Federal Plus Loan
The Parent Loan for Undergraduate Students (PLUS) allows parents or stepparents to borrow up to the cost of a student’s education minus the financial aid the student is receiving. Eligibility is based on credit rating and is not based on income. The interest rate on the PLUS Loan is a fixed rate of 7.9%. For PLUS Loans disbursed after July 1, 2008, parents have the option of beginning to repay the loan either 60 days after the loan is fully disbursed or waiting until 6 months after the student leaves school or drops below half-time enrollment. Loan Payment Calculator
To be eligible for a Federal PLUS Loan you must meet the following requirements:
- Be the natural parent, adoptive parent, or stepparent of a dependent student.
- Not be determined to have adverse credit history, as defined by federal regulations.
- Be a citizen, permanent resident or eligible noncitizen of the United States.
- Not be in default or owe a refund on any educational grant or loan.
How To Apply
To apply for a PLUS Loan follow the three steps below:
- Complete a PLUS application at the www.StudentLoans.gov Web site. After entering your information, you will be notified whether you have been approved or denied. Centre College will receive a report of PLUS approval or denial.
- Complete a Master Promissory Note (MPN) at the www.StudentLoans.gov Web site. To electronically sign your MPN, use your Federal Student Aid PIN.
- Starting in 2011-12, all students with a parent wanting a PLUS loan must complete the Free Application for Federal Student Aid.
Fees Paid by the Borrower
A 4% origination fee will be deducted from each loan disbursement. This fee is based on the amount borrowed and is deducted from the loan proceeds.
Repayment of principal and interest begins within 60 days after the date the loan is fully disbursed unless an authorized deferment of principal is granted to the borrower. If the borrower receives a deferment, interest begins to accrue upon disbursement and must be paid by the borrower monthly or quarterly or be capitalized (added to the principal). Borrowers have 10 years to repay their loans under the standard, graduated, or income sensitive repayment option.
If the federal government denies a parent a PLUS Loan because of an adverse credit history, the student is eligible to borrow additional funds through an unsubsidized Federal Stafford Loan. Freshman and sophomore students are eligible to borrow $4000. Junior and senior students are eligible to borrow $5000. If you are denied a PLUS Loan and are interested in borrowing the additional unsubsidized Stafford Loan, please contact The Student Financial Planning Office at firstname.lastname@example.org or 859-238-5365.
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