Parent PLUS Loans

On March 30, 2010, the Health Care and Education Reconciliation Act was signed into law. A component of this Act is the elimination of the Federal Family Education Loan Program (FFELP) that allowed banks and private lenders to provide federal loans. Beginning on July 1, 2010, all federal student loans will be funded through the government’s Federal Direct Loan Program. Based on these changes, Graduate Leverage no longer offers Parent PLUS Loans. Please visit the U.S. Department of Education’s website for more information on the Direct Loan Program and Parent PLUS Loans.

Here is some important information that might be helpful as you plan to pay for school:

What is a Parent PLUS Loan?

A Parent PLUS Loan is a low-cost federal loan for parents of undergraduate students who require additional funding for college after grants, scholarships, other free aid and Stafford loans have been considered. Only a parent may borrow the Parent PLUS loan on behalf of a dependent undergraduate student. Parent PLUS Loans are available to families at a fixed rate and funds are disbursed directly to the school.

Eligibility for the Parent PLUS Loan is based on the parent’s credit history but not their credit score. This typically makes the Parent PLUS Loan more accessible than private student loans which have more stringent eligibility criteria.

Repayment of the Parent PLUS Loan may be deferred while the student is in-school. The deferment option provides flexibility for families while managing educational costs.

We encourage undergraduate students to complete the Free Application for Federal Student Aid (FAFSA) and any other application requirements before applying for the Parent PLUS Loan. The FAFSA will determine a student’s qualification for grants, scholarships and low-cost student loan programs.

Loan Terms: