Federal PLUS Loan
The Federal PLUS Loan enables parents to borrow to pay the educational expenses of each child who is a dependent student enrolled at least half time. The parent 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). You can use your FAFSA PIN number to electronically sign the promissory note. Contact the Financial Aid Office to obtain a paper application if you cannot access the MPN on line.
If you have previously borrowed a PLUS loan for your student, simply complete the PLUS Loan Authorization Form and return to the Financial Aid Office. You will not be required to complete a new MPN.
Terms of the Loan:
Interest: Beginning July 1, 2006 the interest rate is fixed at 8.5%. Interest begins to accrue at the time of first disbursement.
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 parents 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 parent borrower monthly or quarterly, or be capitalized quarterly. There is no penalty for paying the loan in full early.