Parent Loan for Undergraduate Students (PLUS)

PLUS

The federally sponsored Parent Loan for Undergraduate Students (PLUS) is a low-interest education loan for parents of undergraduate dependent students. PLUS lets parents fund the entire cost of the student's education (less student financial aid). This includes books, supplies, living expenses, as well as direct costs like tuition and room and board.

The PLUS interest rate is fixed at 8.5% for loans disbursed after July 1, 2006.

Advantages:

• PLUS loans are not based on income or assets.
• PLUS borrowers do not need collateral.
• PLUS loan interest may be tax deductible.
• Parents may take up to 10 years to repay the loan.
• There is no pre-payment penalty.
• Automatic Debit (automatic payment) customers get a .25 percentage point interest-rate cut.

Requirements

• U.S. citizen or permanent resident
• Parent of a full-time or half-time undergraduate
• No adverse credit

Loan Limit:

Up to the total cost of the student's education (minus other aid received).

To apply for a PLUS loan, contact SallieMae.