Get a PLUS Loan
The Federal Family Education Loan Program (FFELP) is composed of three loans—Federal Stafford Loan (subsidized and unsubsidized), Federal PLUS Loan (for parents of dependent undergraduate students and for graduate/professional students), and Federal Consolidation Loan.
The Federal PLUS Loan Program provides loans to parents or stepparents of eligible dependent undergraduate students or to graduate/professional students who need additional financial assistance in meeting postsecondary educational expenses. Eligibility is not based on income. This program is intended to supplement the Federal Stafford Loan Program.
Parent Eligibility Criteria
To be eligible for a Federal PLUS Loan, you must:
- Be the natural parent, adoptive parent, or stepparent (if income and assets were used in need analysis determination) of a "dependent student" as determined by the school.
- Be a citizen, permanent resident, or eligible noncitizen of the United States and verify your Social Security number and immigration status.
- Not be in default or owe a refund on any educational grant or loan.
- Not be determined to have an adverse credit history, as defined by federal regulations.
Undergraduate Student Eligibility Criteria
To be an eligible student with the parent as the borrower, the student must:
- Be determined by the school to be a "dependent" student.
- Be a citizen, permanent resident, or eligible noncitizen of the United States.
- Be enrolled or accepted for enrollment at least half-time in an eligible degree or certificate program at an eligible institution.
- Be in good standing and making satisfactory academic progress if currently enrolled.
- Not be attending elementary or secondary school.
- Not be in default or owe a refund on any educational grant or loan unless satisfactory arrangements have been made toward repayment of the debt.
Graduate/Professional Student Eligibility Criteria
To be eligible for a Federal PLUS Loan, you must:
- Be a citizen, permanent resident, or eligible noncitizen of the United States and verify your Social Security number and immigration status.
- Not be in default or owe a refund on any educational grant or loan.
- Not be determined to have an adverse credit history, as defined by federal regulations.
Interest Rate
Federal PLUS Loans have a fixed interest rate, which is capped at 9%, regardless of any Federal PLUS Loans the borrower may have outstanding at a different interest rate. Therefore, a borrower may have separate loans at different rates. The fixed rate in effect beginning July 1, 2006, is 8.5%.
Fees Paid by the Borrower
A 1% federal default fee and a 3% origination fee will be charged to the borrower. These fees are based on the amount borrowed and are deducted from the loan proceeds. Some lenders may pay the default fee on your behalf.
Lenders may also offer discounted interest rates. Check with your lender to determine applicable fees.
Loan Limits
A parent may receive an amount not to exceed the student's estimated cost of attendance minus any financial aid the student has been or will be awarded during the period of enrollment. There are no aggregate loan limits.
