PLUS loan information

If you are a borrower who has experience with PLUS loans, you can bypass this information page by using our PLUS Pre-approval process.

Description of the Federal Family Education Loan (FFEL) PLUS Loan Program
Federal PLUS Loans are available to:

  • Parents (natural or adoptive) and most stepparents of dependent undergraduate students
  • Graduate and professional students

PLUS loans are made by participating lenders and are guaranteed by the Educational Credit Management Corporation (ECMC).

PLUS Loan Terms and Requirements

Eligibility
To be eligible to borrow under the Federal PLUS Loan Program, you may not have an "adverse credit history." Your lender will review your credit history to make sure you are eligible. When you complete the PLUS Loan online Pre-approval Form, your lender will obtain your credit report.

Borrowing limits
The maximum annual amount a parent or graduate or professional student may borrow is the cost of attendance (as determined by the school) less other financial aid the student receives. There is no lifetime maximum borrowing limit per student.

Interest rate
Effective July 1, 2006 all new PLUS loans will be made at a fixed rate of 8.5 percent.

Fees
Your lender may charge a loan origination fee of up to three percent of the loan amount. ECMC is authorized to charge a Federal Default fee of up to one percent, but we currently do not charge any fee to guarantee your loan.

Repayment
Your PLUS loan typically is disbursed in two or more installments with repayment beginning within 60 days of final disbursement of the loan. Your lender can tell you about deferment and forbearance options that may allow you to begin repaying at a later date.

Payments may be spread over 10 years, not including periods of deferment and forbearance. The minimum monthly payment is $50 but can be higher depending upon the amount you borrow. For more information on PLUS loans, contact your lender, college financial aid office, ECMC, or the U.S. Department of Education.

PLUS loan application
For more information on the PLUS program contact an ECMC representative by e-mail or by phone at 888.775.ECMC (3262).