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Student Financial Services
Federal Parent Loan for Undergraduate Students (PLUS)
Frequently Asked Questions
What is a PLUS Loan?
What are the benefits of the PLUS Loan?
What are my repayment options?
What is a forbearance?
How do I apply for the PLUS loan?
What is a PLUS loan?
PLUS loans are federally-sponsored education loans for credit-worthy parents of undergraduate students. PLUS loans may be used to cover the full cost of education, including tuition and fees, room and board, books and supplies, transportation, and living allowances, less any other financial aid the student receives.
- A Federal Parent Loan for Undergraduate Students (PLUS) is an unsecured loan available to creditworthy parents of all income levels to help pay for a dependent child's postsecondary education.
- Federal PLUS loans are available in addition to Federal Stafford loans, which are offered to undergraduate students enrolled in a college or university. PLUS loans may not be taken out by the parent of students enrolled in graduate school.
- A natural parent, stepparent, or adoptive parent with no adverse credit history may borrow for each dependent child who is enrolled in school at least half time.
- Parents may borrow up to the actual cost of education minus other financial aid.
- The interest rate is fixed at 8.5%.
- Repayment begins 45-60 days after the final disbursement for the school year (which usually takes place in January) is made to the school. Payments are sent directly to the holder of the loan.
- The maximum repayment period is 10 years. The minimum payment is $50 or an amount that permits total repayment within the 10-year period. There is no prepayment penalty.
What are the benefits of the PLUS loan?
- You can obtain 100% of the college money you need, up to Cost of Attendance minus other Financial Aid
- Low, guaranteed interest rate
- No income or asset limit
- No collateral needed
- No lengthy forms
- Interest payments may be tax-deductible
- Interest rate reduction opportunity
- Flexible repayment terms
- Parents can make interest-only payments for up to four years (must be requested annually).
If you are not immediately eligible for a PLUS loan, your lender may work with you directly to help obtain eligibility.
What are my repayment options?
- Standard Repayment
- Fixed monthly payments (minimum payment of $50)
- A 10-year maximum repayment period.
- Graduated Repayment
- Monthly payments that gradually increase to ensure repayment in 10 years.
- Higher total interest cost than with the standard repayment plan.
- Income Sensitive Repayment
- Payments that increase or decrease each year as income rises and/or falls.
- 10-year repayment period, which can be extended annually if payments are less than standard principal and interest (maximum 15-year repayment period).
- Higher total interest cost than with the standard repayment plan.
- Extended Repayment
- 25-year repayment period if combined federal loan outstanding balance is greater than $30,000 and you were a new borrower on or after October 7, 1998.
- Lower monthly payments, however, total interest costs will be higher compared to the standard repayment plan.
Sample Repayment Chart
| EDUCATION LOAN REPAYMENT CHART | |||
| 7% | 8.25% | 9% | |
| Amount Borrowed |
Monthly Payment |
Monthly Payment |
Monthly Payment |
| $5,000 | $58 | $61 | $63 |
| $7,500 | $87 | $92 | $95 |
| $10,000 | $116 | $123 | $127 |
| $12,500 | $145 | $153 | $158 |
| $15,000 | $174 | $184 | $190 |
Chart is for purposes of estimation only; exact amounts are dependent upon specific loan data and repayment habits. Assumes a Standard Repayment Account. All payments and total charges are rounded to the nearest dollar. Minimum monthly payment is $50.
What is a forbearance?
If you are experiencing temporary financial difficulties, you may be eligible to receive a forbearance - that is, a temporary suspension of your loan payments. You are still responsible for all interest that accrues during an approved forbearance, but unpaid interest may be added to the loan principal no more frequently than quarterly and at the end of the forbearance. Contact your lender of choice if you feel you may qualify.
How do I Apply for a Plus Loan?
Below is a list of lenders* through which Saint Joseph's College currently processes Federal PLUS loans. To complete the Federal PLUS Loan Master Promissory Note (MPN), select the lender through which you want your loan to be processed. You will then be directed to their secure site to apply online. When given the option to e-sign your promissory note, it is strongly recommended you do so. Otherwise, the lender will print and mail to you a paper MPN that you will have to sign and mail back to them before your loan can be certified by Saint Joseph's College.
- Please have the following information ready:
- Name
- Social Security Number
- Date of Birth
- Address
- Phone Number
- Requested Lender
| Lender Name | Lender Code | |
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Chase Bank | 803000 |
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Key Bank | 813760 |
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Charter One Bank | 808140 |
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Student Loan Funding | 831455 |
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