PLUS are processed for one academic year at a time. PLUS loan applications must be processed through a private lender who will approve or deny the application based on a review of the the parent borrower's credit history. PLUS loans are typically cheaper than private student loans because PLUS loan borrowing terms are regulated by the U.S. Department of Education. Unsubsidized Stafford Loans are not interest free while the student is in school. The student must enroll for at least 6 credits for each semester in which the PLUS loan will be received.
PLUS loans are only available to parents, step-parents, and legal guardians of dependent students.
Non-exempt students must have registered with the Selective Service Administration. The student and parent must not owe a refund on any federal grants, must not have borrowed federal student loans in excess of annual or aggregate loan limits, and must not be in default on any federal student loans unless satisfactory payment arrangements have been made. The student and parent must be U.S. Citizens, U.S. Permanent Residents, or Other Eligible Non-citizens as defined by the U.S. Department of Education. Interest begins accruing when the loan is disbursed. Parents must begin repaying the loan 60 days after the final loan disbursement of the loan period.