The loans bear interest at the rate of five percent a year on the unpaid balance. Repayment may extend over a ten-year period.
Borrowers have the interest on their loans paid by the federal government while attending college.
Repayment begins six to nine months after students cease at least half-time attendance. Dependent borrowers may receive both subsidized and unsubsidized Stafford Loans totaling up to the applicable Stafford limit if they do not qualify for the full amount under the subsidized program. These loans are made to parents of dependent undergraduate students. Borrowers should apply for PLUS loans in the same manner as a Stafford Loan with the exception that borrowers do not have to demonstrate need. Parents may annually borrow up to the cost of attendance minus other financial aid, provided that criteria for establishing credit are met.