The Federal PLUS loan is available to a parent to cover the expected family contribution as a supplement to other financial aid sources. The yearly limit on a PLUS Loan is equal to the student's cost of attendance less any other financial aid received. This loan is subject to a one percent federal default fee assessed at time of disbursement.
PLUS loans have a fixed 7.9 percent rate under the Direct Loan Program. Payments usually begin 60 days after loan is fully disbursed each year. While interest begins to accumulate at the time the first disbursement is made, parents have the option of making interest only payments or deferring all payments so long as the student is enrolled at least half-time for up to a period of four years. Parents must contact the lender directly to arrange a forbearance. Either of these choices will result in more interest being paid if only minimum payments are made during repayment. Average monthly payment is approximately $50 per month for every $4,000 borrowed.
Parents can access the forms to complete loan process here. Approval for this loan is dependent upon satisfactory credit.
Some graduate students may be eligible on a case-by-case basis for a Grad PLUS loan. Contact the CSA Office for more information.
Department of Education Toll-Free Phone Number for Borrowers
Borrowers whose Stafford or PLUS loan(s) was sold to the Department of Education to maintain liquidity in the FFEL Program, can reach the Department of Education Student Loan Servicing Center at 800.508.1378 between 8 a.m. and 11 p.m. (ET), Monday through Friday.
National Student Loan Data System
You can review the status of your loan online at www.nslds.ed.gov using your FAFSA PIN for access. This site will list all of the federal student loans you have taken from all lenders. Each loan listed will show the current holder of the loan and servicer.