Many of America's families find they need more financial aid assistance than is provided by the Stafford Loan program. Families in this situation may be eligible for the Federal PLUS Loan for parents.
The PLUS loan for parents is a Federal Family Education Loan Program (FFELP) loan that is federally-insured at a low interest rate for parents of undergraduate, dependent students. Parents can take out a PLUS loan, regardless of financial need, for each child/student enrolled at least half-time.
Borrowers must pass a credit check and may borrow the full cost of education minus other forms of student financial aid received by the student. This loan is designed to assist students and parents by providing low interest rates, deferments, and forbearances if the parent borrower qualifies.
If you are a parent borrower, for loans disbursed on or after July 1, 2008, you may request that payment or principal be deferred (i) for the six-month period that follows any period when you are enrolled at least half-time (Post-Enrollment Deferment) and (ii) for any period when the student beneficiary is enrolled at least half-time and for the six-month period that follows (Post-Enrollment Deferment).
Capitalization of Interest
Interest will continue to accrue while payments are postponed. Although principal payments are not required during this period, borrowers have the option to pay interest either monthly or quarterly. Any unpaid interest at the end of the grace period will be added to the principal balance of the loan. Following this grace period, repayment of the loan(s) will begin according to the terms of the Promissory Note(s)and repayment agreements(s).
How do I apply?
Please download and return the PLUS Deferment Opt-In Form by fax at 1.866.545.9196 or by mail to:
Nelnet
P.O. Box 82565
Lincoln, NE 68501-2565