Federal Parent PLUS loans
The federally sponsored Parent PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child's education (less other financial aid).
Savings
After your student has applied for grants and scholarships that don't have to be repaid, and explored a low-cost Stafford Loan, consider an economical Parent PLUS loan to help cover the costs of college. With Sallie Mae Education Trust as your PLUS lender, you can earn an interest rate reduction with automatic debit payments!
See How to earn these borrower benefits.
Eligibility
- You may apply for a Parent PLUS loan to pay for the higher-education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- A credit check is required.
Features
- Flexible repayment options are available.
- Postpone repayment until six months after the beneficiary student leaves school or drops below half-time enrollment.
- You can manage your account online 24/7.
- You get life-of-loan servicing from Sallie Mae.
- There is no prepayment penalty.
- There are no income or collateral requirements.
- Interest may be tax-deductible.
- We have an easy online application and approval process with an instant credit decision.
And, when you join Upromise,® you can use your Upromise rewards to help pay down balances automatically on your eligible Sallie Mae-serviced student loans by linking your Sallie Mae® account to your Upromise account with Upromise Loan LinkSM! To learn more, or to join Upromise now, go to www.salliemae.com/upromise.
Loan terms
Loan limit
You may borrow up to the full cost of your child's education less other aid received.
Interest rate
The interest rate for Parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.
There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged.
Legal
- You are responsible for all interest that accrues on the Parent PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
- For loans first disbursed July 1, 2008 or later, parents may choose to begin repayment on PLUS loans within 60 days after the final disbursement of the loan or six months after the beneficiary student leaves school or drops below half time. During any deferral period, interest will accrue and any unpaid interest will be capitalized on the unpaid loan balance.