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 is variable but will never exceed 9 percent. The interest rate is adjusted each year on 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.
A FFEL Consolidation Loan is designed to help student and parent borrowers consolidate several types of federal student loans with various repayment scheduled into one loan. With a FFEL Consolidation Loan, you'll make only one payment a month. FFEL Consolidations Loans are available from participating lenders, such as banks, credit unions, and savings and loan associations. Most federal student loans or PLUS Loans can be consolidated.