The Federal Parent Loan for Undergraduate Students (Federal PLUS) program is for parents of dependent students. It is a loan in which family income is not taken into consideration; therefore, the program is open to almost any parent who has good credit.
For PLUS loans first disbursed on or after July 1, 2017 and before July 1, 2018, the interest rate will be 7.00%. For PLUS loans first disbursed on or after July 1, 2018 and before July 1, 2019, the interest rate will be 7.595%. The parent can borrow up to the cost of the college education, less aid, at a variable rate of interest (currently not to exceed 9%).
There will be a 4.264% origination fee that will be taken out of the total amount of the loan by the U.S. Department of Education for loans first disbursed on or after Oct. 1, 2017 and before Oct. 1, 2018. Repayment begins immediately after the final disbursement of funds. We recommend students first utilize all eligibility for grants and the Federal Direct Loans before receiving a federal PLUS. This is a loan and must be repaid. Funds are paid in multiple disbursements and given to the parent(s) after tuition and fees have been paid.
Maximum award amount: Student’s costs less other financial aid, subject to credit approval
Enrollment required: A minimum of 6 credit hours