...you borrow conservatively, especially during the student's first year. Please keep in mind that you may need to borrow each year your son or daughter is in school to help meet the cost of education. Plan accordingly and keep loan debt manageable.
What are Direct PLUS Loans?Direct Parent Loans for Undergraduate Students (PLUS) are federally guaranteed loans available to help pay for your child's educational expenses. In order to be eligible for a Direct PLUS Loan, you must have an acceptable credit history and your son or daughter must be enrolled at least half time (at least 6 credits) and making satisfactory academic progress toward their degree. Both the borrower and the student must be U.S. citizens or eligible non-citizens.
How much can I borrow?The annual limit on a Direct PLUS Loan is equal to the cost of attendance less any other financial aid that the student is receiving. For example, if the cost of attendance is $15,000 and the student is receiving $7000 in other financial aid, then you could borrow up to--but no more than--$8000. A 4.204% origination fee is deducted from each Direct PLUS loan.
What is the interest rate?For Direct PLUS Loans first disbursed on or after July 1, 2013, and before July 1, 2014, the interest rate is 6.41%.
For Direct PLUS Loans first disbursed on or after July 1, 2014, and before July 1, 2015, the interest rate is 7.21%.
Interest is charged on a Direct PLUS Loan from the date of the first disbursement until the loan is paid in full.
Academic year (August - April) - Approximately mid-May Summer (May – August) – Approximately mid-March