Federal Direct Parent and Graduate PLUS Loan
The Federal Direct PLUS Loan enables parents and graduate students to borrow to pay educational expenses, of the child who is a dependent of the parent, or graduate student, who is enrolled at least half-time. The parent or graduate student is the borrower for this loan program.
To be eligible for a PLUS Loan you must:
- Pass a credit check
- Meet citizenship requirements
- Student must be enrolled at least half-time in a degree-seeking program
How to Apply:
For preapproval and application, you can go online to complete a Master Promissory Note (MPN). Click on the option to complete PLUS Request Process. You will also need to complete a PLUS Loan Authorization form before Augustana can process your loan.
Terms of the Loan:
Interest: Interest rate on the Direct PLUS loan is fixed at 6.31% for the 2016-17 school year. Interest begins to accrue at the time of the first disbursement.
Loan Fees: A fee of 4.276% is withheld from the principal loan amount at disbursement. Please plan on this when determining your loan amount.
Loan Limits: The yearly limit is equal to the cost of attendance minus any other financial aid the student receives.
Repayment: Effective July 1, 2008, the borrower may choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accruing interest could either be paid by the borrower monthly or quarterly, or be capitalized quarterly. There is no penalty for paying the loan in full early.
For more details about the PLUS Loan, go to the U. S. Department of Education's Direct Loan information brochure.