Parent PLUS Loan Information
The variable interest rate is determined July 1 of every year, capped at 9 percent; repayment typically begins 30 days after full receipt of the loan. During the 2008-2009 academic year interest rates for Parent PLUS Loans were 8.5 percent. Repayment of principal and interest begins immediately with minimum monthly payments of $50 plus interest. Repayment may be spread over 10 years.
There are a number of advantages in considering the Parent PLUS loan over a private educational loan. As a family you should decide which loan option best suits your needs. There is no obligation to accept this loan. If your family decides to proceed with a Parent PLUS loan, the parent must complete a credit check, select a lender and complete a PLUS Master Promissory Note on or after June 1.
Graduate and professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in the FFEL Loan Program. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5 percent in the FFEL program. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.
: Deferment options may be available. Please inquire with your lender of choice, prior to signing your Master Promissory Note (MPN).
Should you have any questions regarding this process, please contact the Office of Financial Aid.