PLUS Loans will be certified by USI for the maximum amount for which the borrower is eligible or the amount requested, whichever is less.

Annual loan limits are adjusted for enrollment status and unmet financial aid budget costs.  Both parents may borrow individually but the total of the two loans may not exceed the annual loan limit.

Parent PLUS Loan Interest Rates

Notes: Under current law (March 2006), the maximum interest rate is 9 percent.  Loans certified after June 30, 2006 have a fixed rather than a variable interest rate.

Repayment
Repayment of Parent PLUS Loans begins within 60 days of the second disbursement. Typically, a loan for the academic year goes into repayment in February (during the student's second semester).  Repayment is spread over many months.  To see sample repayment amounts and terms, use the Direct Loan program's Repayment Calculator.  Use the standard repayment method when using this calculator.

Disbursements
There are two disbursements in academic year loan periods, one at the beginning and one at the midpoint.

Processing Fees
2.5 percent is deducted from your loan disbursements by the Direct Loan program under federal guidelines.  For example, $1,000 borrowed for one academic year would disburse as $975, $487.50 at the start of the fall semester and $487.50 at the start of the spring semester. Note that a 4.0 percent processing fee applies to your PLUS Loan.  However, only 2.5 percent is deducted contingent upon the first 12 consecutive payments being on-time when repayment commences. 

Half-Time Enrollment Required
Students must be enrolled in at least 6 semester hours (half-time status) at the time of disbursement.  In cases where students drop below half time before the loan is disbursed, an exception may be made but only for the first disbursement and only in cases where the student meets all other eligibility criteria.

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