Plus Loan


Plus Loan

Plus Loan

A Plus Loan is considered to be a student loan that is offered to parents of students who are enrolled in an eligible post-secondary institution or for graduate/professional students. A Plus loan is offered through the Department of Education through schools that participate in the Direct PLUS Loans programs. A PLUS loan is an unsubsidized loan that helps pay for education expenses up to the cost of attendance for the student. A PLUS loan is anticipated to help supplement any other loan programs that the student may be eligible for. A PLUS loan should be used as a last resort to funding your student’s education. If you want to receive a PLUS loan, you and your child will need to meet certain eligibility requirements for any federal student aid program.


In order to receive a PLUS loan, you or your student will need to fill out the Free Application for Federal Student Aid (FAFSA). The financial aid office at your child’s school will be able to provide the information that you will need to pursue a PLUS loan. When you are applying for a PLUS loan, a credit check will be accessed during your application process. If it turns out that you have some adverse history in your credit report, then you may need to obtain an endorser who does not have any adverse history with their credit report. Once you are eligible for a PLUS loan, you will be required to sign a Master Promissory Note (MPN) that tells the lender that you agree to the terms of the PLUS loan. The most that you can borrow with a PLUS loan is the cost of attendance, which is determined by the school, minus any other financial assistance that may have been received. The interest rate for a PLUS loan is usually a fixed rate of 6.41%. There will also be a 4.288% loan origination fee on all PLUS loans that are disbursed. Once the PLUS loan is disbursed, your loan servicer will contact you and offer you the details on how and when to repay your PLUS loan. There are various payment plans for PLUS loans that are intended to meet the needs of every individual borrower.