Federal PLUS (Parent) Loans

PLUS Loans are low cost federally insured loans made to parents of dependent undergraduate students. Parents may borrow a PLUS Loan to meet their student's educational costs, less any other financial aid that may have been awarded. Loan funds must be used toward school budgeted costs such as tuition, fees, books, supplies, room and board, and miscellaneous expenses.

Eligibility is not based on need or income, but approval of the loan is based on a review of the parent's credit history. Parents may borrow for each child enrolled in school. A separate Master Promissory Note (MPN) is required to be completed for each child. The MPN is good for 10 years.

• Eligibility Criteria
• Loan Limits, Fees and Other Information
• Loan Conditional Approval
• Application Process
• Repayment and Interest

Apply for a PLUS (Parent) Loan

Eligibility Criteria:

The parent or stepparent must:

• be the natural or adoptive parent of the student,
• be a U.S. citizen or an eligible non-citizen,
• not be in default on any student loan, and
• not have an adverse credit history as determined by the lender and federal regulations.

The student must:

• be the legal dependent of the parent applying for the loan,
• be enrolled at least half-time at a federally accredited school ,
• not be in default on any student loan,
• maintain satisfactory academic progress,
• comply with selective service registration,
• not owe a refund on any federal student grant, and
• not be incarcerated.

Loan Limits, Fees and Other Information:

Federal Family Education Loan Program (FFELP)

Federal PLUS (Parent) Loan
Borrower	Parent
Annual Loan Limit	Cost of Attendance Minus Aid
Aggregate Loan Limit	Cost of Attendance Minus Aid
Interest Rate	Fixed at 8.5%1
Federal Default Fee	1%2
Federal Origination Fee	3%
Credit Check	Yes
Must Show Financial Need	No
Repayment Term	Up to 10 years
Repayment Begins	30 days after the loan is fully disbursed
Delayed Repayment	An option is available to delay the start of repayment during the time the student (for whom the loan was made) is enrolled in school at least half-time and 6 months thereafter3

Loan Conditional Approval:

To obtain a PLUS Loan approval before completing an application, National Education provides an optional Conditional Approval service. The online Conditional Approval provides the credit decision in a matter of seconds. A PLUS Conditional Approval Form is also available to authorize us to access your credit and render the conditional approval decision.

Should a credit concern arise, our staff can work with you to resolve the matter and then reconsider the loan request. Another option is to complete a PLUS Endorser Addendum. Contact us if you have any questions regarding your options.

Conditional Approval for a PLUS Loan is not required. The credit review can be completed at the time of application.

Application Process:

Click here for more information

Repayment and Interest:

PLUS Loans must be repaid. Repayment begins within 30 days from the final disbursement of the loan.

You may opt to delay making payments on the PLUS Loan while the student is enrolled in school at least half-time and 6 months thereafter. Payment of the interest on a PLUS Loan is always the responsibility of the borrower. National Education will send quarterly interest statements during the delayed repayment period and you may choose to make payments. It is your choice to either make interest only payments during this time or have the interest accrued and added to the principal prior to repayment commencing. (capitalization)

Alternative payment plans, deferments and forbearance are available to help you manage the repayment of your PLUS Loan. Select a different payment plan to fit your budget. You can reduce your initial payments by up to 40%.

Tips to remember:

• The parent is the borrower and is responsible for paying back the loan.
• PLUS Loans are expected to be repaid within ten years.
• The interest rate is fixed at 8.5% for PLUS Loans made on or after July 1, 2006. (see current interest rates).
• Repayment begins within 30 days after the final disbursement of loan funds.
• PLUS Loans do not have a grace period but you may opt to delay repayment while the student is enrolled in school at least half-time and 6 months thereafter.
• There is no penalty for early repayment; you can pay more than the monthly amount if you wish.
• National Education offers alternative payment plans.
• If you have any questions, contact us.

We reserve the right to modify or discontinue benefit programs at any time without notice. Any termination or modification of the program will not affect the terms of loans previously made. Specific terms and conditions may apply, please call us if you have any questions.