Federal PLUS Loan*

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.


Begin the Application Process

Quick Links
» Eligibility
» Loan Amounts
» Top Questions about PLUS Loans

Download a PDF Federal PLUS Loan Application


* Please be aware that while we continue to offer Private Student Loans, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications.

On October 1, 2007, legislation went into effect that cut $21 billion in subsidies to FFELP lenders like NextStudent. We have been searching, and continue to search, for avenues that would allow us to keep offering FFELP loans. But at this point, until market and regulatory conditions change, we find ourselves forced to suspend our federal education loan programs.

We value your business, and we want to make sure you’re able to get the money you need to pay for school. We encourage you to take advantage of college scholarships and your available federal financing options. But if you’re still in need of a parent or student loan, please give us a call, and we’ll do what we can to help.

Helpful Resources

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Last updated Saturday, May 17, 2008