Federal Loan for Parents (PLUS)
October 1, 2007: Federal legislation recently signed into law may affect lender benefits. Lenders may revise benefits at their discretion. Please contact any lender that you have used or are considering using for your student loans and ask how this affects your past or future loan terms.
Students should always apply first for scholarship/fellowships and grants. Only after determining eligibility for these types of aid, which do not need to be repaid, should a student consider a loan.
By completing the FAFSA, students are considered first for grants, work study, and Federal Stafford Loans, which are guaranteed by the federal govenerment. If additional assistance is needed beyond scholarship/fellowships/grants and Stafford loans, then the parent of an undergraduate student may consider additional eligibility to borrow through the Federal Loan for Parents (PLUS).
For Parents of Dependent Students:(PLUS)
The Federal PLUS Loan is a loan for the parents of dependent For Parents of Dependent Students:
The Federal PLUS Loan is a loan for the parents of dependent undergraduate students to help pay for their child's education. The Federal PLUS loan is not based on financial need; however, FSU requires completion of the FAFSA application before processing of a PLUS loan. Parents may borrow the full yearly cost of the student's education (the Cost of Education as established by the Office of Financial Aid), minus all other eligible financial aid. There is no cumulative borrowing limit. Repayment begins 60 days after the final loan disbursement and interest begins to accumulate at the time the first disbursement is made. The maximum repayment term for the Federal PLUS is 10 years. A credit check is required for PLUS pre-approval.
Interest Rates and Fees
The interest rate on new PLUS Loans first disbursed after July 1, 2006 will be a fixed rate of 8.5%.
The interest rate on existing variable rate PLUS loans (loans disbursed prior to July 1, 2006) will continue to change annually on July 1, based on the last 91-day T-bill auction in May.
Maximum PLUS loan fees: 4%.
How to Apply:
To apply for a PLUS loan, the parent borrower will need to go through an application process with an FFELP/PLUS lender that participates in the PLUS loan progam. Many will have online (internet based) and/or toll-free phone application processes to allow you to apply for PLUS consideration.
Once the loan has been approved, the lender will send the approved information to FSU. We then transmit our data to the lender to confirm the cost of attendance and eligibility.
The parent borrower must complete a Master Promissory Note with the lender and complete a Parent Disbursement Authorization form with FSU before any disbursement can be made.
If your financial aid is equal to or greater than your estimated cost of attendance, then you will not qualify for a PLUS loan, even if you are approved by a FFELP/PLUS lender.
Notes:
- You may use any lender that is approved to participate in the Federal Family Educational Loan (FFELP) Program by the U.S. Department of Education and who offers Federal PLUS loan funding.
- The lenders below are provided as a starting point for your research. For questions on specific benefits or service, call the lender directly.
- You are not required to use an FSU recommended lender.
- Selection of a non-recommended FFELP approved lender will not delay your loan processing.
last update: August 01, 2008
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