From Wikipedia, the free encyclopedia PLUS Loan
PLUS Loan
Student loans in the U.S. • When taken by a parent, becomes a commitment by
Regulatory framework the parent, rather than the student
• Can be incurred in amounts that cover up to the
Higher Education Act of 1965
entire cost of education (including living expenses),
U.S. Dept. of Education
less other financial aid
FAFSA · Cost of attendance
• Offer different repayment plans, though there is no
Distribution channels
interest rate or accrual relief involved in any of the
Federal Direct Student Loan Program plans
Federal Family Education Loan Program • Eligibility is based on the parents or graduate
Loan products students in question not having an adverse credit
Perkins · Stafford history
PLUS · Consolidation Loans
Private student loan
A PLUS Loan is a student loan offered to parents of stu-
Changes as of July 1, 2006
dents enrolled at least half time in eligible programs at Like the Stafford Loan program, the PLUS program
participating and eligible post-secondary institutions or changed to a higher, but fixed rate, structure for loans
graduate and professional students at participating and disbursed after midnight, July 1, 2006. The rate offered
eligible postsecondary institutions. through the Direct Loan Program will be 7.9%.
Additionally, the PLUS program was made available
for graduate and professional students to borrow to fi-
Similarities with Stafford and nance their own educations, commonly referred to as the
Perkins loans Grad PLUS loan.
Amendments were made to the PLUS Master Promis-
PLUS loans share some similarities with the Stafford and sory Note in an addendum to accommodate the changes
Perkins loans offered to students. in eligibility as well as the new fixed rate structure.
• Offered under Title IV of the Higher Education Act of
1965 (with subsequent amendments) and are
therefore backed by the full faith of the United Changes as of July 1, 2008
States Government For PLUS loans made to parents that are first disbursed
• Can be consolidated through the federal student loan on or after July 1, 2008, the borrower has the option of be-
consolidation program ginning repayment on the PLUS loan either 60 days after
the loan is fully disbursed or wait until six months after
Differences from Stafford and the dependent student on whose behalf the parent bor-
rowed ceases to be enrolled on at least a half-time basis.
Perkins loans
• For Direct PLUS Loans first disbursed before July 1, External links
2008, the repayment period for a Direct PLUS Loan
• U.S. Dept. of Education: PLUS Loans (Parent Loans)
begins at the time the PLUS loan is fully disbursed,
• U.S. Dept. of Education: PLUS Loans for Graduate or
and the first payment is due within 60 days after the
Professional Students
final disbursement. However, you may defer
• Financial Aid at the Open Directory Project
repayment while you are enrolled at least half-time.
[1] "Error: no |title= specified when using {{Cite
The repayment schedule for Direct PLUS Loans
web}}". Plus Loans for Grad Students.
disbursed on or after July 1, 2008 is the same as the
http://studentaid.ed.gov/PORTALSWebApp/
schedule for Stafford loans.[1]
students/english/PlusLoansGradProfstudents.jsp.
• The interest rate is fixed at 7.9% and charged from
the date of the first disbursement until the loan is
paid in full
Retrieved from "http://en.wikipedia.org/w/index.php?title=PLUS_Loan&oldid=444503153"
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From Wikipedia, the free encyclopedia PLUS Loan
Categories:
• Education finance in the United States
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