Govt PLUS Parent Loans Program

Program Description

PLUS loans made by one of two sources:

* Direct PLUS Loans are made by the U.S. Department of Education. You repay a Direct PLUS loan for the U.S. Department of Education.

* Federal PLUS Loan Program are made through Federal Family Education Loan (FFEL). While FFEL funds come from private lenders such as banks and credit unions, which are subsidized and supported by the U.S. Department of Education. You repay a FFEL PLUS loan private lender that made the loan or the designated agency.

If you receive a Direct or FFEL PLUS loan depends on the program in which your school participates. In both cases, the conditions of the loan (loan amount, interest rate and other benefits) are generally the same.

The school applies the PLUS loan funds toward tuition for his son's school fees and meals. If any loan funds remain after tuition is paid, you will receive the remainder of the school, unless you have authorized the school to release the funds for your child. All funds that you or your child receives must be used to pay for education of the child.

General Program Requirements

To qualify for this program, you must:

A) the parent of a dependent college student who works at a postsecondary degree or certificate, and

B) Not have an adverse credit history.

There are other requirements. For more information, read the Student Handbook on-line: http://studentaid.ed.gov/students/publications/student_guide/index.html

Loan Terms

Maximum loan amount: The cost of your child's attendance under other financial aid. For example, if the cost of your child's attendance is $ 6,000, and he or she receives $ 4,000 in financial aid from others, you can borrow up to $ 2.000 PLUS loan.

Interest: Interest is variable (adjusted annually from 1 July), but no more than nine percent. You can indicate at any time the variable changes. For the current rate of the loan plus interest, go http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp?tab=funding.

Maximum length of the loan: up to 30 years, depending on the amount of the loan and repayment plan chosen. There are a number of repayment plans offered through the Direct and FFEL programs. Read the repayment of your student loan repayment online http://www.studentaid.ed.gov/students/publications/repaying_loans/index.html more.

Payment frequency: monthly or quarterly. In general, the first payment is due within 60 days after the loan is disbursed. You must begin repaying the principal and interest while the student is in school.

Prepayment penalties: none

Rates: You pay a fee of up to four per cent of loans, net proportionately each time a payment loan. Because of this deduction, you will receive slightly less than the amount you borrow.

Your next steps

The following information will lead you to the next step to apply for this benefit.

Application Process

If your school participates in Direct Loans, you can get a PLUS loan application directly to your child's school. For a FFEL PLUS loan application, you can get an application to your child's school, a lender that participates in the FFEL program or the guaranty agency in your state.

Note: Although not a requirement, you are invited to a dependent child file a free application for Federal Student Aid (FAFSA), whether he could obtain other student loans or grants. Students can use the FAFSA to apply the Web http://www.fafsa.ed.gov (way faster and easier), or you can get the paper FAFSA in its high school, the municipal library, the school post -secondary, or by calling the Federal Student Aid Information Center 1 - 800-4 FED-AID (1-800-433-3243). TTY for hearing impaired users can call 847-688-2567.

Contact Program

Additional information about Parent PLUS Loans can be obtained:

http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp