Federal Direct Parent Loan for Undergraduate Students (PLUS)

Federal Direct PLUS Loans are non-need based loans for the parents of enrolled, dependent students. Under this program, parents can borrow up to the total cost of education minus their student's expected financial aid. Repayment begins 60 days after the loan is fully disbursed. Deferment options are available.

• PLUS is available to parents of dependent students. Undergraduate students are not eligible to borrow in the PLUS program. However, graduate students may borrow under PLUS for Graduate Student.


  Summary Information
  How much should you borrow?


• Rutgers requires the following three (3) documents to process PLUS:

  1. Free Application for Federal Student Aid (FAFSA)


	Why should I file a FAFSA?
	Although the FAFSA is not a federal requirement to receive a PLUS Loan, Rutgers prefers students have a FAFSA on file. By filing the FAFSA, federal loans can be maximized at lower interest rates. Currently, the interest rate for PLUS is 7.9%. With a FAFSA on file, your dependent student would be packaged with the maximum amount allowed under the Federal Stafford Loan Program. The current interest rate for Federal Direct Stafford Loans is 6.8%.
	In constructing our aid packages in this fashion, Rutgers effectively reduces the overall burden of educational loan debt upon graduation. By maximizing borrowing under the Federal Stafford Loan Program, students can borrow at a rate in excess of one full percentage point before parents start borrowing at a higher rate.

   2. Loan Amount Request and Release Form submitted by borrowers.

  Academic Year 2009-2010


  3. PLUS Master Promissory Note, signed and submitted by borrower.
         (If the borrower is requesting an increase to an existing PLUS loan for the same
         Academic Year simply complete, print and fax the Increase Request Form)

• Credit Check approval required.



• If PLUS loan denied, the student may request an additional unsubsidized Stafford loan.



• Loan Repayment Estimator

The current interest rate for Direct PLUS is 7.9%. The current origination fee is 2.5% (4% minus 1.5% rebate).


• More PLUS Info


If you need further assistance, please contact your regional Financial Aid Office.