PLUS
LOAN PROCEDURES - 2008-2009 Parents can apply for a Federal PLUS loan to
cover their parental contribution. These loans are borrowed from a private lender
(banks, credit unions, etc.) and require a credit check. Many families
find PLUS an attractive alternative to using lifetime savings and investments
for educational expenses. PLUS has a fixed interest rate of 8.5%. Parents and
step-parents can borrow to cover educational costs for dependent undergraduate
students who are enrolled at least half-time. Borrowers must be U.S. citizens
or eligible residents. Parents can borrow the full cost of education minus any
other aid the student receives. When completing the Loan Amount
requested, note that the maximum yearly loan amount is the total cost of education
MINUS other aid received, including a student loan.
| First-Time Borrowers |
Returning Borrowers | |
Choose a lender. |
Choose the same lender you had previously for
the PLUS loan. | |
Complete a PLUS Master Promissory Note at the lender site. |
Your PLUS Master Promissory Note is valid from a previous year. |
| Confirm your credit standing
with your lender. | Confirm your credit
standing with your lender. |
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