Eligibility

• You may apply for a Parent PLUS loan to pay for the higher-education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
• A credit check is required.

Features

• Many Sallie Mae lenders offer borrower benefits on Parent PLUS loans that can save you money in repayment.
• Flexible repayment options are available.
• Postpone repayment while the beneficiary student remains enrolled at least half time and for an additional six months afterward.
• You can manage your account online 24/7.
• You get life-of-loan servicing from Sallie Mae.
• There is no prepayment penalty.
• There are no income or collateral requirements.
• If you have been denied a Parent PLUS loan, Sallie Mae's PLUS service can work with you to resolve your credit issues so you may become Parent PLUS eligible.
Interest may be tax-deductible.

Loan terms

Loan limit

You may borrow up to the full cost of your child's education less other aid received. 

Interest rate

The interest rate on PLUS loans first disbursed beginning July 1, 2006 is fixed at 8.5%. The interest rate on PLUS loans first disbursed on or after July 1, 1998 but before June 30, 2006 is variable and may change annually on July 1 but will never exceed 9%. The current interest rate on these variable rate PLUS loans is 5.01%. 

Fees

There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged.

Repayment

• Standard repayment: You make both principal and interest payments each month up to a 10-year repayment term. This plan has the lowest total interest cost.
• Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment.
• Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
• Extended repayment: If you have high student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment.

Legal

• You are responsible for all interest that accrues on the Parent PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
• Sallie Mae is registered service mark of Sallie Mae, Inc.
• Repayment on PLUS loans begins within 60 days after the final disbursement of the loan. You may postpone repayment while the beneficiary student remains enrolled at least half time and for an additional six months afterward.