Student Financial Aid Office

Student Financial Aid Office Federal PLUS Loan Program Private Loan Programs PLUS Loans are federally insured and are
discharged in the event of total and permanent
disability or death. PLUS Loans offer a low, variable interest rate
that will never exceed 9.00%. The PLUS Master Promissory Note is good for
10 yearsno need to sign a new note! Approval is not based upon income, financial
need or a debt-to-income ratio. PLUS offers unemployment and economic
hardship deferments. Income-sensitive, graduated and extended
repayment options are available. No loan limitborrow up to the cost of
education less financial aid received. Minimal credit check review. Not federally insured and does not offer
discharge in the event of disability or death. Have variable rates that are reset quarterly
and most have a high interest rate cap. Must re-apply each year for additional funds. Borrowers must meet minimum income and
debt-to-income ratio requirement. No deferment during unemployment or
economic hardships. Income sensitive, graduated and extended
repayment options are not available. Private loans have aggregate loan limits and
most have annual loan limits. Comprehensive credit check required. VS. FEDERAL PLUS LOAN Why should parents choose a PLUS Loan? A PLUS Loan can be used to cover the entire cost of a students education. This includes tuition, room and board, books and other miscellaneous fees. There is no minimum or maximum loan amount - ultimately, the school determines the
amount of which a parent is eligible.
Credit approval is based on the borrowers credit history; not on income or debt to income as many other loans. This is surprising to many parents who would otherwise assume they either make too much or too little to qualify.
Repayment of a PLUS Loan generally does not begin until 60 days after the funds have been disbursed, and has a repayment term of up to 10 years. An in-school forbearance program may be offered by selected lenders. With this
program parents can defer loan payments, including principal and interest, for up to 48 months while the child is still in
school.
The PLUS Loan variable interest rate has a low federal cap of 9.00%. The rate will never go higher, regardless of how high interest may climb.
A PLUS Loan can also provide tax savings and incentives. Parents should check with a tax advisor to determine their eligibility.
Some parents opt for private loans taken out in the students name because they are concerned about having the PLUS Loan appear on their credit report. However, most private loan programs require a co-signer, who is of the parent.
These loans do appear on the co-signers credit report, as they are responsible for the loan in the event the student
borrower does not make payments.
Some PLUS Loan lenders may offer special savings on interest rate and borrower benefits, such as the option to defer principal and interest while your child is in school. These may help reduce a parents overall cost!

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