**The information on this page is for the 2008 – 2009 academic year. For summer 2008 information, please click here.
Federal PLUS Loans
General Information
The federal PLUS Loan is a low interest rate loan for parents that can be used to help pay for the college education of a dependent undergraduate child. Independent graduate students may also apply for themselves.
The maximum amount you can borrow is the student’s cost of attendance minus other aid received by the student. This is a credit-based loan; therefore you must pass a credit check that will be performed by the lender in order to be eligible for this loan. There may be loan processing fees taken out by the lender before the funds are sent to the school.
2008-2009 Academic Year Federal PLUS Loan Information
Beginning with the 2008-2009 academic year, IUPUI and IUPUC will utilize the federal Direct Loan program for all federal PLUS Loans.
Direct Loan Information:
- Lender: US Department of Education
- Loan processing fees: 2.5% of each disbursement.
- This fee will be taken out of the loan amount received by the school. This means that you will repay more than what credits to the student’s university account. For example, if you borrow $1,000, $975 will apply to the student’s account, and you will repay $1,000 (plus interest).
- Interest rate: 7.9%, fixed
- Minimum monthly payment: $50 / month
- Repayment begins: 60 days after the loan is fully disbursed, or approximately in:
- October for fall only loans
- February for academic year or spring only loans
- July for summer loans
- Repayment benefits: 0.25% interest rate reduction when you sign up for auto-debit of your monthly payments
- Repayment options: flexible repayment options ranging from 10 to 30 years, including consolidation
Apply for a Federal Direct Parent PLUS Loan – available to parents of dependent undergraduate students
Apply for a Federal Direct Graduate PLUS Loan – available to graduate students
