Federal Parent Loan for Undergraduate Students (PLUS)
The federally sponsored Parent Loan for Undergraduate Students (PLUS) is a low-interest education loan for creditworthy parents of undergraduate dependent students who are enrolled at least half time (6 credits). The PLUS lets parents fund the entire cost of the student's education (less student financial aid). This includes books, supplies, living expenses, as well as direct costs like tuition and room and board.
NSU endorses Nellie Mae (Lender code: 829076) as the lender of choice for the PLUS loan, using an electronic format to expedite the processing of the loan. It is recommended that you request funds for the entire academic year in which the student will be attending.
Parents may apply online for the PLUS Loan. The process will take you through the online Credit Information page after indicating your Social Security number and date of birth. Once approved, you will be instructed regarding the completion of the online PLUS Master Promissory Note (MPN). [The PLUS MPN is only required to be completed once, unless you change lenders. However, you are required to complete a credit check each academic year for additional PLUS loan requests.] An "Electronic Signature and Print Option" screen will provide you the option to sign electronically or to request Sallie Mae to send a copy.
Advantages of the PLUS are:
- PLUS loans are not based on income or assets.
- PLUS borrowers do not need collateral.
- PLUS loans offer a low fixed interest rate of 8.5% (beginning July 1, 2006).
- PLUS loan interest may be tax deductible.
- Parents may take up to 10 years to repay the loan.
- There is no pre-payment penalty.
- Automatic Debit (automatic payment) customers get a .25 percentage point interest-rate cut.
Requirements
- U.S. citizen or permanent resident.
- Parent of a full-time or half-time undergraduate. The student must meet all eligible federal criteria.
- No adverse credit.
The PLUS interest rate for 2005-2006 (July 1, 2005 – June 30, 2006) is 6.10% and for 2006-2007 (July 1, 2006 – June 30, 2007) is a fixed rate of 8.5%
Apply Now
Click here to apply for the PLUS loan online.
