Made to parents of dependent undergraduate students to help pay for the child's education regardless of financial need. Loan based on credit history. Parent must have good credit history. Parents may borrow up to the cost of education minus any other aid the student qualifies for.
Interest accrues upon disbursement.
Interest can be paid as accrued or capitalized. Repayment begins immediately after the final disbursement for the academic year. The interest rate for the PLUS is variable, capped at 9 percent, and adjusted each July 1, based on the 52-week Treasury Bill on June 1 plus 3.1 percent.