Tips on Your Federal Plus Loan Application

The Federal Plus Loan application is on the web at Citi, Wachovia, and other banks.

Who Is Eligible?

Dependent undergraduate students, enrolled half-time or more in an eligible program, can borrow access more financial aid money if their parents apply for a Federal Plus Loan. Parents need too have a good credit history in order to take advantage of this financial aid option.

How Much Can Parents Borrow?

Parents can borrow the difference between the student's annual cost of attending school and their existing financial aid received. If the student pays $8000 a year and gets $4000 in other aid, his parent's can borrow $4000.

Who Does the Money Go To?

After the Federal Plus Loan application is accepted, the money is dispersed to the school and applied to the student's expenses. What is leftover goes back to the parent or they can authorize the student to receive it.

How Much Interest Is Charged?

If the loan was dispersed July 6, 2006 or thereafter:

  • Direct Plus Loans-7.90 %
  • FFEL Plus Loans-8.50 %

If the loan was dispersed from July 1, 1998 until June 30, 2006 the interest rate is variable. It is calculated on July 1st of each year.


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