October 6, 2006

PLUS Loans 101

Posted in Parent PLUS Loans at 9:10 AM by Joe From Boston


Unfortunately with the current cap on Stafford Loans, it is nearly impossible to pay for all of a student’s tuition with just Stafford Loans. 

The next step for many families is a PLUS Loan.  PLUS Loans are taken out in the name of the parent or guardian, not the student.  They are credit-based loans, though the credit requirements are generally much less stringent than housing, auto or private education loans. 

Like the Stafford Loan, the PLUS Loan is a federal program, regulated by the government with a fixed interest rate that is capped by Congress.  Currently, the PLUS Loan interest rate is 8.5%.

Unlike the Stafford Loan, a PLUS Loan allows you to borrow up to the cost of education (tuition, room & board and school fees) minus any other financial aid such as Stafford Loans, work study, scholarships, etc.

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