check
A credit check is performed on all PLUS Loan applications. If the parent borrower has an adverse credit history, they may be denied a loan. If this occurs, the student may be eligible to borrow additional amounts in their own name under the unsubsidized Stafford Loan program. A Grad PLUS applicant may also be denied a loan due to an adverse credit history.
Fees
The federal government requires the PLUS borrower to pay a fee of up to 4% of the loan.
Repayment
Repayment on all PLUS Loans begins 60 days after funds have been disbursed. Graduate and professional borrowers may receive an In-School Deferment and defer payments until a drop in attendance below half-time.
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