Answered By: Abigail Caraccio Last Updated: Feb 13, 2018 Views: 132
Federal PLUS Loans are available to all parents of dependent undergraduate students regardless of income. Qualification is based solely on good credit. There are no debt-to-income ratio guidelines or employment verification requirements. Parents may borrow up to the total education cost for the year, minus any other financial aid that the student is receiving. The total education cost can include tuition and fees, room and board, books and supplies, transportation, and living allowance. The interest rate for Direct PLUS Loans is 7.9%. A federal loan fee of up to 4% may be deducted from the loan disbursement. PLUS loan repayment normally begins within 60 calendar days after the loan has been fully disbursed. In certain circumstances, parents may elect to repay the loan on a graduated repayment schedule, making interest-only payments for a portion of the repayment term. The minimum payment amount is based on the term of the loan and must be at least $50 per month.
For more information on this topic, please contact The Office of Financial Aid at firstname.lastname@example.org