Borrower is parent of a dependent undergraduate student
The loan is in the parent's name for the life of the loan
Can be discharged in the event of death or disability
Parent must pass a credit check or parent can add a credit-worthy endorser (co-signer)
If parent does not pass credit check or choose an endorser, student can get additional Direct Unsubsidized Loan
Can borrow up to the cost of education less any other aid received
7.6% fixed interest rate for 18-19 academic year
Federally mandated 4.248% fee subtracted upon disbursement for 18-19 year
Repayment begins 60 days after loan is fully disbursed but payment can be deferred while student is enrolled. Parent must contact Direct Loan Servicing at 800-848-0979 to request deferment or indicate preference on loan application.
Be sure to compare the Direct PLUS Loan with the Private Student Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a no fee, private loan could be more cost effective. Please compare your options carefully.
Steps to Receive a Federal Direct Parent PLUS Loan:
Can be discharged in the event of death or disability
Student must pass a credit check
Can borrow up to the cost of education less any other aid received
7.6% fixed interest rate for 18-19 year
Federally mandated 4.248% fee subtracted upon disbursement for 18-19 year
Automatic deferment for Federal Direct Grad PLUS borrower while enrolled at least half time
Can be consolidated at fixed rate with other federal loans (see https://studentaid.gov for details)
Be sure to compare Graduate PLUS Loans with Private Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a no fee, private loan could be more cost effective. Please compare your options carefully.
Steps to Receive a Federal Direct Graduate PLUS Loan: