The Federal PLUS (Parent Loan for Undergraduate Students) is a loan for the parents of dependent undergraduate students.  The loan is not based on financial need and can be awarded up to the cost of attendance minus other aid the student is receiving.  Your parents determine the amount they wish to borrow.  This loan may be subject to credit approval policies set by the lender.  This is a loan and must be repaid. 

Interest begins to accrue from the date of the loan disbursement.  The interest rate on the loan is  fixed at 8.5%.  An origination fee and Federal Default Fee may be deducted from the loan before it is disbursed.  The net amount of the disbursement varies between 96% and 97% of the gross amount accepted.  You may want to factor in an allowance for this fee when determining the amount to request.  Usually, PLUS borrowers must start making payments within 60 days of receiving loan funds.  Payments are made to the lender or secondary market servicing the loan. 
     

To receive this loan, your parent must complete the PLUS LOAN ACCEPTANCE FORM (included with the Award Notification Letter that is mailed to the student) and return it to the Student Finance Office.  A PLUS Master Promissory Note (MPN) is also required.  If you have completed a PLUS MPN with your lender after July 1, 2004, you do not need to complete a new PLUS MPN; it only needs to be completed once with the lender you select.