Federal PLUS Loan

Loans designed for the parents


The PLUS loan 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.

PLUS Loan Snapshot

  • Less costly than many other options; variable interest rates are adjusted annually. The current rate is 6.90%.
  • 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).

How Much Can You Afford to Borrow?

Before signing up for a PLUS loan, consider how much you can afford to repay on a monthly basis. Use this loan payment calculator to estimate payments based on how much you borrow.


ABOUT THE AUTHOR

This article was written by College Loan Corporation

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.

1 Comment

  1. Temeca Andrews

    Need more financial help

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