Frequently Asked Questions

The Student Plus Program is an option that provides families an alternative to costly private loans by making the Federal Direct Parent PLUS Loans more suitable. This new program is best for families who are looking for a low cost source of funds and who also want the student to make the payments. The Student Plus Program utilizes the Federal Direct Parent PLUS Loan as the underlying source of funds so families benefit from a low fixed interest rate and the flexible repayment options associated with the Federal Direct Parent PLUS Loan. While we rely on the Federal Parent PLUS Loan as the underlying source of funds, our program is not affiliated with the Department of Education or the Federal PLUS Program.

When a parent applies for the Student Plus Program, we perform a credit check to determine if the parent appears to meet standard Federal Parent PLUS Loan eligibility requirements. If not, we provide instructions that we cannot continue with the Student Plus Program application unless he or she is able to obtain a Federal Parent PLUS Loan. We also encourage parents to contact the financial aid office to learn about additional options and explore the endorser process if needed.

The set-up fee and nominal transaction fees are used to establish and administer the servicing aspects of the program. The set-up fee ranges from $100 to $250 and may be deferred for an additional charge. The standard processing fee is $4.75 per month during repayment (additional fees may apply).

There is NO change to the underlying PLUS loan and NO impact to the origination, processing or disbursement of the funds. The Federal Direct Parent PLUS Loan used by Student Plus Program participants is no different than any other Federal Direct Parent PLUS Loan.

It is important to note that while the student makes payments, the terms of the Federal Direct Parent PLUS Loan are always in effect. The student’s failure to satisfy the Student Plus Program agreement does not remove the parent’s repayment obligation on the Federal Direct Parent PLUS Loan.

Our program is not intended for parents who prefer to make the loan payments and would use a Federal Parent PLUS Loan anyway. We believe the Federal Parent PLUS Loan is the most widely available and lowest cost supplemental funding option for families.

We developed this program to help families who avoid the Federal Parent PLUS Loan because they prefer the student billing and payment services that most private loans provide. Our program creates a scenario similar to a parent cosigned private loan, but allows the family to benefit from the advantages of the underlying Federal Parent PLUS Loan.

A family may establish an agreement on their own where the student is expected to participate in the repayment of the loan. However, families using our program indicate they find value in having a more formal, legal agreement as well as the capabilities of an experienced student loan servicer to handle the billing, notices and payment processing.

• Based on current economic conditions, interest rates on private loans average 11%. Since most private loans have a variable interest rate, the expected rates throughout the life of these loans is projected to be approximately 15%*

• U.S. citizen or a permanent resident
• Valid SSN
• Enrolled at least half-time in a degree program

Undergraduate Student Stafford Loan Limits – dependent students:
1st year - $5,500
2nd year - $6,500
3rd year - $7,500
4th year - $7,500

Undergraduate Student Stafford Loan Limits – independent students:
1st year - $9,500
2nd year - $10,500
3rd year - $12,500
4th year - $12,500

Graduate or Professional Student Stafford Loan Limits:
$8,500 Subsidized Stafford
$12,000 Unsubsidized Stafford

Parent PLUS Loans are federal loans in which the parent is the borrower for a dependent student. This loan is only available to parents of undergraduate students.

Graduate PLUS Loans are federal loans designed specifically for graduate students who have already reached the limit of Stafford loans and need additional funds.

• U.S. citizen or a permanent resident
• Approved credit evaluation
• Valid SSN
• Parent of student enrolled at least half-time in an undergraduate degree program or a graduate student with at least half-time status.

• Origination fee: 3%
• Interest rate: fixed 8.5% for FFELP Loans; 7.9% for Direct Loans

Repayment begins as of the final disbursement date. Payments will be due within 60 days of the final disbursement or deferment end date.

For Parent PLUS loans disbursed on or after 7/1/08, a deferment period is available upon request during the in-school period and 6 months following the in-school period.

For Graduate PLUS loans a deferment period will be automatically granted during the in-school period and 6 months following the in-school period, unless requested otherwise.