Parent+PLUS

= What is Parent PLUS? =

The **Parent PLUS** Loan is a [|parent loan] in which the parent is the borrower and the loan is under the student's name. It might also come with a cosigner release option.

After a certain number of consecutive on time payments, the parent (as a co-signer) can apply to be released from the loan, making it entirely the student's obligation. Parent PLUS Loans are restricted to the parents or legal guardians of a dependent undergraduate student.

The interest rate for a Parent PLUS loan is 7.9% fixed (November, 2011). Interest accrues on this loan when it is disbursed to the school. You may receive a 0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account.

If you are a parent with PLUS Loans and you want to lower your monthly payment you may consider consolidating your PLUS Loans after the final disbursement for each academic year.

How to Apply for Parent PLUS
To apply for a Parent PLUS Loan you first go through the entire process of applying for financial aid. After completing the process and are ready to e-sign the Master Promissory Note you are then given the choice between: Subsidized, Unsubsidized, Graduate PLUS, and Parent PLUS. Choose the Parent PLUS option then follow the remaining directions.