What is a PLUS Loan?

 

These student loans are available to students' parents or graduate students.

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PLUS Loans are federal student loans for graduate and professional students and parents of undergraduates. PLUS loans made to parents can't later be transferred to the child. The parent who receives the loan must repay it.

Borrowers can take out PLUS Loans up to the cost of attendance, which is determined by the school, minus any other financial aid the student receives. For PLUS Loans made between June 30, 2013 and July 1, 2014, the interest rate was 6.41%. PLUS Loans made between June 30, 2014 and July 1, 2015 carry an interest rate of 7.21%

You must pass a credit check to obtain PLUS Loans. If you don't qualify on your own, you may be able to get PLUS Loans with a cosigner (the Department of Education calls this person an "endorser").

For more details on PLUS Loans, see the U.S. Department of Education website.

 


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Jurisdictional relevance: US

Legal Consumer - Norwich, OHLaw. The content of this article pertains to all US states and counties.