Information about the New PLUS Loan Interest Rates

The Federal Parent PLUS Loan for Undergraduate Students enables parents and legal guardians with good credit histories to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time in an approved college or university. These loans are available through FFEL program. Most of the benefits to parent borrowers are identical in the two programs.

• The interest rate for a new PLUS loan is fixed for all new PLUS loans taken out after July 1, 2006 at a rate of 8.5%. These loans will not have variable rates.
• Families may borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses, travel less any other aid.
• These loans are non-need based, only credit rating based, which means that anyone can apply.
• These loans require no collateral (unlike other type of loans - including home equity)
• There is no penalty for early repayment, and consolidating your loans after graduation is easy! Click here for PLUS Consolidation!
• Interest may be tax deductible under the Hope Education Tax Credit.
• Completion of the FAFSA may be required (check with your college's financial aid office).
• Funds are usually disbursed quickly, during the first weeks of the semester.

The primary benefit is that families can borrow federally guaranteed, low interest loans to help pay for their child's education, without needing to worry about collateral, need-based forms, or FAFSA preparation time. Use our online application to Apply Today!