PLUS Loan (Parent Loan for Undergraduate Students)
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What is the Federal PLUS Program? They are low interest loans parents can take out to pay for post-secondary education expenses for their
dependent, undergraduate student enrolled at least half time. Federal law requires that PLUS loan borrowers must not have an adverse credit rating. All PLUS loan
disbursement checks will be sent to the school. The interest rate is fixed at 8.5%. (This rate is in effect for the period July 1, 2008, through June 30, 2009.)
Interest can be paid periodically during periods of deferment or be capitalized and added to the principal. Repayment may begin within 60 days of the loan
being fully disbursed. Some lenders have programs that postpone payments until six months after the student graduates or leaves school, but the accrual of
interest is not delayed.
Is a PLUS loan or an alternative student loan a better option? Check out
Benefits/Comparison of the Federal PLUS Program vs. Alternative Loans. (PDF)
Am I eligible to take out a PLUS loan? Eligibility for the PLUS Loan is not based on financial need or family income. Parents applying
for a PLUS Loan undergo a credit check by the federal guarantor Great Lakes Higher Education.
How much can I borrow? Parents may borrow the full amount of the cost of education for a student, less any
other financial aid awarded. There are currently no aggregate borrowing limits in the Federal PLUS Loan Program. Information regarding applying for
a PLUS Loan will be sent to parents with the first Carthage billing statement of the academic year.
What happens if I am denied? If you are denied and you applied electronically through our website, Carthage is notified electronically and
freshman/sophomore students will be awarded a $4,000 Unsubsidized Stafford Loan and juniors/seniors a $5,000 Unsubsidized Stafford Loan. If you believe
you were denied unjustly, you can contact Great Lakes at (800) 247-0462 to receive counseling regarding your options.
2008-2009 PLUS loan lender list. When you apply below, you will be linked to the FAST CHOICE PLUS loan lender list. These are
lenders that work electronically with Carthage and have been reviewed keeping the best interests of the students in mind. You are not required to use one of
these lenders. Should you wish to use a different lender, you should contact the Financial Aid office. After you choose your lender, you will go through PLUS loan
preapproval. If you are approved, you will be allowed to complete a PLUS Master Promissory Note. If you have borrowed a PLUS loan before, the program will
not require you to do another one. Should you have problems with the FASTCHOICE or FASTPLUS programs, contact 1-800-824-8725 for assistance.
PLUS loans are federally guaranteed and the guarantor agent we use is Great Lakes Higher Education. You will receive a Disclosure Statement from
Great Lakes concerning both the student’s Stafford loans and your PLUS loan. Eligibility requirements and basic terms of the loan are the same for each
lender; however, each lender has additional benefits to parent borrowers. Contact each lender for the most up-to-date loan information.
- All Plus loans charge a 3% origination fee that is deducted at the time of disbursement.
- You can download a PLUS loan lender list here, but understand that it may not be as up to
date as the terms listed on the FAST CHOICE product. Review these carefully.
How do I apply? Apply
for a Plus loan online.
Note: To electronically sign the PLUS Master Promissory Note, you must have a PIN number from the U.S. Department of Education
Graduate PLUS Loans For information about Graduate PLUS loans, contact the Carthage Financial Aid Office. Graduate students should
not complete the Parent PLUS Loan.
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