| The Federal Direct PLUS Loan program is a non-need-based federal loan program available to parents of dependent students.
For a detailed explanation from the Department of Education, refer to the brochure Direct Loan Basics for Parents, which is available
online at: www.ed.gov/offices/OSFAP/DirectLoan/pubs/parentbasics.pdf |
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| Eligibility Criteria |
Parent and Student must be:
- U.S. citizens or eligible non-U.S. citizens
- Not in default on prior educational loans
Parent must:
- Borrow on behalf of dependent student
- Meet federally defined creditworthiness standards
Student must be:
- Enrolled at least half-time in a degree program
- Making satisfactory academic progress
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| Annual Loan Limits |
| Cost of attendance minus other aid. |
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| Fees |
| 2.5% origination fee (4.0% with a 1.5% rebate if first 12 monthly payments are made on time) |
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| Interest Rate |
| The fixed rate is 7.9%. See www.ed.gov/offices/OSFAP/DirectLoan/calc.html for rate information. |
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| Repayment Terms |
| Repayment of principal begins within 60 days of disbursement. Borrowers are responsible for paying the interest while student is enrolled, but may choose to defer the interest payments. There is a 25 year maximum repayment period. |
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| Deferment Options |
For Direct PLUS Loans that are first disbursed on or after July 1, 2008, parent borrowers have the option of deferring repayment based on the enrollment status of the dependent student on whose behalf a Direct PLUS Loan was obtained. Specifically, parent Direct PLUS Loan borrowers may defer repayment as follows:
- While the dependent student on whose behalf the loan was obtained is enrolled at least half-time, and;
- During the 6-month period after the dependent student on whose behalf the loan was obtained ceases to be enrolled at least a half-time.
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| Loan Consolidation |
| Existing Federal PLUS loans can be consolidated, which may lower your monthly payments. After disbursement of the loan, see www.dlssonline.com or call (800) 557-7392. |
