Direct PLUS Loan for Parents
The Direct PLUS Loan for Parents is a low-interest, government guaranteed loan available to parents of dependent undergraduate students. This is a non-need based loan for those who do not have an adverse credit history. The interest rate is currently fixed at 7.9% and starts accruing immediately after the first disbursement, and repayment begins within 60 days after the loan is fully disbursed. You can postpone repayment on your Parent PLUS loan until six months after your dependent student leaves school or drops below half time. During this postponement period, the parent is responsible for the interest that accrues and has the option to pay the accrued interest or have the interest added to the outstanding principal. Borrowers may borrow up to the total cost of attendance minus other financial aid received. Dependent student’s whose parents do not qualify for a Direct PLUS may borrow the Direct Unsubsidized Stafford Loan up to the student’s loan limit based on grade level.
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