To assist with their student's educational costs, parents
can choose to participate in the Federal PLUS (Parent Loan
for Undergraduate Students) loan program. This is a federal
education loan program created specifically for parents
of dependent undergraduate students.
What is the interest rate on a PLUS loan?
The current PLUS interest rate is a fixed 8.50 percent.
Are there any fees?
PLUS loans are generally subject to a 3 percent origination
fee and a 1 percent default fee. However, the Texas Guaranteed
Student Loan Corporation is currently waiving its 1 percent
fee.
What are the repayment terms?
Repayment of your PLUS loan begins within 30-60 days after
the loan has been fully disbursed. However, many lenders
are currently offering forbearance opportunities which
allow
for delay of payments while the student is enrolled (although
interest will continue to accrue). The
length of repayment is generally 10 years depending on
the
amount borrowed.
How do I apply?
Families can apply for a PLUS loan through our on-line
application process. The parent borrower must consent
to a credit check (which will be conducted by the lender)
as part of the application process. Filing the FAFSA is
not a
prerequiste for borrowing a PLUS loan.
How much PLUS loan can my family request?
Parents can generally borrow the difference between the
university's cost of attendance minus their student's other
financial assistance. To determine your family's maximum
eligibility, please contact your student's St. Edward's
financial advisor.
How are the funds disbursed?
PLUS loan funds are send directly to the university
by electronic funds transfer (or in some limited instances
by paper check). Normally, during an academic year, the
funds are sent in two disbursements: the first at the start
of the Fall semester, and the second at the start of the
Spring semester.
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