The federal Parent Loan for Undergraduate Students (PLUS) loan is a minimal interest parent plus loans available for parents of dependent students. With a PLUS loan, parents can finance the complete cost of their child's education.
LoanTerms:
A parent may borrow up to the total cost of your child's tuition, minus any financial aid.
Eligibility :
To qualify for a Parent Loan for Undergraduate Students loan, you must be a U.S. citizen, permanent resident, or eligible non-citizen. You are also required to have your undergraduate student listed as a dependent. Credit checks are also required before loan acceptance.
InterestRates:
PLUS loans first distributed on or after July 1, 2006 are at a fixed interest rate at 8.5%
Repayment :
With a PLUS loan, there are many flexible repayment options available:
Standard repayment: This plan has the lowest total interest cost. Monthly payments must be both interest and principal for up to the maximum 10-year repayment term.
Graduated repayment: The Graduate repayment plan requires lower payments in the early years and enlarged payments thereafter. Monthly payments must total the entire loan within the maximum 10-year period.
Income-sensitive repayment: The Income-Sensitive repayment option requires you to reapply every year and payments are changed yearly to reflect adjustments in income. Monthly payments are calculated using a percentage of your gross income.
Extended repayment: If you already have accumulated student loan debt, you may be qualified for a 25-year repayment term and the choice of standard or graduated repayment plans to keep monthly payments reasonable.
Student loan consolidation : Using student loan consolidation, you can considerably decrease your monthly payments; however it will result in a larger total loan cost. You normally merge your current loan debts into a new single loan with one monthly payment and a fixed interest rate.
