|
Direct PLUS Loans The Direct PLUS Loan is a loan for parents to help their children pay for their education. All parents of dependent students are eligible to apply for the PLUS loan. For more information regarding Direct loans visit www.direct.ed.gov In addition, the Direct Grad PLUS Loan allows graduate and professional students to pay for additional educational expenses, not covered by financial aid. You may borrow up to the full cost of education minus other financial aid received. You are not required to have financial need to apply for the PLUS loan and no collateral is required. However, you must be creditworthy. Eligibility When applying for a Federal Parent PLUS Loan you must be the biological or adoptive parent of the dependent, undergraduate student who submitted the Free Application for Federal Student Aid (FAFSA). In addition, you must be a U.S. citizen or permanent resident and pass a credit check. Interest Rate The Federal PLUS loan has a fixed interest rate of 7.9% for all loans first disbursed on or after July 1st, 2011. Fees There is a fee of 4% of the total loan amount. These fees go to the federal government to help make up the cost of student loan programs. Disbursements Once you have completed your application, your financial aid office will determine your scheduled disbursements for the academic year. Your check will be disbursed to your school, who will apply the funds to your tuition bill. Any remaining funds will be disbursed to the student or parent according to the school's policy. |
