This aid is given only for parents, with an acceptable credit history and with a dependent undergraduate student enrolled half time. For a PLUS Loan there are both the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program.
In order to get a Direct PLUS Loan, the most important is your promissory note given by your university, and a complete application fills out by your parents. Likewise, for a FFEL PLUS Loan your parents must complete an available application from your university to be finally sent to a lender for its evaluation.
In addition, an important fact is that your parents must pass the credit check, if not; someone from your relatives or friends could agree with you and try to get the loan.
But do not be sad, because, if your parents can not pass the credit check, they would demonstrate the existence of exhausting circumstances, or look for another program.
Annually, the PLUS Loan will depend, you will receive a cost of attendance, and plus you will receive money in other financial aid; your parents can borrow up the difference between both of them.
Once the loan has been approved, it will be send to your university, and they might require a payment of your parents and return to the school.
The payments will be done in at least 2 times, and in any of them the amount will be more that half of the loan. The first installment is to pay the tuitions, fees, room, board, and school charges. If would be a remaining, you could choose to receive it by check or ask the school to hold it for you.
The rate of interest will vary according to the date. For 2007-2008, the interest in both the Direct and FFEL programs is 8.02 percent. As well, the interest will be charged from the first date of pay until the full payment.
Also, besides of the interest, your parents will have to pay 4% of the loan, deducted in a proportional way each time a disbursement is made; or if they do not pay during the scheduled dates.
The grace period is not given in this program, due to 60 days after the complete disbursement; your parents will start the payment.
The repayments will be done by your parents directly to the lender or loan servicer, and they will send it to the U.S. Department of Education's Direct Loan Servicing Center.
Similarly, the PLUS Loan can be discharged, as well as the payment could be postpone; but both under special circumstances and conditions.
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