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Federal PLUS Loan
Loans designed for the parents
The Parent Loan for Undergraduate Students (PLUS) is designed for parents of dependent, undergraduate students. Parents can borrow up to the full cost of their child's education, less any financial aid that the student has received. A credit check is required for the government-guaranteed PLUS Loan; however, eligibility is not based on financial need. Funds can be used for unmet financial needs or to cover your family's Expected Family Contribution (EFC). Be sure to check with your school; some private colleges and universities do not permit families to use the PLUS Loan as a means to pay your EFC.
Paying for College
PLUS Loan Snapshot
- Less costly than many other options; variable interest rates are adjusted annually. The current rate is 6.10% (maximum is 9%).
- Available to cover the total cost of education, minus any other financial aid awarded to the student.
- Available with minimal credit requirements.
- Flexible, with deferment and forbearance provisions that allow you to postpone payments under certain circumstances.
- Tax deductible, depending on your personal situation (consult your tax advisor for more information).
Preliminary Projected Monthly Payment, Federal PLUS Program (Interest Rate: 6.10%*)
| AMOUNT BORROWED | NUMBER OF PAYMENTS | ESTIMATED PAYMENT** | MONTHLY RECOMMENDED ANNUAL SALARY |
|---|---|---|---|
| $2,625 | 62 | $50 | $7,500 |
| $6,125 | 120 | $68 | $10,246 |
| $11,625 | 120 | $130 | $19,447 |
| $17,125 | 120 | $191 | $28,648 |
| $23,000 | 120 | $257 | $38,476 |
| $31,125 | 120 | $347 | $52,067 |
| $39,625 | 120 | $442 | $66,287 |
| $48,125 | 120 | $537 | $80,506 |
| $56,625 | 120 | $632 | $94,725 |
| $65,500 | 120 | $730 | $109,572 |
Recommended annual figures are based on 8 percent of income available for student loan repayment.
Generally, manageable student loan payments range between 5 and 15 percent of income.
* Repayment rate for July 1, 2005 through June 30, 2006.
** Minimum payment of $50.
TIP: Many lenders offer incentives to help minimize the cost of the loan. At College Loan Corporation, our first-class service is complemented by great borrower benefits.
College Loan Corporation (CLC®), headquartered in San Diego, is the nation's seventh largest student loan provider, owning and managing more than $8 billion in student loan assets. CLC has helped more than 500,000 students and families pay for college. More than 800 colleges and universities have designated CLC as a preferred lender. CLC makes higher education possible through innovative loan products and industry-leading, first-class customer service. CLC also offers the nation's best student loan advice line, answered by expert Loan Consultants 24 Hours a Day, 7 Days a Week.
To request your free custom information packet on PLUS Loans, click here.
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