  |
 |
 |
| ||
|
|
|
|
| ||
|
|
|
Federal Parent Loans for Undergraduate Students (PLUS) and Grad PLUS (for Graduate Students) Federal PLUS loans are long-term loans borrowed directly from the federal government. Parents and graduate students may borrow up to the full cost of attendance, as defined by the UCSC Financial Aid Office, less any financial assistance the student receives. Borrowers must demonstrate creditworthiness for loan approval. PLUS Loan Basics is a brochure that provides more information about this loan. In addition to the FAFSA, the parent or graduate student borrower must submit a separate application to apply for this loan. LOAN APPLICATION PROCEDURES
|
|||||||||||||||||||||||
| Example Only | Your Information* | |
| Estimated FA Budget | 26,000 |
|
| Minus Total Aid | 10,000 |
|
| Equals PLUS Eligibility | 16,000 |
* Your information is found in the MyUCSC Student Center. Click on View Financial Aid > Aid Year > Financial Aid Summary
Federal PLUS and Grad PLUS Terms and
Eligibility Criteria Parents of dependent students and UCSC graduate students may borrow up to the full cost of education, as defined by the UCSC Financial Aid Office, less any financial assistance the student receives. Parents must demonstrate creditworthiness for loan approval.
Graduate students may also qualify for this loan.
Eligibility Requirements
Must be a U.S. citizen or eligible non-citizen |
Must submit the Free Application for Federal Student Aid (FAFSA) |
Must not be in default on any type of a federal student loan |
Students must be enrolled in at least half time in a degree program (undergraduates at least 6 units and graduate students at least 5 units). |
Students must have borrowed the yearly maximum Federal Direct subsidized and unsubsidized loan. (These have better terms and interest rates than a PLUS.) |
Interest
The interest rate is 7.9 % fixed for loans received on or after July 1, 2006. Interest accrues from the date you receive loan payments. It is possible to defer repayment until after the student graduates or enrolls less than half time.
Fees
Combined origination and insurance fees: 4% less an up front interest rebate of 1.5% results in a net up front deduction of 2.5%. Fees are deducted from the loan amount.
Repayment
The repayment period is calculated from the day after the loan is fully disbursed (Usually around the beginning of April).
Your first payment is due within 60 days after the final loan disbursement.
Prior to the official repayment start date it is not necessary to repay principle however interest on the disbursed loan amount will be charged. You can either pay the interest quarterly or add it to your loan balance, increasing the principal upon which future interest will be calculated, thus increasing the amount you'll repay.
Deferred Payments
Borrowers with PLUS loans first disbursed on or after July 1, 2008 have the option of deferring loan repayments until six months after the student ceases to be enrolled at least half time. You must contact the Direct Lending Servicing Center at (800) 848-0979 to request a deferment.
