Federal Plus Loan
PLUS loans: PLUS loans enable parents of dependent students and graduate students with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half-time.
Interest Rates and Repayment:
The interest rate is variable (6.79% during 2001-2002) with a cap of 9%. The interest rate is adjusted each year on July 1. A fee of up to 4% will be deducted from each disbursement. Interest begins immediately. Repayment generally begins within 60 days after the final loan disbursement for the academic year with a maximum repayment period of ten years.
When Does Repayment Begin?
Repayment begins immediately after disbursement of funds. For loans borrowed on or after July 1, 2008, parents may request for repayment to be deferred while their student is enrolled at least half-time or is in the 6-month grace period. Parents must check with their lenders to obtain information on repayment procedures.
Repayment begins immediately after disbursement of funds. For loans borrowed on or after July 1, 2008, Parents must check with their lenders to obtain information on repayment procedures.
Federal regulations require lenders to make a minimum of two disbursements of all PLUS Loans. For students enrolled in more than one quarter in a particular aid year, the loan will be disbursed in roughly equal installments for each term. For students enrolled in only one term, the first disbursement is usually made by the second week of the term, and the second disbursement is made on or after the midpoint of the term.