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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.


Parent PLUS Loans – Major Overview

September 6, 2011

Parent PLUS Loans

Chances are pretty good that you have sometime heard about the Parent PLUS Loans when it comes to college tuition fees. Parent PLUS Loans were created for the sole reason for parents who choose to take out a loan for their dependant children. Whether you are reading this as the dependant relaying this information to your parents, or a parent looking for loan inforomation for your child, let us explain to you all you need to know about the Parent PLUS Loan. You will be introduce to the overall terms and benefits, eligbility requirements as well as how to get the loan.

Parent PLUS Loans

Parent PLUS Loans Benefits & Terms

  • You can borrow up to the cost of the childs education minus any other sources of financial aid that you are receiving (grants, scholarships, family contribution).
  • The students school will receive the money and will disperse it to the student.
  • The Parent PLUS Loans have a fixed interest rate of 7.9 percent.
  • Half time enrollement is required.
  • Every time a parent makes a payment, they pay a fee of 4 percent.
  • The repayment of the loan starts the day the loan is disbursed, and the first payment is to be paid within the first 60 days of your student either finishing school, dropping out, or dropping below the half time enrollemnt.
  • Parents can choose to repay their loans with the Parent PLUS Loans repayemnt options which are: Standard (Same loan payment everymonth), Extended (lower payments for a longer repayment life), Graduated (payments start low and increase every two years). These plans range from 10 to 25 years to pay off the debt.
  • Student loan forgiveness is offered.
  • If you choose to cancel the loan, you will need to pay a fee.

Parent PLUS Loans Eligibility Requirements

In order to take out Parent PLUS Loans, parents  must fit the following requirements:

  • Parents must be either the biological parents or adoptive parents of the dependant child, although it is possible to get a step parent to sign for your loans.
  • You must be either a US citizen or a, resident permenantly or eligble non resident, no loan default or overpayment on loans

As for the students requirements, here are the prerequisits that students must follow:

  • The student must enrolled in at least a half time enrollment schredule.
  • The student must fit the follwing requirements; 24 years old or younger, must have no dependants, are not married, as well as not being a veteran, a ward of the court and lastly not a student who is looking to attain a college or professional degree.
  • Student must be a citizen of the US, resident permenantly or eligible non resident. ALso no loan default as well as overpayment on student loans.

How Parents Get Parent PLUS Loans

If you are serious about getting a loan for you student through the Parent Plus Loan program, then the parent needs to fill out two things; a Direct PLUS Loan Application as well as a Mastery Promissory Note. The Direct PLUS Loans Application is where you will fill out personal information and will figure out how much money you can qualify for, and the Master Promissory Note is the legal papers in which the parent states that they will repay the debt as well as the major terms of the Parent PLUS Loan. It is important to remember that if you intend on using Direct PLUS Loans for multiple years, you will need submit a request for a loan each year.


Graduate PLUS Loans Major Overview

September 5, 2011

Graduate PLUS Loans

Graduate PLUS Loans are federal student loans given out by the Department of Education, and are set up specifically for graduate as well as professional students to obtain the money they needed afford their college degree. Also called the GradPLUS Loan, this loan allows a student to borrow up to the cost of their education as well as other aspects of your school life like supplies, room and board books and more, minus whatever else you are receiving in the form of financial aid.

Graduate PLUS Loans

The total amount of money you can get is decided by your specific school, and is determined off the information that you fill out on the Free Application for Federal Student Aid, whichi the FAFSA is a mandatory requirement if you want to recieve a Graduate PLUS Loans, as well as will possibly qualify you for receiving other aid like scholarships and grants.

Graduate PLUS Loans – Benefits & Terms

The Graduate PLUS Loans offer many benefits to their borrowers which are all applicable if the student attends school on at least a half time basis, some of which include:

  • A fixed interest reate at what is currently 7.9 percent.
  • A standard repayment period of 10 years, and a possible extended repayment program of up to 25 year repayment, making montly payments much more affordable.
  • Monthly loan payments are more often than not considered tax deducatable.
  • You do not have to have a cosigner to be accepted.
  • You do not have to pay loan payments until after school is finished if you are enrolled in at least a half time schedule.
  • There is a 4 percent activation/origination fee which is taken when the loan is dispersed.

Other Graduate PLUS Loans Details

  • You funds go directly to the school you are attending. All of your expenses will be paid first, then if there is anything left from the loan, you will receieve a check.
  • You must not have a negative credit history to obtain Graduate PLUS Loans. If you do, you will need to provide a cosigner who has a positive credit history.
  • Loans are unsubsidized meaining that they do not require you to show your financial need in order to recieve a Graduate PLUS Loan.
  • Payment is to start 60 days after the conclusion of your schooling, or 45 days after student stops attending school on a half time basis.

Do You Have A Good Credit Score?

If by chance you have a good credit score or can find a cosigner that has one, the best option would be to apply for different graduate loans first before you try for Grad PLUS Loans. This is stated as the interest rate is higher than most if not all federal loan programs. But overall, federal loans should be your first choice when it comes to money for grad school as they have lower interest rates, more lenient terms when it comes to reayment as well as consolidation and bankruptcy options. If after your apply for Graduate PLUS Loans or federal loans in general, and still aren’t receiving enough mony, then use private loans as a last resort.