Federal PLUS Loans are a relatively low-cost financing alternative available to parents of college students. The interest you pay on these loans may be tax deductible, and eligibility is not based on financial need. Parents may use a PLUS loan as a supplement to a Stafford Loan or as the sole loan to cover the cost of education.

Eligibility

• You must be parent, stepparent or adoptive parents of a dependant, undergraduate student who is attending college at least half-time;
• You must be a United States citizen or eligible non-citizen;
• You must have no unresolved defaults or overpayments owed on a Title IV education loan or grant; and
• You must pass a minimal credit check.

Rates and Fees

• Current interest rate is 7.9 percent
• No application fees
• Loan fees may consist of a guarantee fee of up to 1.5 percent

Repayment

• PLUS loan repayment begins within 60 days after final disbursement of the loan.
• The minimum monthly payment is $50, and the repayment term is up to ten years.
• You can pre-pay the loan in whole or part without penalty.
• You may defer principal and interest payments for up to 48 months while your child is in school.

To apply for a PLUS Loan

• Confirm your credit eligibility and determine the amount you need to borrow.
• Visit studentloans.gov and fill out a Master Promissory Note.