The federally sponsored Parent Loan for Undergraduate Students (PLUS) is a low-interest education loan for parents of undergraduate, dependent students. With a PLUS Loan, you can fund the entire cost of the student's education (less student financial aid). This includes:

• Tuition.
• Room and board.
• Books.
• Supplies.
• Living expenses.

• Not based on income or assets.
• No collateral needed.
• Low variable interest rate that will never exceed 9%.
• Interest may be tax deductible.
• No pre-payment penalty.

• U.S. citizen or non-citizen permanent resident.
• Parent of a full-time or half-time undergraduate dependent student.
• While the federal government does not require you to file the Free Application for Federal Student Aid (FAFSA) to qualify for a PLUS Loan, some schools do require the FAFSA for PLUS borrowers.

You are not required to file the Free Application for Federal Student Aid (FAFSA) to qualify.

Rates and fees

• 6.10% for loans disbursed between July 1, 2005 and June 30, 2006.
• Variable rate subject to change by federal government July 1 of each year.
• Maximum is set by the federal government (capped at 9%).
• Interest begins to accumulate upon the first PLUS Loan disbursement.

Loan limits

Up to the total cost of the student's education as determined by school attended (minus other aid received).

Repayment

An easy way to repay your PLUS Loan is through our free, online account management tool Manage Your Loans^SM. Pay your bill electronically, use automatic debit or any of our other features.

We also provide convenient repayment options. Check them out below and see which one would be right for you:

• Standard repayment: Principal and interest payments are due monthly throughout the repayment period.
• Graduated repayment: Payments are lower at the beginning of repayment and slowly increase at specific times and amounts over the life of your loan. May extend loan repayment term beyond the standard 10 years.
• Income-sensitive repayment: Monthly payments are based on a percentage of your monthly income. May extend loan repayment term beyond the standard 10 years.
• Extended repayment: Lower monthly payments through an extended repayment period, up to 25 years.

PLUS Loans have a standard 10-year repayment term with no prepayment penalty. Repayment starts within 60 days after final disbursement of the loan. You may also be eligible for delayed repayment (deferment or forbearance).