| The Federal Parent Loan for Undergraduate Students (PLUS) is a low-interest rate solution for financing your child's education. Many parents choose PLUS Loans because they offer many advantages over home equity loans, credit cards and other types of private loans.
Advantages of a Parent Loan:
- Low fixed interest rate - 8.5%, will never increase
- No prepayment penalties
- Interest may be tax deductible
- Loan is not based on income or assets with minimal credit criteria
- Credit resolution for parents who are unable to obtain a PLUS loan
- Convenient repayment terms-up to 10 years
- Borrow up to your child's cost of attendance (less the students financial aid package)
- Loan consolidation option to lock in the low interest rate
- Forbearance opportunities
Simple Qualifications:
- U.S. citizen or permanent resident
- Parent of a full-time or part-time student less than 24 years old as of December 31st of the upcoming academic year
Interest Rate
- Low fixed rate - 8.5% fixed rate for loans disbursed after July 1, 2006
Fees
- PLUS loans are subject to a 3% origination fee and a 1% guarantee fee which are deducted from the original loan amount. Some or all of these fees may be waived by the lender.
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