PLUS Loans are available to credit-worthy parents of dependent, undergraduate students and can be processed for up to the cost of attendance less any financial aid the student is receiving.

All PLUS loan borrowers are required to borrow through the federal government's Federal Direct Loan Program. Repayment begins 60 days after the loan is fully disbursed, unless the borrower chooses the deferment option on the PLUS loan application. All loans disbursed between July 1, 2015 and June 30, 2016 come with a fixed interest rate of 6.84% and a 4.272% processing fee which will be deducted from the loan proceeds.  When calculating the amount needed, borrowers must take this fee into consideration when calculating the gross amount of the loan proceeds.  The formula to calculate the amount need to borrow prior to the deduction of the origination fee is as follows:

Amount needed
------------------------  = Gross loan amount to be borrowed

If a parent needed to borrow a PLUS loan to cover $10,000 in annual expenses, they would need to apply for $10,448 to allow for the deduction of fees.  Using the formula above, the result would look like:

$10,000 (Amount needed)
--------------------------------------- = $10,446 (Gross amount to be borrowed)

The lender would then deduct a 4.272% fee ($446) on the $10,446 borrowed which would yield a $10,000 net loan disbursement.

Begin the application process.

Back to top