Federal PLUS Loan*
Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications. However, you may be able to apply for these federal student loans from one of our trusted partners. Click here for more information.
Rates and Terms
Federal PLUS Loans disbursed on or after July 1, 2006 will have a fixed rate of 8.5%.
Fees
The Federal PLUS Loan has a 3% government origination fee and a 1% guarantee fee (which may be waived by the guarantor). Fees are taken out of the proceeds of the loan, so there is no out-of-pocket cost to obtain the loan.
Terms
Parents may choose to consolidate PLUS Loans immediately upon repayment to extend the repayment term and reduce monthly payments. Other federal education loans borrowed in the parent’s name also can be consolidated with the PLUS Loan for payment convenience.
Otherwise:
- The repayment term usually is 10 years.
- Level repayment begins 30 to 60 days after the final disbursement is made to the student. Since funds are disbursed at the beginning of each semester, repayment typically begins in March.
- 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. Payments may also be postponed by using forbearance or qualifying for deferments.
All PLUS Loan debt is forgiven in the event of death or permanent disability of the borrower or death of the student.
QuickLinks
» Loan Amounts
» Rates, Fees and Terms
» Top Questions about PLUS Loans
Download a PDF Federal PLUS Loan Application