The Federal Parent Loans for Undergraduate Students (PLUS) program provides loans to parents of dependent undergraduate students (and now to students in graduate or professional programs) through private lenders and directly through schools participating in the Direct Loan Program.
Who is Eligible?
PLUS borrowers do not have to show need for the program, but may have their credit checked.
How Much Money Can You Get?
Borrowers may borrow up to the cost of attendance minus any other financial aid received. There is no cap on annual or aggregate borrowing amounts.
PLUS loans taken out before July 1, 2006 have a variable interest rate that changes annually. The maximum interest rate is 9 percent.
Loans made on or after July 1, 2006 have a fixed interest rate of 8.5 percent.
The guarantor may charge an insurance premium of one percent of the loan principal, plus an origination fee of three percent.
More than 500 lenders in Minnesota participate in the program, including banks, savings and loan associations and credit unions. Borrowers unable to find a PLUS lender should contact the Great Lakes Higher Education Guaranty Corporation at (651) 290-8795 or (800) 366-0032.
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What Are Your Repayment Options?
Repayment of both principal and interest begins within 60 days of receiving the loan and extends from five to 10 years. The amount borrowed determines the minimum monthly payment, but no payment will be less than $50 a month.
Borrowers can choose a standard, extended or graduated repayment plan.