How Do I Know if I Qualify?
Before you apply for a PLUS Loan, you can find out if you qualify.
Doing this online is the fastest way to know if a borrower is pre-approved for a PLUS loan.
What are PLUS Loans?
Federal PLUS Loans are available to graduate students and to parents of
dependent undergraduate students. PLUS borrowers generally will need to
pass a credit check to determine eligibility. PLUS Loan eligibility is not
based on need. The student must be enrolled at least half-time. The
interest rate on loans first disbursed after July 1, 2006 will be set at a
fixed interest rate of 8.5%. If a parent is unable to borrow a PLUS, their
dependent student may be eligible to borrow additional funds under the
Federal Unsubsidized Stafford Loan Program.
How do I apply?
Borrowers must complete and submit a PLUS Loan Master Promissory Note, available
from your school, lender, or your state guaranty agency. After the school
completes its portion of the application, it must be sent to a lender for
evaluation. Apply for a PLUS Parent loan or a PLUS
Graduate loan
How much can I borrow?
The yearly limit on a PLUS Loan is equal to the student's cost of
attendance minus any other financial aid received.
When do I begin repaying a PLUS Loan?
Generally, repayment must begin within 60 days after the loan is fully
disbursed. There is no grace period for these loans. This means interest begins
to accumulate at the time the first disbursement is made. In school deferment
and forbearance options may be available. Check with your lender for
benefits.
Who gets the money?
The loan funds are sent directly to the school from the lender. In
most cases, the loan will be disbursed in at least two installments, and no
installment will be greater than half the loan amount. The funds will first be
applied to the student's tuition, fees, room and board, and other school
charges. If any loan funds remain, the borrower will receive the amount as a
refund check. Any remaining loan funds must be used
for education expenses. |