Federal PLUS Loan

The Federal Parent Loan for Undergraduate Students (PLUS) allows a parent with satisfactory credit history to borrow up to the estimated cost of attendance, minus any other aid the student may be receiving. Funds are borrowed from a lending institution and an origination fee of 3% is deducted from the loan proceeds. The interest rate is the same for all lenders and is fixed at 8.5%. Interest is charged on the loan from the date that the first disbursement is made, and repayment of principal begins within 60 days of the final disbursement for the academic year. The maximum repayment period is 10 years. There is no penalty for early repayment.

You do not need to have been offered a PLUS Loan on your award letter in order to apply for a PLUS loan. Completion of the FAFSA is not required to be considered for this loan. You must submit an application to the lender if you decide to borrow; this is done by completing a PLUS Loan Master Promissory Note with the lender. Most lenders are now able to provide an instant credit decision if you apply online. Anticipated PLUS loan credits are applied to your University invoice only after your completed loan application has been approved by your lender and certified by the Financial Aid Office.

You have a choice in selecting a lender for the PLUS Loan. Your family may already have a relationship with a lender and would prefer to borrow with that lending institution. For example, many families use the same lender from which the student borrowed the Stafford Loan. Others prefer to research on their own for the best service and repayment benefits offered. Our office will certify a PLUS Loan with any lender you select. We do offer information on our preferred lender list for those families who would like some assistance in making their choice.

The following is a list of preferred lenders for the PLUS Loan program, which provides a summary of each lender's borrower benefits and a link to their website. Our preferred lenders have been selected based on their ability to provide excellent customer service to our students. They also provide fast electronic payment of loan funds directly to your University billing account, and offer a variety of savings programs during loan repayment. Please be aware when reviewing the borrower benefits that you may lose an interest rate reduction due to late or delinquent payments. Ask your lender if they offer the ability to recover the benefit in the event that it is lost.

For more information on how this list is developed, please see the Preferred Lender List for Federal Stafford Loans.