Mansfield University Home PageThe Federal Parent Loan for Undergraduate Students (PLUS) is a federally sponsored, low-interest loan available to parents and step-parents of undergraduate students. The PLUS Loan allows parents to supplement their student's financial aid package by borrowing money to cover any costs not already covered by the student's aid. Families that need additional financing for educational expenses should consider a Federal PLUS Loan.
The PLUS Loan is funded by participating banks, savings and loan associations and credit unions and is guaranteed by state or government agencies.
Loan Limits/ Eligibility
Families may borrow the difference between the total cost of the student's education (including books, fees, and personal expenses) minus any financial aid the student will receive.
Interest Rate and Loan Fees
Like the Stafford Loans, the PLUS Loan has a variable interest rate that is set each July 1st. The rate is calculated as the 52 week T-bill rate + 3.10% and cannot exceed 9.0%. The interest rate on loans borrowed for the 04-05 year will be 4.17%.
You will be charged a loan fee of up to 4%, which is deducted proportionately from each loan disbursement. A portion of this fee goes to the federal government and a portion goes to the guaranty agency to help reduce the cost of processing your loan.
Credit Requirements
PLUS Loan borrowers are required to pass a credit check based on criteria set by the Department of Education. However, if a parent is not eligible for a PLUS Loan because of their credit, they may still qualify by obtaining a credit worthy co-signer. Parents must also meet general financial aid standards, such as meeting citizenship requirements and not being in default or owing a refund to any Federal Aid programs.
Repayment Terms
Repayment begins 60 days after the final disbursement of each loan. The maximum repayment period is 10 years, and the minimum monthly payment is $50.00.
Selecting A Lender
We encourage you to use one of the lenders on our preferred lenders page.
For additional information on the PLUS Loan Program, please visit Mapping Your Future to view a helpful PLUS Loan Guide.
