Federal PLUS Loans

General Information

The federal Parent 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. Graduate students may apply for a federal Graduate PLUS Loan 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.



Federal PLUS Loan Information

IUPUI participates in the federal Direct Loan program for all federal PLUS Loans.


Direct Loan Information:

Lender: U.S. Department of Education

Loan processing fees: 4.204% of each disbursement. This means that you will repay more than what credits to your university account.  For example, if you borrow $1,000, $958 will apply to your account, and you will repay $1,000 (plus interest).

Interest rate: 7.9%, fixed

Minimum monthly payment: $50 / month

Repayment begins:
PLUS Borrowers—The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, a graduate student PLUS Loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Note:  Direct Loans will set GRAD PLUS loans as “deferred”; if the Graduate Student wants to make principle and interest payments they should contact Direct Loans.  Interest that accrues during these periods will be capitalized if not paid by the borrower during the deferment.

Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008 may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during the deferment.  Repayment (excluding deferments) begins sixty 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