OVERVIEW
Parents who have an acceptable credit history may take out a PLUS loan for their dependent (as defined by the Free Application for Federal Student Aid) undergraduate children who are enrolled at least half-time at any eligible postsecondary school.

GRAD PLUS LOANS
Graduate and professional students may also apply for a PLUS loan, often referred to as a GRAD PLUS loan. Before applying, a graduate or professional student must first complete the Free Application for Federal Student Aid and must be eligible for his or her maximum loan amount under the Federal Subsidized and Unsubsidized Stafford Loan Program.

LOAN LIMITS
According to federal regulations, parent borrowers are able to borrow up to the student's cost of attendance (as determined by the school) minus any other aid the student is receiving.

For example, a student attending XYZ University has a cost of attendance of $20,000 as determined by the financial aid office at XYZ. If the student is receiving a $2,000 grant from the school, the maximum amount that the parent can borrow is $18,000.

INTEREST RATES
The interest rate for PLUS loans made on or after July 1, 2006, is fixed at 8.5%.

PLUS LOAN REPAYMENT
Standard full repayment begins 60 days after the funds are fully disbursed, and the standard repayment term is up to 10 years. Graduate/Professional borrowers may be eligible for in-school deferments. Learn more about deferring payments, obtaining forbearances, and repayment options.

Repayment for parent borrowers of PLUS loans have the option to postpone loan principal repayment for up to six months after the students for whom such loans are borrowed cease to carry at least one-half the normal full-time academic workload.

APPLICATION PROCESS
Prospective parent/graduate/professional borrowers should contact the financial aid office at their dependent student's/their postsecondary institution to find out if they qualify for a Federal PLUS/GRAD PLUS loan. Once a student has received an award letter from his or her institution that includes the PLUS/GRAD PLUS loan option, parents/graduate/professional borrowers may fill out a Federal PLUS Loan Master Promissory Note that will be mailed to a lender of their choice.

Once the guarantor receives the school's certification on the student's eligibility and the lender has received the parent or graduate/professional borrower's Master Promissory Note, the loan funds will be disbursed.