The federal PLUS loan is a loan that a parent or graduate student may obtain to cover any remaining amount up to the student's financial aid budget. A-B has partnered with American Education Services for the PLUS loan.
Eligibility
In addition to the requirements in the Federal Financial Aid section, you must:
- Be enrolled at least half-time (6 hours per semester) during the entire period of your loan. These hours cannot include audit hours or noncredit courses.
- Check with the Business Office to determine amount needed for the PLUS loan for the academic year.
- The borrower's credit history checked online or by calling AES at 1-800-437-3692.
- Determine your loan eligibility and be awarded before your last day of eligible enrollment.
- Borrower must complete a PLUS Master Promissory Note.
Interest Rates
- Interest rates on the PLUS loan is fixed at 8.5% for any loans disbursed after July 1, 2006. For all PLUS loans before July 1, 2006 the federal government sets the interest rate every July 1.
Payments and Limits
- Payments by the borrower begin 60 days after the final disbursement of the loan or for graduate students when they cease to be enrolled half-time.
- Your parent or a graduate student may obtain a PLUS in addition to other student loans you may receive.
- Total financial aid cannot exceed the cost of your education.
- AES sends the funding to the college through EFT (Electronic Funds Transfer) where it is put on the student’s account.
- Parents may decide whether to have any excess funds sent to the parent or the student.
- Different lenders will offer interest rate reductions or principle credit on the Federal PLUS Loan.
- There is a .25% interest rate reduction for automatic debit.
- There is a 3% origination fee on the Federal PLUS Loan.
- Certain lenders may allow parents who feel immediate repayment of their Federal PLUS Loan may cause temporary hardship a delayed repayment plan for up to four academic years.
To Apply
See the Application Checklist.
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