FINANCIAL AID RESOURCES
ON-LINE

This program has proven to be very popular with parents because it gives them the option to fund college without using their current income, savings and investments, or even borrowing against their home....and under certain circumstances the government will actually pick up part of the cost.

Eligibility:
Once your eligibility has been determined, you may borrow up to the total cost of education at your student's school, including books, living and travel expenses, less any other aid for which the student is eligible. This includes borrowing for educational expenses already incurred this year.

Qualifications:
Either parent may apply....it's not based on income or assets....no collateral. Federal standards of creditworthiness are substantially more flexible than required under non-federally guaranteed programs. If you do not meet the minimum federal credit requirements you may still receive the loan if you obtain an endorser (co-signer) who does meet the minimum requirements.

Variable Interest Rate:
The variable interest rate for the PLUS is calculated annually by adding 3.1%to the rate of the 52-week U.S. Treasury Note and is capped at 9% for the life of the loan. A one-time government cost of 4% which is included in the total cost of education by the school and helps pay for all the program guarantees...and are deducted from the loan proceeds.

Payments and Borrowers Rights:
10 years to repay with no prepayment penalty. Payments begin usually 45 to 60 days after the second disbursement for spring (about February or March). The borrower may cancel or reduce the size of the loan by refusing any disbursement that is issued.

Benefits of the PLUS:

• If the 52-week U.S. Treasury Note rate plus 3.1% rises above the 9% cap, you will not pay any additional interest.
• In cases of economic hardship, payments may be deferred for up to three years.
• In the event of death of the borrower or student, or permanently disability of the borrower, your loan will be forgiven in full.
• PLUS loans may be prepaid in part or full at any time without prepayment penalty, and to keep payments at an affordable level PLUS loans may be consolidated into one account and will reduce monthly payments by 30% to 45%.