Steps to College Funding
Federal Direct PLUS Loan
Private or Alternative Loan
FAFSA Required
Yes
Recommended
Who is the lender?
U.S. Government
Credit unions, banks, and other finance companies
Who can borrow?
Available to parent of undergraduate student and graduate or professional students
Available to eligible borrowers – varies by lender
Credit Check
Yes – Credit score and debt to income not considered, but borrower cannot have adverse credit history
Yes – Full credit check – credit score, employment, income and established credit considered
Interest rate/fees
View current rates on the federal government’s website. There is a loan fee added to PLUS loans.
May be fixed or variable depending on the lender. Rates vary based on the lender and your circumstances.
Deferral while in school
Parent PLUS: full repayment after borrowing; deferment or interest-only payments by request.
Grad PLUS: full deferment after borrowing until six months after separation from school.
Grad PLUS: full deferment after borrowing until six months after separation from school.
Some lenders require payments while attending school; others allow a deferment option.
Repayment Terms
Eligible for the following repayment plans:
- Standard Repayment Plan (10 years)
- Graduated Repayment Plan (10 years)
- Extended Repayment Plan (Up to 25 years but must meet certain criteria)
- Additional options may be available under income-driven repayment plans
You should check with your lender to find out about your repayment options. Private loans often have options for longer repayment terms. For example, your education line of credit has a repayment term of 10 years for fixed rates and 20 or 25 years based on loan balance for variable rates.
Loan Forgiveness
You may be eligible to have some portion of your loans forgiven if you work in public service.
Although many private lenders do not offer loan forgiveness programs, some student loans can be forgiven in certain circumstances.
