Federal PLUS Loans
Parents can take out a Federal PLUS Loan to borrow funds on behalf of
dependent, undergraduate students who are enrolled at least half time.
Like Federal Stafford Loans, your college or university will participate
in either:
- The Federal Family Education Loan Program (FFELP) — where
banks, credit unions and savings banks fund the loans.
- The William D. Ford Federal Direct Loan Program (Direct) — where the U.S. Department of
Education provides the money for the loan through the college or
university.
Loan Facts
A few Federal PLUS Loan facts:
- Parents must pass a credit check in order to borrow these
funds.*
- In most cases, these loans come in multiple disbursements.
- Federal PLUS Loans are not based on financial need.
- Parents are responsible for repayment.
- The interest rate is fixed at 8.50% (FFELP) or 7.90% (Direct).
- The loan limit equals the COA (Cost of Attendance), minus other
financial aid received.
- There is no grace period; generally, repayment begins within 60
days after the final loan disbursement for the academic year.
However, if you would like, Iowa Student Loan can defer repayment
while the student is enrolled on at least half-time basis.
Find a serviced lender.
*If parents apply for, but are denied a PLUS loan, students will have
the option to borrow additional Stafford Loan funds.
Apply for Your Loan
You may complete the Federal Parent PLUS Loan Application and Master Promissory Note online, if your student is attending FFELP college or university in Iowa.
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U.S Bank Borrower Benefits |
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U.S. Bank will provide a 0.25% interest rate reduction to borrowers who pay by Auto-Debit. Auto-Debit is a requirement to be qualified for the 0.25% interest rate reduction benefit. If the Auto-Debit feature is canceled or Iowa Student Loan receives three non-sufficient funds payments in a 12-month period, the rate reduction benefit is lost.
U.S. Bank will also provide a 1.00% credit of the original principal amount after the first 12 consecutive monthly on-time payments for loans first disbursed on or after June 1, 2008, and before Sept. 1, 2008. (Payment received no more than 10 days past the due date.) Note: If you are a first-time borrower or your student is a first-year undergraduate, your loan may not have a first disbursement date before Sept. 1, 2008.
Eligibility Requirements
To be eligible for the Federal PLUS Loan Borrower Benefit offered by U.S. Bank, the borrower must:
- Be the recipient of a Federal PLUS Loan disbursed on or after June 1, 2008.
- Borrow a Federal PLUS Loan from U.S. Bank.
Important Notice: Borrower Benefits may be modified or discontinued at any time without notice and at the sole discretion of U.S. Bank. Subsequent changes, however, will not affect loans already qualified for Borrower Benefits.
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