Federal Parent Loans for Undergraduate Students, also known as PLUS loans, are low-interest education loans that allow parents to fund the cost of their child's education.
A parent is eligible to borrow up to 100% of the estimated cost of their child's attendance, including tuition, room and board, books, transportation and additional expenses, minus any other financial aid awarded to the student.
| Apply for a PLUS Loan online today or call 1.866.494.GRAD |
 |
|
 |
Common Questions about PLUS Loans
|  |
Why do financial experts recommend the PLUS Loan?
Many people take advantage of the PLUS loan due to the low interest rates and favorable repayment terms. With simple interest rates as low as 6.10%, many families place the money that they were going to use for college into investments that earn more compounding interest.
The PLUS loan is not income sensitive; this means that family income is not a factor when determining eligibility.
What is a PLUS loan?
Federal Parent Loans for Undergraduate Students, also known as PLUS loans, are low-interest education loans that allow parents to fund the cost of their child's education.
Who is eligible for a PLUS loan?
To be eligible, you must
- be a natural, step or adoptive parent of a dependent student
- be a U.S. citizen or eligible non-citizen and provide a valid Social Security number
- pass a credit check
Eligibility also depends on the student. The student must:
- be less than 24 years of age
- have no dependents
- be enrolled at least half-time
- be unmarried
How do I apply for a PLUS loan?
graduatefund.com makes it easy for you to apply for a PLUS loan. All you need to do is complete our short and simple online application. Next, one of graduatefund.com's highly trained loan counselors will contact you within 48 hours to discuss the PLUS loan and to answer any questions you may have. Upon your approval, the loan counselor will obtain and evaluate your credit report to determine your eligibility. Once the credit check is approved and application information is verified, an application will be mailed to you. Simply sign, date and return in the enclosed envelope and you're all set!
If this is your first time learning about your PLUS loan options and your child has already begun their college education, don't worry! Parents may apply for a PLUS loan retroactively to cover educational costs they've already incurred for the current school year. Simply stated, parents can take out a loan equal to the total out of pocket expenses paid for their child's school-related costs.
Is there a credit check involved?
Yes. In order to obtain a PLUS loan, you will be subject to a credit evaluation verifying that you have no adverse credit history. A parent with adverse credit history can still qualify for a PLUS loan by securing an endorser who must pass all credit requirements.
How much can I borrow?
A parent is eligible to borrow up to 100% of the estimated cost of their child's attendance, including tuition, room and board, books, transportation and additional expenses, minus any other financial aid awarded to the student.
How will the loans be disbursed?
PLUS loan disbursements are sent directly to the school. The school will then verify the student's enrollment and apply the funds toward tuition, room and board, and other additional expenses. If there is any remaining money, it will be sent to the parents unless the school is authorized to release the funds to the student or place them in a school account.
What is the interest rate on PLUS loans?
Interest rates on PLUS loans are variable and adjusted every July 1st (based on the 91 day T-Bill + 3.1%). PLUS loan interest rates are capped and will not exceed 9%.
Are there any pre-payment penalties on PLUS loans?
No. There are no pre-payment penalties. In addition, any amount paid over your minimum payment will be applied directly to principal and not interest.
What are the repayment terms of a PLUS loan?
The repayment term for a PLUS loan is typically ten years. Loan repayment begins within 60 days of the final loan disbursement. At that point, you will also be eligible to save money by consolidating your loans and locking in the low interest rates.
Is it ever possible to postpone repayment of a PLUS loan?
Yes. Under certain circumstances, parents can receive deferment or forbearance benefits for their loan. If eligible, parents may be able to postpone or reduce their monthly payments.
Are there any charges for a PLUS loan?
There is a combined fee of up to 4% of the loan. For PLUS loans, there is a 3% origination fee that goes to the federal government and a 1% guarantee fee that goes toward the guaranty agency that insures your loans. These fees are deducted proportionately from each loan disbursement so that you aren't required to come up with any up-front money to obtain the loan.
Why do financial experts recommend the PLUS Loan?
Many people take advantage of the PLUS loan due to the low interest rates and favorable repayment terms. With a simple fixed interest rate of 6.8%, many families place the money that they were going to use for college into investments that earn more compounding interest.
The PLUS loan is not income sensitive; this means that family income is not a factor when determining eligibility.
What if I have other questions?
Please email us at plus@graduatefund.com or call (866) 494-GRAD to talk to a Loan Counselor trained in PLUS Loans.
|  |  |
|
Getting Started is EASY!
Enter your information and
Proceed to Student Loan Center.
Proceed
|
|
