Loan Type
Federal PLUS loans are for parents of dependent undergraduate students and for Graduate/Professional students. PLUS loans are not based on financial need but on creditworthiness. You may borrow up to the total cost of education minus other forms of student financial aid for which you or your child may be eligible. Your school must verify the amount you request and confirm that you or your child are enrolled at least half-time and making satisfactory academic progress.

Repayment begins within 60 days after the final loan disbursement. Graduate/Professional students can elect to have their PLUS loan placed in an in-school deferment status until graduation or school separation.

Eligibility
To be eligible for a PLUS Loan, you must meet all eligibility requirements, including passing a credit check.

Loan Amount

• $500 minimum and no set maximum loan amount
• Total amount borrowed can reach the full school-certified cost of education, less other sources of financial aid.

Interest Rate
PLUS loans disbursed on or after July 1, 2006 will carry a fixed interest rate of 8.5% for the life of the loan.

Fees
All PLUS loan borrowers pay a 3.00% origination fee that is charged by the federal government. In addition, your guarantor may charge a default fee of up to 1.00% of the total loan amount. These fees are deducted from each disbursement of your loan. You are responsible for repaying the entire amount of your loan, including fees and interest.

Parent PLUS In-School Forbearance
The Parent PLUS In-School Forbearance allows parents to forbear payments for up to 48 months while their dependent student is enrolled in school on at least a half-time basis. The forbearance will be granted in 12-month increments and interest will be capitalized at the end of each forbearance period. Download a Forbearance Request Form.

Repayment Terms
Parent PLUS borrowers must begin payment on their PLUS loans almost immediately. The first payment is due within 60 days after the final loan disbursement. There is no grace period for these loans. Interest begins to accrue at the time the first disbursement is made, and you will begin repaying both the principal and interest while the student is in school.

The first payment will be due for Graduate/Professional students within 60 days of final disbursement, but students can elect to have their loans placed in an in-school deferment status while they are attending school at least half-time and making satisfactory progress.

When PLUS borrowers enter repayment, they may choose from one of the following plans:

Standard Payment Plan - Sets equal monthly payments throughout your repayment term, each covering the principal and interest due that month. Your final payment may be slightly more or less than your other payments. Of all the options available, this plan is most likely to result in the lowest aggregated interest costs over the life of your loan.

Graduated Payment Plan - Reduces the amount of your monthly payments during the first years of repayment. If you select this option, during the first 2 years your monthly payments will be interest-only payments or higher depending on your loan balance. After the first 2 years of reduced payments you may have the option to renew the graduated payment plan for an additional 2 years. Although your initial monthly payments are reduced, the aggregated interest repaid over the life of your loan and your later monthly payments will increase. This plan will not extend your repayment term. Minimum loan amounts and other eligibility restrictions may apply.

Income-Sensitive Payment Plan - This repayment option allows you to pay between 4-25% of your gross monthly income (not to drop below the monthly accrued interest on your loan(s)). The income-sensitive payment is offered for a year at a time, up to a total of five years over the life of your loan. The remaining terms follow a standard payment plan. Eligibility and income documentation (i.e. pay stubs for the past 2 months) must be verified annually. Additional documentation may be required.

Extended Payment Plan - If you received your first Stafford Loan, Supplemental Loan for Students (SLS), or PLUS Loan on or after October 7, 1998 and the outstanding balance of these loans totals more than $30,000, you can opt to repay your loan over a 25-year term instead of a 10-year term.

Loan Funds
Chela will disburse your PLUS Loan funds in scheduled disbursements over the academic year. Funds are applied to your outstanding college costs, and any remaining funds are disbursed to the student.