Federal PLUS Loan
The Federal PLUS Loan is borrowed by a graduate student (Graduate PLUS Loan) or parent of a dependent undergraduate student (Parent PLUS Loan) to help defray the cost of tuition and other school related expenses. To qualify for this low interest student loan, the borrower must pass a credit check and the student must be enrolled at least half time.
There are two repayment options.* Payments may begin either:
- Six months after the student graduates, leaves school, or is no longer enrolled at least half time.
- Within 60 days of the full loan disbursement.
Interest accrues from the date of the first loan disbursement. Interest can be paid as it accrues or can be rolled into the loan's principal balance.
PLUS loans are non-need based, federally guaranteed student loans. Applicants need not demonstrate financial hardship to qualify. If federal student loans, scholarships, and grants do not meet tuition costs, PLUS loans help to fund most remaining costs at a fairly low interest rate. The yearly limit on PLUS Loans equals the student's cost of attendance less any other financial aid received.
*For loans made on or after July 1, 2008
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