Parent PLUS Loans

The Parent PLUS Loan allows parents of undergraduate students to borrow up to the cost of education, less any financial aid. 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 2005-2006 academic year interest rates for Parent Plus Loans are 6.1 percent. Repayment of principal and interest begins immediately with minimum monthly payments of $50 plus interest. Repayment may be spread over 10 years.