Alternative Student Loans Alternative Student Loans are available through a number of private lenders. Loans are issued to students who need additional funds for educational expenses. A qualified co-signer is required. The Federal PLUS Loan enables parents with good credit histories to borrow up to the cost of attendance minus other financial aid for the current academic year. Interest rates for PLUS Loans are variable, but never exceed 9 percent.
Interest is charged from the date of the first disbursement until the loan is paid in full.
A fee of up to 4 percent is deducted each time a loan is made. Repayment begins 60 days after disbursement.