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| PLUS Loans for Parents |
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 The Federal Parent
Loan for Undergraduate Students (PLUS), also called the parent
loan, is a federally sponsored loan for parents of students attending
college and is available at schools participating in the FFELP.
A bank, credit union, savings and loan association or in rare
cases, the school itself can actually make the loan.
This loan was created specifically
for parents of students after high school and has many
benefits not ordinarily found in credit cards or other
loan products. PLUS loans offer an alternative for parents
whose financial resources are insufficient to cover
anticipated education costs. The PLUS loan permits parents
to borrow up to the cost of education each year for
each dependent student in college less any other financial
aid the student may receive.
Parents, you choose
the lender. Keep in mind that this is the beginning
of a long-term relationship. It is a good idea to use
the same lender throughout your student's college career.
Through Brazos
Pre-Approval process, parents can determine their
credit eligibility in advance.
Please note that financial
need and family income are not considered for acceptance
for this loan. As a result, many parents who may not
be eligible for other federal loans can typically qualify
for a PLUS loan. The lender is, however, required to
review your credit history before approving the loan.
To find out if you qualify, fill out our PLUS
pre-approval form.
Your student should apply for
a Stafford Loan first, since the amount of your PLUS
loan could reduce the amount he or she can borrow under
the Stafford Loan Program. The terms on a Stafford Loan
are better than the PLUS Loan and only in the student's
name.
There are no annual or cumulative
limits as with the student loan, but the total of the
Federal PLUS loan combined with any other financial
assistance you receive cannot exceed the cost of attendance
as determined by the school less any other financial
aid the student may receive.
If the PLUS loan is denied,
once your school receives a copy of the denial
from Brazos, they will review the student's application
for any additional unsubsidized Stafford eligibility.
Federal PLUS Loans
at a Glace
| Level
of Study |
Annual
Limits |
Lifetime
Limits |
Rate
Cap |
| Undergrad |
Cost
of education minus aid |
No
Limits |
9% |
| 1-
Interest rates - Every effort has been made to show
the current interest rate for each program. All
interest rates, however, are subject to change,
and the rate listed may be different than the current
rate. |
TERMS:
| 1. |
The
interest rate of a Federal PLUS loan cannot exceed
9%. |
| 2. |
The interest
rate varies annually and is adjusted each July 1.You'll
be notified of interest rate changes throughout
the life of your loan. |
| 3. |
You may be
required to pay an origination fee of up to 3% of
the principal balance. This will be deducted from
the loan disbursement you receive. |
| 4. |
Repayment
begins within 60 days after the loan is fully disbursed.. |
| 5. |
Your accrued
interest will be capitalized (or added to the principal
balance) when you begin repayment. |
| 6. |
You may have
up to ten years to repay. The minimum payment amount
is $50 per loan. |
| 7. |
Many lenders
offer up-front discounts or repayment incentives
that affect the over-all cost of the loan. You should
examine these options carefully when choosing a
lender. You may get more money up-front, but actually
pay more in the long-term. |
APPLICATION PROCESS:
Complete
the Free Application for Federal Student Aid (FAFSA)
found at http://www.fafsa.ed.gov/, which will start
the financial aid application process at your school.
Your school may also have an institutional application
you must complete. You will receive a Promissory Note
that you must sign and return as instructed.
OBTAINING YOUR LOAN MONEY
Normally, loans are disbursed in two equal disbursements,
at the beginning and middle of the academic period.
Presently, most schools disburses PLUS Loans by paper
check made payable to you and your school and sent
directly to
your school
for
endorsement.
Choose Brazos Educational
Assistance, Inc. to obtain Diamond Benefits
(Lender Code #833228)
| For more information,
contact us at: |
BRAZOS EDUCATIONAL ASSISTANCE
P.O. Box 14445
Austin, TX 78761-4445
Austin office: (800) 375-9208
loans@bhesc.org |
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