The interst will accrue on the principal borrowed and the student has the option of making regular interest payments or allowing the interet to be capitalized. The deferments, interest rate, and loan limits are the same as the subsidized loan. The loan amount the student may borrow is determined by subtracting the total financial aid received from the student's financial aid budget, staying within the loan limits. It is possible for a student to receive both a subsidized and an unsubsidized loan during the school year. PLUS loans are available to parents of dependent students.
Applications is made by the parent, signed by the student and certified by the school.
A check of the borrower's credit history will be required. The parent may borrow up to the difference between the student's financial aid budget and the total financial aid received. Deferment of the monthly payments will not be available based on the student's enrollment for a new borrower. The loan will be disbursed in two payments and will be made co-payable to the parent and the school. The school will require the parent to endorse the check and mail to the school for the funds to be applied to the student's account.