Federal PLUS Loans
Many families may find it necessary, or more convenient, to apply for other loan programs. College is recognized as an important investment and the expense can be financed. If your family is not eligible for need-based financial assistance or chooses not to apply, the Federal PLUS Loan Program offers an alternative resource. If your family receives financial assistance but wishes to finance all or part of your expected family contribution, these programs can close the gap between total costs and the financial assistance offered by Loyola. Eligibility for some of these programs is based upon the creditworthiness of your parents.
The Federal PLUS Loan is available to parents of dependent undergraduate students. Parents may borrow up to the full cost of attendance minus other assistance during an academic year. The interest rate is fixed with a 8.5% cap. Interest begins to accrue after disbursement of the loan, and the first monthly payment of principal and interest is due within 60 days. In order for a parent to receive a Federal PLUS Loan, a credit check is performed by the lender to ensure the parent is creditworthy. Pre-approval for the Federal PLUS Loan can be started by contacting a lender below.
Grace Period and Deferment For Parent PLUS Borrowers
Beginning July 1, 2008, parents may choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. This option is available to parents, regardless of the lender used for the loan.
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Accruing interest during this deferment period can either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
Graduate students: For information about Graduate PLUS Loans, including a comparison with alternative loans, click here.
Students with a registration block: Families applying for a PLUS loan in order to lift a student registration block should click here (PDF) for more information.
Suggested Lenders
Special Note regarding provisions for Parents delinquent on mortgage or other specified payments.
Lenders to consider parents eligible for PLUS loans even if, during the period January 1, 2007, through December 31, 2009, the parents are or were:
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No more than 180 days delinquent on a mortgage payment on their primary residence
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No more than 180 days delinquent on any medical bill payments
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No more than 89 days delinquency on the repayment of "any other debt"