PLUS Loan Rates

PLUS Loan Interest Rates

  • Federal PLUS parent loans disbursed on or after July 1, 2006 through the U.S. Department of Education’s Direct Loan Program have a fixed interest rate of 7.9%.
  • PLUS parent loans disbursed on or after July 1, 2006 through a third-party lender in the FFEL (Federal Family Education Loan) Program have a fixed interest rate of 8.5%.

PLUS Loan Fees

The Federal PLUS parent loan carries a 3% government origination fee and a 1% guarantee fee (which may be waived by the guarantor). These fees are taken out of the proceeds of the loan, so there’s no out-of-pocket cost to obtain the PLUS loan.

PLUS Loan Repayment Terms

  • The standard repayment term is 10 years.
  • Repayment begins 30 to 60 days after the final loan disbursement is made to the student. Since funds are disbursed at the beginning of each semester, repayment typically begins in March.
  • As of 2008, parents have the option to defer repayment on their PLUS parent loans until 6 months after their child has graduated, left school, or dropped below half-time enrollment. Interest continues to accrue during any deferment period.
  • There are no penalties for prepayment.

Under certain hardship circumstances, alternate repayment options such as income-sensitive repayment and graduated payment plans may be used to reduce or postpone repayment of your PLUS parent loan. Payments may also be postponed by requesting a forbearance or qualifying for a deferment.

All PLUS loan debt is forgiven in the event of death or permanent disability of the borrower or death of the student.

Consolidating Your PLUS Parent Loans

Parents may choose to consolidate their PLUS loans immediately upon repayment in order to extend their repayment terms and reduce their monthly loan payments. Other federal education loans borrowed in the parent’s name may also be consolidated with the PLUS loans for payment convenience.

Apply for a PLUS parent loan

 

Quick Links

» Apply for a PLUS parent loan
» PLUS parent loans: Overview
» Eligibility for PLUS parent loans
» PLUS loan amounts
» Top questions about PLUS parent loans