Federal Parent PLUS loans
The federally sponsored Parent PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child's education (less other financial aid).
Eligibility
- You may apply for a Parent PLUS loan to pay for the higher-education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- A credit check is required.
Features
- Many Sallie Mae lenders offer borrower benefits on Parent PLUS loans that can save you money in repayment.
- Flexible repayment options are available.
- Postpone repayment for up to 60 months including while your dependent child is in school.
- You can manage your account online 24/7.
- You get life-of-loan servicing from Sallie Mae.
- There is no prepayment penalty.
- There are no income or collateral requirements.
- Interest may be tax-deductible.
- We have an easy online application and approval process with an instant credit decision.
Loan terms
Loan limit
You may borrow up to the full cost of your child's education less other aid received.
Interest rate
The interest rate for Parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.
Fees
There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged. Another way to help pay down your loan
With Upromise Loan LinkSM student and parent borrowers who join Upromise® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans, including the Parent PLUS loan. Visit www.salliemae.com/
upromise to learn more and enroll today.
Legal
- You are responsible for all interest that accrues on the Parent PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
- Repayment on PLUS loans begins within 60 days after the final disbursement of the loan.