The PLUS Loan is a federally sponsored loan program that allows parents to borrow to meet educational expenses for dependent undergraduate students. The U.S. Department of Education is the lender and will assign your loan servicer.
To be eligible for the PLUS Loan the student must be considered a dependent student. The applicant must be the student's biological or adoptive parent or the student's stepparent.
The total amount of a PLUS loan may not exceed the cost of attendance minus all other financial aid.
Federal law sets the maximum interest rates and fees that may be charged for Direct Loans. Interest rates are set based on the date the first disbursement is made to your student account, at Southeast. Interest begins accruing as soon as the first disbursement is made.
|First Disbursement Date||Interest Rate|
|July 1, 2017 - June 30, 2018||7.00%|
|July 1, 2018 - June 30, 2019||7.595%|
Additionally, each loan has an origination fee that is withheld from the amount borrowed, slightly reducing the amount paid to your student account. For example, if you borrow $1,000 and the origination fee is 1%, you will only receive a payment toward your student bill of $990.00 ($1,000 - 1% ($10) = $990.00).
|First Disbursement Date||Origination Fee|
|October 1, 2016 - September 30, 2017||4.276%|
|October 1, 2017 - September 30, 2018||4.264%|
Repayment begins right after the last disbursement of the loan. There is no grace period for the PLUS Loan. The borrower will be notified by the servicer of the loan when the date of the first payment is due. To find out who services the PLUS loan, please visit the National Student Loan Data System.
Parents can request a deferment while their student is enrolled at least half-time (minimum of six hours), and for six months after he/she graduates or drops below half-time enrollment. Parents can request a deferment form through the servicer of their Parent PLUS loan.