The Parent Loan for Undergraduate Students (PLUS) is a loan available to the parents of a dependent student. A parent may borrow to cover the cost of a college education on behalf of a child regardless of the family’s income.
- Parents may borrow up to the full cost of their dependent’s cost of education, less the amount of any financial aid received.
- The PLUS loan has a fixed interest rate at 7.9%.
- Parents have two repayment options:
- Begin repayments 60 days after the loan is fully disbursed. The minimum payment is $50 per month.
- Payments may also be deferred until the student has completed college or is enrolled in less than half time hours.
- The typical repayment term is 10 years.
- There will be a 3% origination and 1% default fee automatically deducted from the disbursements.
- The parent is responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full.
- You must be a creditworthy borrower.
HELPFUL HINT: The first monthly payment on your PLUS loan (for a fall/spring student) is not due until February. This gives you five to six months in which you could save the amount of the PLUS loan to apply toward future years, thereby reducing the amount you would need to borrow in future years.
After the PLUS loan application has been completed, OC will be notified of the status of your PLUS loan. If (and only if) your PLUS loan is denied, OC will be authorized by federal law to offer your student an additional $4000 (for freshmen or sophomores) or $5000 (for juniors and seniors) unsubsidized Stafford loan.
To apply for a Parent (PLUS) loan, please use the following link - www.studentloans.gov.