Loans to Parents
The Federal Direct PLUS (Parent Loan for Undergraduate Students) Loan Program is a credit-based loan and is available to assist parents with the financing of their student’s educational expenses. This loan allows a parent to borrow up to the total cost of education less the amount of financial aid that has been awarded to the student.
The interest rate is fixed at 7.9%. Interest begins accruing from the date of the first disbursement (fall semester) with repayment beginning within 60 days of the final annual disbursement (spring semester). The loan payments may be deferred while the student is enrolled. The funds are delivered electronically to the student’s school account. A 3% origination fee is deducted prior to each disbursement.
In the event you are not eligible to borrow under the PLUS Loan Program, your student has the option to apply for an additional Unsubsidized Stafford Loan (additional eligibility for freshmen and sophomores is $4,000/yr and $5,000/yr for juniors and seniors). You should notify the Financial Aid Office if you choose this option. Please contact our office should you have any questions concerning this program.