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The Federal PLUS Loan is for parents of undergraduate students and
graduate/professional students. Qualifying borrowers may also receive an additional .25% rate reduction
on loans disbursed on or after July 1, 2008 when they enroll to make automatic electronic payments.
Eligiblity: Credit worthy parents of
undergraduate & graduate/professional students. Students must be attending
at least half-time.
Interest Rate: The federal interest rate is fixed at 8.5%.
Borrowers who sign up to make automatic electronic payments get an additional .25% interest
rate reduction on loans disbursed on or after July 1, 2008.
Fees: A one-time 3% origination fee will be
deducted from the loan amount. (i.e. 3% less is disbursed to the
college). A 0-1% default fee may be deducted depending on the
guarantor. (i.e. 1% less is disbursed to the college).
Loan limits: You may borrow up to the cost of
education minus any other financial aid.
Repayment: Repayment begins within 60 days after the loan is fully disbursed. The repayment term is up to 10 years (extended repayment up to 25 years available for borrowers with balances greater than $30,000).
Graduate students can make no payments while in school. Interest accrues during this period.
Parents can choose to delay payments until 6 months after the student leaves school or drops below half-time status. (see below)
PLUS Deferment
Effective July 1, 2008: Borrowers with parent PLUS loans disbursed on or after July 1, 2008,
now have the option to postpone their monthly payments through a PLUS loan grace period.
Payments will be postponed until six months after the date the student for whom the loan(s)
was obtained is no longer enrolled at least half-time. Interest will continue to accrue while payments are postponed
. Although principal payments are not required during this period, borrowers
have the option to pay accruing interest either monthly or quarterly. Following this grace period,
repayment of the loan(s) will begin according to the terms of the Promissory Note(s) and repayment agreement(s).
Important: In order to postpone payments on a parent PLUS loan, you must apply for a PLUS loan deferment while the
loan is in grace period and prior to the loan entering repayment.
PLUS Deferment form
(Form must be completed and processed before the last disbursement on your loan)
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.25% interest rate
reduction for automatic electronic payments via ACH (on loans disbursed on or
after July 1, 2008).
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Graduate & professional students make no payments while in
school.
PLUS loans require credit approval
RISLA reserves the right to modify or terminate
borrower benefit programs at its discretion and without prior notice.
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