PLUS – Federal Parent Loan for Undergraduate Student Loan | Print |
College Planning Center - Financing College

 

 

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The federally sponsored Parent PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child's education (less other financial aid).

Eligibility

  • You may apply for a Parent PLUS loan to pay for the higher-education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
  • You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
  • A credit check is required.

Features

  • Many Sallie Mae lenders offer borrower benefits on Parent PLUS loans that can save you money in repayment.
  • Flexible repayment options are available.
  • Postpone repayment while the beneficiary student remains enrolled at least half time and for an additional six months afterward.
  • You can manage your account online 24/7.
  • You get life-of-loan servicing from Sallie Mae.
  • There is no prepayment penalty.
  • There are no income or collateral requirements.
  • Interest may be tax-deductible.
  • We have an easy online application and approval process with an instant credit decision.

Loan terms

Loan limit

You may borrow up to the full cost of your child's education less other aid received. 

Interest rate

PLUS loan

  • The interest rate on PLUS loans first disbursed beginning July 1, 2006 is fixed at 8.5%.
  • The interest rate on PLUS loans first disbursed on or after July 1, 1998 but before June 30, 2006 is variable and may change annually on July 1 but will never exceed 9%. The current interest rate on these variable rate PLUS loans is 5.01%.

 

Fees

    There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged.

The Parent PLUS loan can be used for tuition and fees, room and board, books, supplies, transportation, and living expenses.