PLUS Loans – All About Federal PLUS Loans

September 7, 2011

PLUS Loans

PLUS Loans

PLUS Loans are offed by the governemnt in the form of financial aid for students to be able to afford to study and attain a degree. There are two PLUS loans that are available to the public, those are Parent PLUS Loans as well as Graduate PLUS Loans that enables students all over the country to be able to afford tuition fees. Depending on where you are in school, you can use a PLUS loan to pay for schooling and be able to pay if back at the conclusion of your schooling. To get you familiar with with PLUS Loans, below will be all the major detailing on both of the options as well as how to apply for either of the PLUS Loans options.

Parent PLUS Loans

First off, Parent PLUS Loans. These loans are called what they are because the are designated for parents who want to pay for their college education, also known as dependant children in college.  Here are some of the terms and benefits of the parent loan:

  • You can borrow up to the cost of the education minus any other financial aid the child is receiving.
  • Fixed interst rates at 7.9 percent.
  • Half time enrollment is a must to receive a loan.
  • Loan repayment comes in three forms Standard (same amount each month), Extended (longer repayment which lowers monthly payments), Graduated (payments gradualy increase thorughout the repayment life).
  • The loans can be cancelled but a fee is required.
  • A 4 percent fee is charged each month of payment.
  • Student loan forgiveness is an option.
  • You must start paying the loan off from the first day of disbursement.

Parent PLUS Loans Eligibility Requirements

  • Either biological or adoptive parents, possibly a step parent.
  • The student must be younger than 24 years of age, have no dependants, not be a veteran, shouldn’t be married, cannot be a ward of the court and can’t be going for a professional or graduate degree.
  • Parents and Student must be a US citizen or a qualifying non resident.
  • Parents and students must have no current loan default or overpayment on any current loans

Graduate PLUS Loans

Graduate PLUS Loans are specifically for student whom are looking to go to school to get a graduate or professional degree. Here are some of the benefits and terms of Graduate PLUS Loans:

  • Interest rates are also at a 7.9 percent fixed interest rate.
  • Loan payments are often times considered to be tax deductable.
  • No cosigner is needed.
  • There is a 4 percent origination fee.
  • Loan payment starts at the conclusion of your schooling.
  • Repayment usually spans over 10 years but can be increased to up to 25 years.

Graduate PLUS Eligibility Requirements

  • You need to have a positive credit history or find a cosigner that does.
  • Repayment begins 60 days after you graduate, drop out or drop below a half time enrollement schedule.
  • You need to be going for a graduate degree or a professional degree.
  • US citizen or qualifying non resident.


If you are more interested in getting one of the PLUS Loans, the best thing to do now is to fill out a Direct PLUS Loan Application which is the personal information section that figures out how much money you can qualify for. You will also need to fill out what is called the Master Promissory Note which is the legal papers in which you state that you will repay the loan when it needs to be repaid, and will also state all of the terms and major information about the your Parent PLUS Loan.


Category: Federal PLUS Loans, Student Loan Database

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