Parent PLUS Loans
The federal government offers the Parental Loan for Undergraduate Students, or PLUS loan, to parents and stepparents of dependent students. Parents can borrow up to the total cost of their dependent's undergraduate education, minus any other aid awarded.
Dependent or Independent Student?
Parents Save
- Save 0.25% on the rate with automatic payments1
Note: Interest rate reduction benefit goes into effect at the time of repayment. Repayment begins 6 months after you graduate, leave school or drop below half-time status. Benefit is for loans first disbursed on/after November 1, 2008.
Parents Benefit
- 8.50% fixed rate
- 10-year repayment term
- 15-day grace period after payment due date
- Alternative repayment plans available, including graduated and income-sensitive plans
Eligibility
- School's financial aid office determines eligibility
- Student must be enrolled at least half-time
- Parent must meet credit criteria
(If you are denied a PLUS loan due to your credit history, your student may be eligible for additional unsubsidized Stafford loan funds.)
Fees
- 1% insurance fee2
- 3% origination fee
Disbursement
- Loan funds are sent to the school at the beginning of each semester.
- The insurance and origination fees are withheld from each disbursement.
Repayment
New PLUS Borrowers
If your first PLUS loan was disbursed on/after July 1, 2008, you have the option of deferring payments as long as your student is enrolled in school at least half-time.
Monthly payments begin after the loan is fully disbursed. At that time, if you wish to defer payments, simply contact our student loan servicer, Great Lakes Educational Loan Services, Inc., to request a deferment.
After your student has graduated, left school, or dropped below half-time status, you can request the suspension of payments for an additional six months.
- Interest accrues after funds are disbursed and while payments are deferred. Any unpaid interest will be capitalized at the end of a deferment or forbearance.
- Payments can be made at anytime without penalty.
- You will receive quarterly interest statements.
Current PLUS Borrowers
If you have PLUS loans that were taken out prior to July 1, 2008, your loans are not eligible to be automatically deferred because your student is in school. However, there are options available to reduce or suspend your monthly payments. To review your repayment options, please contact our student loan servicer, Great Lakes Educational Loan Services, Inc. at 800-236-4300.
1To be eligible for the interest rate reduction for automatic payments, you must be signed up for automatic payments through Great Lakes Educational Loan Services. If at any time automatic payments are stopped or the loan is not in repayment status, the rate discount will not be applied. UW Credit Union reserves the right to modify or discontinue benefits at its discretion and without notice.
2The insurance fee, also known as the default fee, is charged by the agency that guarantees your loan. Great Lakes Higher Education Guaranty Corporation is the guarantor for all our federal student loans. The fee is used by the guaranty agency in the event of a borrower's default, death, or disability.
