Students who do not demonstrate need for part or all of the annual borrowing limit may still receive an unsubsidized loan and pay their own interest during the time they are in school. Payment of that interest may be delayed or capitalized based upon borrower preference. At present, disbursement is made in the form of a check made payable to the student and sent to the institution. The lender is typically a bank, savings and loan, or credit union. The student's parents must pass a required credit check from the lender in order to be eligible.
Interest begins to accumulate at the time the first disbursement is made.
Within 60 days after the final loan disbursement, parents must begin repaying the Federal PLUS Loan. Disbursements will be made in the form of a co-payable check issued to the parent and the institution and sent to the institution. The annual borrowing limit is the difference between the cost of attendance and the estimated financial assistance.