PLUS Loan Frequently Asked Questions

How do I apply for the PLUS Loan?

Student Loans from the Student Loan Network offer a variety of education loan programs for students and families, including the PLUS Loan. Below are answers to our most frequently ask questions on the PLUS Loan.

How do I apply for the PLUS Loan?

Please visit our PLUS Loan application page to start your application today.

Where should I mail my paper form to?

Please mail your paper form to:

The Student Loan Network
ATTN: PLUS Loan Application Returns
1250 Hancock Street, Suite 703N
Quincy, MA 02169

Do I need to fill out the FAFSA?

It is not required at all schools, but it is strongly recommended. The PLUS Loan is a federal student loan and therefore must be "certified" (approved) by the college's or university's financial aid office. If your college or university requires the FAFSA for all students, they will not certify a PLUS Loan (even though it's a loan for the parents) without a FAFSA on file. Check with your school's financial aid office.

Click here for information about how to file your FAFSA financial aid application.

Filing the FAFSA is a good idea because you or your child may be eligible for more financial aid than you think. Filing the FAFSA does not impact your eligibility for the PLUS Loan, as the PLUS Loan is based on credit, not need.

What is the interest rate?

8.5% fixed.

If you are a parent with PLUS Loans and want to lock in the lowest rate possible, you must consolidate your PLUS Loans after the final disbursement for that academic year.

Click here to consolidate your PLUS Loans!

What are the fees for a PLUS Loan?

Parents are required to pay fees of up to 4% of the principal of the loan. These include an origination fee of 3%, charged by the federal government, plus a guarantee fee of up to 1%, charged by the guarantee agency. These fees are deducted from the principal at each disbursement.

Currently, the guarantee fee of 1% is being waived by most guarantors.

When my child is done with school, can I transfer the PLUS Loan to them?

No. The PLUS Loan is a Parent loan, taken out in the parent's name. The student is not the borrower. If, as a parent, you are interested in a loan that has such a feature, you'll need to resort to private student loans with cosigner release, such as the Act Education Loan. These loans are in the student's name, and after a certain number of consecutive on time payments, the parent (as a co-signer) is released from the loan, making it entirely the student's obligation.

I'm an uncle/grandmother/friend - can I take out a PLUS Loan?

PLUS Loans are restricted to the parents or legal guardians of a dependent undergraduate student. Again, if you're interested in cosigning a loan for someone who is not your child, you'll need to borrow private student loan programs, such as the Act Education Loan.

What kind of credit is required for a PLUS Loan?

Eligibility for the PLUS Loan depends on a modest credit check that determines whether the parent has an adverse credit history. An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.

To ensure that you can obtain a PLUS Loan for your child's education, it is essential to have a recent copy of your credit report.

As a service to Parent PLUS Loan customers, we offer you the ability to order your credit report and score online for a nominal fee, in partnership with the Fair Isaac Company.

Click here to learn more about credit!

What if I am not approved for the PLUS Loan?

There are several options if you are not approved for the PLUS Loan, as some applications are declined for reasons other than poor credit. If you are declined, you can:

• Apply for an Private Student Loan
• Find a co-signer and apply again

I already have a PLUS Loan. How can I find out more information about it?

You can check the status of your loans by using the National Student Loan Database System (NSLDS). You can access NSLDS for free at www.nslds.ed.gov

When do I begin repaying a PLUS Loan?

Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while you are in school.

Apply Securely Online for a Parent PLUS Loan