The yearly limit on the amount to be borrowed under a PLUS Loan is equal to the cost of attendance minus any other financial aid for which the student is eligible. The interest rate on a PLUS Loan is variable but will never exceed 9 percent. The rate is adjusted each July 1. Parents begin repaying the loan within 60 days after the final loan disbursement. There is no grace period for these loans.
Interest begins to accumulate at the time the first disbursement is made.
Payment begins while the student is in school. To apply, you must fill out a Direct PLUS Loan Application and Promissory Note , available from a school financial aid office. Under the Direct PLUS Loan Program, your lender is the U.S. Department of Education. Loan money is sent directly to the school and applied to your school account. Repayment is made either through the Standard, Extended, or Graduated Direct Loan Repayment Plans .