A Federal Parent Loan for Undergraduate Students (PLUS)* lets parents borrow money to cover any costs not already covered by their dependent student's financial aid package. PLUS loans have fixed interest rates (8.5% as of early 2010)†. Repayment begins 60 days after the funds are disbursed with repayment terms of up to 10 years. If needed, there are special provisions to delay repayment until after the student graduates, leaves school, or his/her academic schedule falls below half-time status.

The parents, not the student, are responsible for the repayment of PLUS loans. If the student agrees to make payments on the PLUS loan, but fails to do so, the parents are held responsible.

*Financial aid is available to those who qualify

†Rates subject to change at any time