nav.gif
What
are PLUS Loans?
PLUS Loans (Parent Loan for
Undergraduate Students) are low cost federally insured loans to parents
of dependent undergraduate students. A parent may borrow through a PLUS
Loan to meet the student’s educational costs, less any other financial
aid that the student may have been awarded. Eligibility is not based on
need or income, but parents MUST NOT HAVE ADVERSE CREDIT HISTORY.
Repayment begins within 60 days after the loan is fully disbursed.
back to top
Who is Eligible for a PLUS Loan?
To be eligible, a borrower
must be:
-
the parent, adoptive parent,
or stepparent of a dependent undergraduate student whose income information
must have been used on the Free Application for Federal Student Aid
(FAFSA).
-
a U.S. Citizen, U.S. National,
or eligible Non-Citizen.
Each child for whom you borrow
must be enrolled at least half-time and meet the school’s standards
for academic progress.
A PLUS
loan is not based on income or financial need.
back to top
How Much Can I Borrow?
Parents can apply for the entire
cost of attendance less any financial aid the student receives.
back to top
What is the Interest Rate?
Effective for Plus Loans first disbursed July 1, 2006 or later, the interest rate will be at a fixed interest rate of 8.5%.
back to top
How are Funds Disbursed?
PLUS loan proceeds are sent
to the student’s school and are generally disbursed in equal amounts
at the beginning of each school term. The repayment of a PLUS loan begins
60 days after final disbursement of each loan. The maximum repayment period
is 10 years.
back to top
What are the Basic Features/Benefits
of a Federal PLUS Loan?
-
Can be used to supplement
the student’s Federal Stafford Loan funding or cover the full
cost of tuition (less other financial aid).
-
Is not dependent on family
income or assets. However, credit checks are required.
-
Does not require collateral
or co-signers.
-
Allows payments to be postponed
up to 3 years in cases of hardship.
-
Allows prepayment at any
time without penalty.
back to top
What if I am Denied a PLUS Loan?
If a parent is denied a PLUS
Loan and he/she feels it is due to erroneous or outdated credit information,
lenders will work with the parent to resolve the issue.
If one parent is denied a PLUS
Loan, the other parent, adoptive parent, or stepparent may apply for a
PLUS Loan.
If a parent has been denied
a PLUS loan, the student may be eligible to borrow up to $4,000 in additional
funds under an Unsubsidized Federal Stafford Loan.
back to top
How Do I Apply for a PLUS Loan?
In order to ensure the student
takes advantage of all other forms of aid available, it is required that
the student first complete and submit the Free Application for Federal
Student Aid (FAFSA). Based upon the student’s eligibility, the college
will send an award letter which details his/her financial aid package
(grants, work-study, scholarships, loan, etc.) Be sure to make use of
all other forms of aid before borrowing.
Once the lender has pre-approved the application, a certification will be sent
to the school to be completed electronically. Once the loan has been certified
by the school, the student will be sent an award letter regarding the approval
of the Plus Loan.
Click here to apply for a Plus Loan
back to top
Financial Aid
Office - 301.784.5213 financialaid@allegany.edu
|
